Monday, January 14, 2013

Arizona Rep. Schweikert Wants Government To Look At Issuing 70-99 Year Bonds

Arizona Rep. David Schweikert (R-CD6) has an amendment today to the Hurricane Sandy relief package, requiring the federal government to look into and possibly issue 70-99 year bonds.  The amendment will be considered this afternoon in front of the House Rules Committee.

Schweikert, who has been trying to slow the pace of borrowing by the federal government, is putting forth this proposal as an additional method for the Treasury to borrow.  His amendment requires the Treasury Secretary to spend three months or less investigating whether there is "market interest" in the long-term bonds.  If so, the government would then have to start issuing them within six months (of the law taking effect).

Arizona's Politics has asked for more details from the Congressman on his proposed amendment, and will update as necessary.  The text of the proposed amendment is listed below the jump.

1 The Secretary of the Treasury shall,
2 before the end of the 90-day period beginning on the date
3 of the enactment of this section, conduct a study to deter
4 mine whether there is market interest in the issuance of
5 a class of Government bonds with durations of between
6 70 to 99 years.
7 (b) If, based on the study required under subsection
8 (a), the Secretary determines that there is sufficient mar9
ket demand for such bonds, the Secretary shall issue such
10 bonds before the end of the 180-day period beginning on
11 the date of the enactment of this section. In issuing such
12 bonds, the Secretary may determine the number of and
13 amount of such bonds issued based on the amount of in
14 terest expressed by investors and the Secretary shall en
15 sure that all such bonds are fully callable on a date to

1 be determined by the Secretary to be the most cost effec
2 tive to the Government..

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