Excessive dollar debt major risk to economic security and recovery
11 months, 2 weeks ago

Excessive dollar debt major risk to economic security and recovery

China Daily  

Illustrated by Shi Yu / China Daily The total debt of the US federal government exceeded $34 trillion for the first time as of Jan 2, only three and a half months after it topped $33 trillion, and five years earlier than the Congressional Budget Office had predicted. In order to fund its ever-growing fiscal deficit, the US government has long issued treasury bonds, and because of low borrowing costs, the "debt snowball" has become bigger and bigger. At the same time, in order to curb inflation, the US Federal Reserve has raised interest rates time and again, further increasing the debt repayment costs for the US government. If investors reduce their holdings of US treasury bonds, the dollar will face depreciation pressures, which will further aggravate the US government's debt repayment burden and financing difficulties.

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History of this topic

America Needs to Break Its Debt Addiction — Crisis or Not
1 day, 19 hours ago

America Needs to Break Its Debt Addiction — Crisis or Not

Live Mint  

-- This is the first part of a series of Bloomberg Opinion columns exploring the risks related to the US’s rapidly expanding debt and budget deficit. There are many answers, not least of which is probably the idea that the Fed, which has already crossed the Rubicon and engaged in quantitative easing through its purchases of Treasury and related securities, …

How Trump, Starmer and Macron can avoid a debt crunch
1 month ago

How Trump, Starmer and Macron can avoid a debt crunch

Live Mint  

America’s gross national debt is $36trn, or $107,000 per person. In rich countries, government bonds are as close as they can get to a “risk free" asset, making them less likely than foreign ones to stage a “buyers’ strike". Although it might seem that rich countries would balk at such measures, a paper in 2015 by Ms Reinhart found that …

Key US economic data raises global concerns
4 months, 1 week ago

Key US economic data raises global concerns

China Daily  

An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. "The high debt level can cause significant problems if economic conditions worsen," Ke Jing, associate research professor at the Shanghai Academy of Social Sciences' Institute of International Relations, said. The US abuse of financial sanctions due to dollar hegemony and the high national debt …

Key US economic data raises global concerns
4 months, 1 week ago

Key US economic data raises global concerns

China Daily  

An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. "The high debt level can cause significant problems if economic conditions worsen," Ke Jing, associate research professor at the Shanghai Academy of Social Sciences' Institute of International Relations, said. The US abuse of financial sanctions due to dollar hegemony and the high national debt …

US national debt surpasses 35 trillion USD for first time
4 months, 3 weeks ago

US national debt surpasses 35 trillion USD for first time

China Daily  

Photo taken on July 29, 2024 shows the US Treasury Building in Washington, D.C., the United States. WASHINGTON - The US federal government's total public debt has surpassed 35 trillion US dollars for the first time, as recorded at the end of last week, according to data released by the Treasury Department Monday. The total public debt outstanding climbed to …

Rising US debt risk bad for its own and global economy
5 months, 3 weeks ago

Rising US debt risk bad for its own and global economy

China Daily  

A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, Hainan province. The International Monetary Fund recently warned that the excessive fiscal deficit and debt scale of the United States are posing a growing risk to its own and the global economy, urging the US to solve this long-standing problem as soon as possible. …

China seen continuing to cut US debt holdings
7 months, 1 week ago

China seen continuing to cut US debt holdings

China Daily  

A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, Hainan province. Bai Xue, vice-director of the research development department at Golden Credit Rating International, said China's holdings of US Treasury bonds have decreased by 42 percent compared to the peak level of $1.32 trillion in November 2013, and the decrease has sped up …

As US 'debt bomb' spirals towards $35 trillion, hedge fund boss warns politicians are spending 'at the expense of future generations'
8 months, 3 weeks ago

As US 'debt bomb' spirals towards $35 trillion, hedge fund boss warns politicians are spending 'at the expense of future generations'

Daily Mail  

debt is currently above $34.6 trillion, according to official data Hedge fund billionaire Ken Griffin has warned that the 'surging' US national debt is a 'growing concern that cannot be overlooked.' It comes after fellow hedge fund manager Paul Tudor Jones warned earlier this year that a 'debt bomb' is on the verge of exploding in the US - and …

China may pare its US debt holdings
9 months ago

China may pare its US debt holdings

China Daily  

A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. China may continue to reduce the share of US debt in its overall foreign exchange reserves amid its ramped-up efforts to diversify foreign asset portfolios, experts said on Wednesday. In the short term, factors like changes in monetary …

Global debt surges to record high as borrowing costs bite
10 months ago

Global debt surges to record high as borrowing costs bite

The Telegraph  

Global debt has surged to a record high of $313 trillion, as higher interest rates drive up borrowing costs for companies and governments worldwide. Jan Friederich at Fitch Ratings said higher borrowing costs mark “a quite substantial change from the environment of. Speaking at the launch of the IIF’s Global Debt Monitor he said that “average interest expenditure relative to …

The threat of US debt inflated away haunts the country’s fiscal outlook
10 months, 1 week ago

The threat of US debt inflated away haunts the country’s fiscal outlook

Live Mint  

One of the few things US Democrats and Republicans appear to agree on is that fiscal responsibility is for losers. The projection assumes that caps on discretionary spending introduced last year will be maintained and that the Trump administration’s 2017 tax cuts will expire in 2025 as the law promised. Didn’t US Congress pass the Fiscal Responsibility Act last year, …

Legendary investor Paul Tudor Jones says a 'debt bomb' set to go off in US - economy appears strong but is on 'steroids' masking major problems
10 months, 2 weeks ago

Legendary investor Paul Tudor Jones says a 'debt bomb' set to go off in US - economy appears strong but is on 'steroids' masking major problems

Daily Mail  

The billionaire investor said while the economy appears strong, it is on 'steroids' Legendary hedge fund manager Paul Tudor Jones has said that a 'debt bomb' is on the verge of exploding in the US - due to 'unsustainable' government borrowing. The billionaire investor said that the economy appears strong - but under the surface it is actually on 'steroids' …

Global debt surges to record $307 trillion amid borrowing binge
1 year, 3 months ago

Global debt surges to record $307 trillion amid borrowing binge

The Telegraph  

Global debt has surged to a fresh record of $307 trillion as governments and financial services companies fuel a jump in borrowing. Borrowers added $10 trillion to the debt mountain in the first half of 2023, according to the Institute of International Finance. It comes as US government debt hit a record $33 trillion this month amid heavy borrowing and …

Familiar source of global financial problems
1 year, 3 months ago

Familiar source of global financial problems

China Daily  

A worker counts Chinese currency renminbi at a bank in Linyi, East China's Shandong province. To ease the inflationary pressure, the Federal Reserve began a radical interest rate hike cycle in March 2022, which caused serious negative spillover effects on the world economy. For a long time, the US has used its dollar hegemony in the international monetary system to …

White House warns of recession as debt limit fight drags on
1 year, 7 months ago

White House warns of recession as debt limit fight drags on

India Today  

White House economists on Wednesday warned of “severe damage” to the US economy in the event of a debt default, warning that a prolonged default could cause 8.3 million job losses and the stock market to tumble 45%. The White House analysis warned that a protracted default could cost more than 8 million jobs in the third quarter of 2023, …

Lots of sound and fury on US debt, but not a crisis — yet
1 year, 10 months ago

Lots of sound and fury on US debt, but not a crisis — yet

Associated Press  

WASHINGTON — For all the sound and fury about raising the nation’s debt limit, most economists say federal borrowing is not at a crisis point. The political jousting masks contrasting realities: Today’s $31.4 trillion national debt does not appear to be a weight on the U.S. economy, but the debt’s path in the decades to come might put at risk …

US starts fiscal year with record $31 trillion in debt
2 years, 2 months ago

US starts fiscal year with record $31 trillion in debt

Associated Press  

WASHINGTON — The nation’s gross national debt has surpassed $31 trillion, according to a U.S. Treasury report released Tuesday that logs America’s daily finances. Edging closer to the statutory ceiling of roughly $31.4 trillion — an artificial cap Congress placed on the U.S. government’s ability to borrow — the debt numbers hit an already tenuous economy facing high inflation, rising …

US monetary policy harms global economy
2 years, 8 months ago

US monetary policy harms global economy

China Daily  

US Federal Reserve in Washington DC. Second, the Fed's interest rate hike is likely to trigger a financial crisis in emerging economies, as it will lead to the devaluation of emerging economies' currencies, thereby increasing their external debt burden. Third, interest rate hikes by the Fed will exacerbate debt risks in emerging economies whose foreign debt repayment peaks in 2022 …

In a first, America's national debt crosses $30 trillion. Here's why it matters
2 years, 10 months ago

In a first, America's national debt crosses $30 trillion. Here's why it matters

Hindustan Times  

In a new milestone, America's national debt has reached a record high of over $30 trillion, according to data published on Tuesday by the treasury department under the US government. Financial experts cited by American media outlets like CNN and Axios remain divided over “how much debt is too much” and regarding how big of a problem this really is …

US debt projected to balloon to more than double GDP by 2051
3 years, 9 months ago

US debt projected to balloon to more than double GDP by 2051

Al Jazeera  

The non-partisan Congressional Budget Office warned that by 2051, the United States’ debt will skyrocket to 202 percent of its gross domestic product, up from 102 percent this year. The U.S. federal debt will grow to more than double the size of the economy in three decades, increasing the risk of a fiscal crisis even though dangers appear low in …

US debt hasn’t been this high since World War II. That’s ok…for now
4 years, 2 months ago

US debt hasn’t been this high since World War II. That’s ok…for now

CNN  

The amount of money that the United States owes investors has hit record levels in more than a few ways, based on newnumbers reported Friday by the US Treasury. Both the annual deficit and total debt accumulated over the years has topped levels not seen since World War II. Having topped $21 trillion, the country’s total debt owed to investors …

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