Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that will climb back to normal.

The government faces payment shock similar to what sent overstretched homeowners into mortgage defaults.

The problem is that record government deficits have arrived at the same time as explosive spending on Medicare and Social Security.

Global investors are shifting money into fast-growing countries like Brazil and China.

“Inflation, higher interest rates, and rollover risk should be the primary concerns. Clever debt management strategy can’t substitute for prudent fiscal policy.” Treasury Borrowing Advisory Committee.