"The net supply of Treasuries, or gross issuance minus the amount of maturing debt, will fall by an average of $32.5 billion a month this year, to $77.3 billion, which will leave an average of $99.4 billion of investable cash a month from maturing debt, up from $68.1 billion in 2011..."
The truth about deficits and interest rates:
"Our federal government spends money through the congressional authorization and presidential approval process set forth in the United States Constitution (more or less). It also collects tax revenues in ways approved by congress and the president. Spending injects money into the economy; taxes subtract money from the economy.
When the government’s budget is balanced, it is taxing the same amount as it is spending. The adding and subtracting cancel each other out, so spending just redirects the economy in directions the government favors.
When the government runs a budget surplus, it taxes more than it spends. The tax subtraction from the economy exceeds the spending addition. The government, in this case, is diminishing the amount of financial assets available to the economy.
When the government runs a budget deficit, it spends more than it taxes. The spending addition exceeds the taxing subtraction. The government is adding to the amount of financial assets available to the economy.
Our government issues debt to the public when it runs a budget deficit, issuing a dollar in bonds for every dollar it spends in excess of taxes collected. But because the bonds and the deficit spending are perfectly matched, there’s no net added demand on the economy’s financial resources."
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