How the Government Borrows Eight Trillion Dollars a Year

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jul 19, 2026 · 7m · transcript

Every year, the U.S. Treasury auctions off roughly eight trillion dollars in new debt. That's more than the entire GDP of Germany. But most people have no idea how it actually works. In this episode, Lucas and Luna walk through a single auction—from the announcement to the final bid—and explain why the process matters for your mortgage rate, your 401(k), and the federal deficit. They break down the role of primary dealers, the difference between competitive and non-competitive bids, and how a tiny shift in auction demand can ripple through global markets. By the end, you'll…