Why US federal debt will just keep on rising

In a commentary, SMU Adjunct Professor Joergen Oerstroem Moeller explained that the reason why the US federal debt will keep on rising was an ageing population, rising healthcare costs, and an expansion of federal subsidies for health insurance, causing spending for some of the largest federal programmes to increase relative to GDP. Adjunct Prof Moeller also cited the suggestion by the US Treasury to restructure the debt to alleviate the burden on the debtor. According to press reports the US treasury expects to issue ultra-long bonds of perhaps 50 years' duration. However, he noted that the main question is how the large international holders of US treasury bonds – mainly China and Japan – will look at this.