MSNBC:

With President-elect Barack Obama and congressional Democrats considering a massive spending package aimed at pulling the nation out of recession, the national debt is projected to jump by as much as $2 trillion this year, an unprecedented increase that could test the world’s appetite for financing U.S. government spending.

But about 40 percent of the debt held by private investors will mature in a year or less, according to Treasury officials. When those loans come due, the Treasury will have to borrow more money to repay them, even as it launches perhaps the most aggressive expansion of U.S. debt in modern history.

While the current market for Treasurys is booming, it’s unclear whether demand for debt can be sustained, said Lou Crandall, chief economist at Wrightson ICAP, which analyzes Treasury financing trends.

"There’s a time bomb in there somewhere," Crandall said, "but we don’t know exactly where on the calendar it’s planted."

My comment: It is obvious that with all of our former creditors announcing that they too will be attempting to stimulate their economies there will not be enough money to finance all this debt. The only option then is for the FED to monetize all of this debt. This is bad for consumers as the increase in money supply will lead to higher prices. This will be especially true as manufacturers and retailers go bankrupt leaving less supply yet more money in circulation.

John Polomny
The Real Deal