This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at 100 year bonds. Mike, typically when people, businesses, or governments bon-ow money, the maximum length of the loan is 30 years. But I understand there is some talk of the government increasing this to 100 years. Why is this being discussed now, and does it make sense?
- Reason being discussed now – record low interest rates
- Argument is to take advantage of this
- Two ways to do – borrow more, and b01row for longer period of time
- Of course, federal government has been borrowing more due to rising deficit
- But advocates of 100 year bonds say locking in interest rates for this period could save big bucks if rates eventually rise in the future
- Realists say government will continue borrowing, so why not at least try to lower the costs
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.