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, proving that it’s ready to do something about it? It’s the old ‘current law’ versus ‘current policy’ ploy, one of the main devices used by policymakers to set aside disagreements and get things done, as they claim, thereby digging the country into a deepening fiscal hole. In the end, without strong action, the result will either be a fiscal collapse of the kind seen elsewhere but not in the US, or else the dreaded ‘fiscal dominance’ through which the Federal Reserve inflates away the debt burden by letting prices rip.

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History of this topic

America Needs to Break Its Debt Addiction — Crisis or Not
1 day, 21 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, …

IMF Warns of $100 Trillion Fiscal Timebomb, as Global Finance Chiefs Brace for Election Fallout
2 months ago

IMF Warns of $100 Trillion Fiscal Timebomb, as Global Finance Chiefs Brace for Election Fallout

Live Mint  

The article highlights the increasing concerns about global debt levels and the potential impact on the world economy. The IMF is set to release several reports and studies in the coming weeks, including the Fiscal Monitor, which will provide insights into public debt and the overall health of the global economy. The article also focuses on central bank decisions in …

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 …

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. …

Key GOP economic talking point destroyed by new analysis
6 months ago

Key GOP economic talking point destroyed by new analysis

Raw Story  

National debt has for decades been a go-to issue Republicans try to use to persuade voters against supporting social programs — an issue that has crept back to the forefront with new reports that annual interest payments serving the national debt now exceed what the U.S. spends on its military. According to the report, former President Donald Trump's contribution to …

CBO projects a $188 billion decrease in this year’s federal budget deficit, but debt would then grow
10 months, 2 weeks ago

CBO projects a $188 billion decrease in this year’s federal budget deficit, but debt would then grow

Associated Press  

WASHINGTON — The Congressional Budget Office said Wednesday that it expects the federal budget deficit to drop by $188 billion this fiscal year to $1.5 trillion, a short-lived dip as the annual shortfall is likely to rise over the next nine years. That’s mainly because of an agreement President Joe Biden signed last summer with Congressional Republicans that temporarily lifted …

Economic setting allows quick fiscal consolidation
10 months, 3 weeks ago

Economic setting allows quick fiscal consolidation

Live Mint  

The interim budget comes in a backdrop where the growth momentum is becoming more entrenched, macroeconomic stability is strengthening and confidence among businesses and consumers is improving. In terms of key targets, the stated objective of reducing the budget deficit to 4.5% of GDP by FY2025-26 from 5.9% this fiscal, will require accelerated pace of fiscal consolidation going ahead. However, …

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 …

The Federal Deficit Is Even Bigger Than It Looks
1 year, 2 months ago

The Federal Deficit Is Even Bigger Than It Looks

Live Mint  

When it comes to the size of the federal government’s annual deficit, appearances can be deceiving. The gap between spending and revenue for fiscal year 2023, which ended on Sept. 30, was $1.7 trillion, the Congressional Budget Office projected ahead of the official Treasury Department figures. When the Biden administration announced its plan to forgive federal student debt held by …

US public debt is projected to reach 181% of American economic activity in 30 years
1 year, 5 months ago

US public debt is projected to reach 181% of American economic activity in 30 years

Associated Press  

WASHINGTON — The Congressional Budget Office is giving the world a concerning look at the U.S. government’s ledgers: ever higher deficits, greater government spending and tax revenues that only begin to increase when existing tax cuts expire. The nonpartisan agency estimates in its latest 30-year outlook, released Wednesday, that publicly held debt will be equal to a record 181% of …

More red ink: Congressional budget agency projects bigger deficits as debt talks continue
1 year, 7 months ago

More red ink: Congressional budget agency projects bigger deficits as debt talks continue

Associated Press  

WASHINGTON — This year’s projected government budget deficit has jumped by $130 billion, due in part to a proposed change to student loan repayment plans and a series of bank rescues organized by federal regulators, the Congressional Budget Office said Friday. Revenue collections through April were lower than the agency expected, resulting in a projected budget deficit of $1.5 trillion …

US could face debt-cap crisis this summer without deal, CBO warns
1 year, 10 months ago

US could face debt-cap crisis this summer without deal, CBO warns

Al Jazeera  

The United States Congressional Budget Office on Wednesday said the Treasury Department will exhaust its ability to pay all its bills sometime between July and September unless the $31.4 trillion cap on borrowing is raised or suspended. In a report issued alongside its annual budget outlook, the non-partisan CBO cautioned that a historic federal debt default could occur before July …

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 …

Column: The U.S. economy is again being held hostage to our ridiculous federal debt ceiling
1 year, 11 months ago

Column: The U.S. economy is again being held hostage to our ridiculous federal debt ceiling

LA Times  

Rep. Kevin McCarthy gave away much of his leverage to right-wing Republican House members to become speaker. Sadly, the answer is simple: Infantile poseurs in the House Republican majority are threatening to block an increase in the federal debt ceiling. That’s the case now, when members of the House Republican majority, who have threatened to block an increase in the …

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 …

Biden administration forecasts $1.03T deficit, down $400B
2 years, 4 months ago

Biden administration forecasts $1.03T deficit, down $400B

Associated Press  

WASHINGTON — The Biden administration is forecasting that this year’s budget deficit will be nearly $400 billion lower than it estimated back in March, due in part to stronger than expected revenues, reduced spending, and an economy that has recovered all of the jobs lost during the multi-year pandemic. The administration’s Mid-Session Review said much of the improvement in the …

CBO expects federal debt to double over next 30 years
3 years, 9 months ago

CBO expects federal debt to double over next 30 years

Associated Press  

The Congressional Budget Office estimated Thursday that persistent budget deficits will cause the federal debt to double in size over the next 30 years. The estimates do not include President Joe Biden’s proposed $1.9 trillion coronavirus relief package, which would further add to the deficit in hopes of speeding faster growth and hiring. Excluding Biden’s aid plan, the annual budget …

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 budget deficit hits all-time high of $864 billion in June
4 years, 5 months ago

US budget deficit hits all-time high of $864 billion in June

Associated Press  

WASHINGTON — The federal government incurred the biggest monthly budget deficit in history in June as spending on programs to combat the coronavirus recession exploded while millions of job losses cut into tax revenues. For the first nine months of this budget year, which began Oct. 1, the deficit totals $2.74 trillion, also a record for that period. That total …

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