US /ˌri:'faɪnæns/
・UK /ˌri:ˈfaɪnæns/
I think building the middle class, investing in the middle class, making college debt-free so more young people can get their education, helping people refinance their debt from college at a lower rate, those are the kinds of things that will really boost the economy.
REFINANCE THEIR TAX --
Because they have to refinance all of their debt.
So you must refinance it.
So when their yields, when their government bonds in the United States will expire, instead of buying the exact same bonds and refinance them over there, they will simply take that money, bring it to Japan, and invest in Japanese bonds.
But in this case, if Japanese corporations will find it much more attractive to take that and buy treasury bills in Japan instead of the United States because they offer the exact same rate of return or very close to that and risks are much lower with Japan, they will not refinance them or they will not buy them again, which means that now the United States will have to find new investors for those treasury bills.
And if you are wondering, why would we refinance so much debt?
And this year alone, the government has to refinance probably around 10 trillion dollars of government bonds and next year we have to refinance another 12 trillion dollars.
How are you going to refinance your debt?
Because when your debt is expiring, now you have to refinance it, which means that you have to create new debt and sell it to new investors.
They will skyrocket, costing the government a lot of money to refinance its debt that it does consistently.
They will skyrocket, costing the government a lot of money to refinance its debt that it does consistently.
This year and next year together, the government will have to refinance 20 trillion dollars of debt.
And it will refinance it at the current interest rates.
But because that debt is going to expire a certain time in the future and you have no money to pay it back, what you have to do, you are going to refinance it.
And you will refinance it at a new interest rate, which is the current interest rate in the market, which is how the United States got into this problem in the first place.
In fact, sometime in the future, when interest rates will be dropped, you can refinance your loan at a much lower interest rate.
In fact, sometime in the future, when interest rates will be dropped, you can refinance your loan at a much lower interest rate.
You will refinance that debt.
But interest rates now are higher than they were back in the days when you borrowed the money, so you will have to refinance it at a much higher interest rate.