The U.S. Treasury revealed on Monday its plan to borrow $1.592 trillion from the private debt market through the end of the March quarter, following a $1.01 trillion borrowing in the September quarter. On Tuesday, prominent “SPAC king” Chamath Palihapitiya criticized the U.S. for its fiscal policies of living beyond its means.
What Happened: “To state the obvious, borrowing $1.6T every six months is unsustainable and will only go up if we are pulled into a war,” said Palihapitiya in a post on X. He questioned why the Treasury wasn’t selling long-dated maturities past 30 years.
“If you believe the terminal value of America goes beyond 30 years, then sell bonds to match and start now,” the venture capitalist said. “There is no point timing the market — we already missed our golden moment so best to get on with it.”
Palihapitiya also called out the federal agencies for the current fiscal mess. “This is beginning to become a huge ...