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Debt Burden and Refinancing in the Economy
High levels of public debt can have negative consequences on an economy, such as slower growth, embedded inflation, wealth and income distribution issues. The US must avoid these effects. Debt needs to be refinanced periodically, and with the global average debt amount at 350 trillion and an average maturity of five years, approximately 70 trillion in debt needs to be refinanced annually worldwide. Global financial markets are saturated with the need to refinance existing debt, making it crucial to have sufficient liquidity and balance sheet space.