All you folks out there buying Treasuries hand over fist, you must be feeling lucky. Sprott Asset Management’s letter outlines the massive issuance of U.S. Treasury debt over the second half of this year.

The US government raised $705 billion worth of new debt in 2008. The debt was raised to pay for a $455 billion budget deficit and $250 billion in “supplemental appropriations” for the wars in Iraq and Afghanistan. In 2009, the US government will (and must) sell $2.041 trillion in new debt. This debt will pay for a projected budget deficit of $1.845 trillion, supplemental appropriations of $196 billion for Iraq and Afghanistan, a fund for pandemic flu response and a line of credit to the IMF. In fiscal 2009, the United States must find buyers for almost three times the debt that was issued last year.

Or to put it another way, Treasury debt outstanding will grow by about 20%. Oops. I am not feeling lucky.