Former Treasury Secretary is concerned that the US govt is close to hitting a wall where there would not be enough buyers for US govt debt. At some point, buyers won't bid on new debt unless the rates are higher to justify the risk. With nearly $40 trillion in debt, $2 trillion annual budget deficits and 25% of all tax revenue going ... it is just a matter of time before investors start demanding higher rates for the risk they are taking. The market generally assumes that if there are not enough buyers for US govt debt, the Fed will be forced to become the buyer of last resort. The only thing the Fed can do is print money (digitally) to buy the debt, which they do via the Primary Dealers. Primary Dealer banks buy the US govt debt at auction, then the Fed buys it from the Primary dealers. Thus the Fed can pretend it is not funding the govt. The Fed will claim it is just providing liquidity to the banking system. It is all BS, it is basically the Fed just printing money to fund the govt and giving a small guaranteed profit to the big banks in the middle.(Wall Street Mav)