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 the near term, the Congressional Budget Office said. Debt will be equivalent to 202% of gross domestic product by 2051 from 102% this year, the nonpartisan arm of the legislature said Thursday in its long-term budget outlook. “Nonetheless, the much higher debt over time would raise the risk of a fiscal crisis in the years ahead.” Federal Reserve Chairman Jerome Powell said Thursday that the U.S. economy still has a long way to go before the central bank considers tightening, and underscored that the low-inflation world of the past several decades is unlikely to change.

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History of this topic

Trump just handed Democrats an 'enticing' policy offer — and they should take it: analyst
4 days, 16 hours ago

Trump just handed Democrats an 'enticing' policy offer — and they should take it: analyst

Raw Story  

President-elect Donald Trump is demanding as part of the spending package the GOP is trying to force through that the debt ceiling be extended — or possibly abolished altogether, which Democrats have broadly rejected as a ploy to allow new tax breaks for billionaires. But not so fast, columnist Heather Long wrote for The Washington Post — Trump's proposal is …

The rising price of paying the national debt is a risk for Trump’s promises on growth and inflation
1 month ago

The rising price of paying the national debt is a risk for Trump’s promises on growth and inflation

Associated Press  

WASHINGTON — Donald Trump has big plans for the economy — and a big debt problem that will be a hurdle to delivering on them. Trump has bold ideas on tax cuts, tariffs and other programs, but high interest rates and the price of repaying the federal government’s existing debt could limit what he’s able to do. In his statement …

Americans’ debt is growing — but so are incomes
1 month, 1 week ago

Americans’ debt is growing — but so are incomes

CNN  

CNN — Americans are continuing to pile on debt at record levels — but for many households, those IOUs are completely manageable, according to new data released Wednesday. US household debt moved up to a fresh record total of $17.94 trillion as of September 30, according to the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt …

Inflation, debt, default: Donald Trump’s second term poses massive economic challenges
1 month, 2 weeks ago

Inflation, debt, default: Donald Trump’s second term poses massive economic challenges

Live Mint  

As Donald Trump begins his second term, several key challenges lie ahead. The growing debt burden has already affected investor confidence, sending U.S. government bond yields higher as market participants worry about the long-term sustainability of U.S. fiscal policy. Previous debt ceiling standoffs have pushed the U.S. close to default, and there is concern that the political divide in Washington …

The alarming increase in global debt
3 months ago

The alarming increase in global debt

New Indian Express  

Global debt has reached around $313 trillion or 330 percent of world GDP, up from around $210 trillion a decade ago. Since 2000, China’s total debt has nearly tripled to around 288 percent of GDP. As a percentage of total output, government debt in Japan, the US and the UK has reached 252 percent, 127 percent and 106 percent, representing …

Stick to fiscal deficit as the norm for fiscal prudence
3 months, 2 weeks ago

Stick to fiscal deficit as the norm for fiscal prudence

The Hindu  

Government expenditures exceeding revenue by a high margin can lead to a difficult situation. In the 1980s, rising fiscal deficit accompanied by rising government debt led to a difficult balance of payments situation and a high ratio of interest payment to revenue receipts. With these levels of fiscal deficit in two consecutive years, the Centre’s debt-GDP ratio is estimated at …

Donald Trump and Kamala Harris go quiet on America's biggest economic issue
3 months, 3 weeks ago

Donald Trump and Kamala Harris go quiet on America's biggest economic issue

ABC  

Guitar virtuoso and social satirist the late Frank Zappa once labelled American politics "the entertainment division of the military industrial complex". During Greece's financial crisis, its debt to GDP level was flashing red at 140 per cent. Its debt to GDP level was flashing red at 140 per cent, sparking what many believed would be the onset of an economic …

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 …

Central government debt set to double to ₹185 trillion by FY25 amid fiscal challenges and policy shifts
4 months, 3 weeks ago

Central government debt set to double to ₹185 trillion by FY25 amid fiscal challenges and policy shifts

Live Mint  

India's central government debt is projected to escalate to ₹185.27 trillion, or 56.8% of GDP, by the financial year 2024-25, up from ₹93.26 trillion, or 49.3% of GDP, in 2018-19, the minister of state for finance Pankaj Chaudhary said in a written reply to the Lok Sabha on Monday. This projected increase in debt follows a significant rise over the …

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 …

Congressional Budget Office raises this year’s federal budget deficit projection by $400 billion
6 months ago

Congressional Budget Office raises this year’s federal budget deficit projection by $400 billion

Associated Press  

WASHINGTON — The Congressional Budget Office said Tuesday that it projects this year’s federal budget deficit to be $400 billion higher, a 27% increase compared to its original estimate released in February. White House spokeswoman Karine Jean-Pierre, said in a statement that the report “is further evidence of the need for Congress to pass President Biden’s Budget to reduce the …

The UN says global public debt hit a record $97 trillion in 2023. Developing countries are hard hit
6 months, 2 weeks ago

The UN says global public debt hit a record $97 trillion in 2023. Developing countries are hard hit

Associated Press  

GENEVA — Global public debt rose to a record $97 trillion last year, the United Nations reported Tuesday, with developing countries owing roughly one-third of that — crimping their ability to pay for basic government services like health care, education and climate action. In 2023, public debt in developing countries hit $29 trillion, or about 30% of the total worldwide …

Keep cautious eye on risk of safe-haven funds
7 months, 3 weeks ago

Keep cautious eye on risk of safe-haven funds

China Daily  

CAI MENG/CHINA DAILY The latest data released by the US government shows that the GDP of the United States for the first quarter of the year increased at an annualized rate of 1.6 percent, lower than the expected 2.4 percent and significantly slower than the 3.4 percent growth rate in the fourth quarter of last year. In the first quarter, …

Households’ debt surged to fresh high by December 2023: report
8 months, 2 weeks ago

Households’ debt surged to fresh high by December 2023: report

The Hindu  

In what may be construed as a sign of rising financial distress, India’s household debt levels are reckoned to have touched an all-time high of 40% of Gross Domestic Product by December 2023, while net financial savings had likely dropped to their lowest level at around 5% of GDP, as per a research report from leading financial services firm Motilal …

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 …

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' …

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 …

US national debt hits record $34 trillion as Congress gears up for funding fight
11 months, 3 weeks ago

US national debt hits record $34 trillion as Congress gears up for funding fight

Associated Press  

WASHINGTON — The federal government’s gross national debt has surpassed $34 trillion, a record high that foreshadows the coming political and economic challenges to improve America’s balance sheet in the coming years. Government dysfunction, such as another debt limit showdown, could also be a financial risk if investors worry about lawmakers’ willingness to repay the U.S. debt. Sohn said a …

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 …

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 …

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 …

US on the debt ledge, will it fall?
1 year, 7 months ago

US on the debt ledge, will it fall?

Firstpost  

June 1, the earliest date by which the US could default is just a little over a week away. Meanwhile, “extraordinary measures” have been adopted by the US Treasury Department to maintain cash flow till the “hard deadline”, but without an agreement in Congress to raise the limit Treasury Secretary Janet Yellen has warned that the US may not meet …

'Productive' Talks No Deal Yet: What Is US Debt Ceiling, Over Which US Lawmakers Have Locked Horns?
1 year, 7 months ago

'Productive' Talks No Deal Yet: What Is US Debt Ceiling, Over Which US Lawmakers Have Locked Horns?

ABP News  

US President Joe Biden and Republican House Speaker Kevin McCarthy have called their latest round of negotiations on the debt ceiling “productive”, but they still haven’t reached a deal to avoid looming debt default. The US Treasury departments websites say that the debt limit is the total amount of money that the United States government is authorised to borrow to …

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 debt-ceiling: Biden, McCarthy aim to break standoff as default crisis looms
1 year, 7 months ago

US debt-ceiling: Biden, McCarthy aim to break standoff as default crisis looms

Live Mint  

President Joe Biden and top Republicans and Democrats from Congress are set to sit down this week to try to resolve a three-month standoff over the $31.4 trillion US debt ceiling and avoid a crippling default before the end of May. Biden is due to meet on Tuesday at the White House with McCarthy for the first time since Feb. …

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, …

Republican debt cap plan to cut US jobs, slow growth: Economist
1 year, 7 months ago

Republican debt cap plan to cut US jobs, slow growth: Economist

Al Jazeera  

A Republican plan to cut federal spending in exchange for lifting the United States government’s debt ceiling would lower employment, slow economic growth and “meaningfully increase” the likelihood of a recession, Moody’s Analytics’ chief economist told a Senate committee on Thursday. Mark Zandi told the Senate Budget Committee that US GDP growth would be 1.61 percent in 2024 if the …

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

Associated Press  

WASHINGTON — White House economists on Wednesday warned of “severe damage” to the U.S. 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 …

US economy grew at weak 1.1% rate in Q1 in sign of slowdown
1 year, 7 months ago

US economy grew at weak 1.1% rate in Q1 in sign of slowdown

Associated Press  

WASHINGTON — The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced their inventories. The economy’s slowdown reflects the impact of the Federal Reserve’s aggressive drive to tame inflation, with nine interest rate hikes over the past year. “We continue to expect the …

House Republicans pass U.S. debt bill, push Biden on spending
1 year, 7 months ago

House Republicans pass U.S. debt bill, push Biden on spending

LA Times  

Speaker of the House Kevin McCarthy arrives for a closed-door meeting with fellow Republicans as he pushes his debt ceiling package on Wednesday. House Republicans narrowly passed sweeping legislation Wednesday that would raise the government’s legal debt ceiling by $1.5 trillion in exchange for steep spending restrictions, a tactical victory for Speaker Kevin McCarthy as he challenges President Biden to …

Biden says GOP plans would drive US debt up by $3 trillion
1 year, 10 months ago

Biden says GOP plans would drive US debt up by $3 trillion

Associated Press  

LANHAM, Maryland — President Joe Biden on Wednesday said Republican policies would blow up the national debt by $3 trillion over 10 years, taking direct aim at GOP lawmakers who say their priority is a balancing the federal budget. The president said his budget, which is set to be released March 9, would protect Social Security and Medicare from cuts, …

Views of U.S. economy improve but remain low; debt ceiling uncertainty looms — CBS News poll
1 year, 10 months ago

Views of U.S. economy improve but remain low; debt ceiling uncertainty looms — CBS News poll

CBS News  

Views of the nation's economy have ticked back up — though they remain a long way from good. In another sign of uncertainty as debt ceiling talks continue, Americans' views on the debt limit are tied to how likely they think an economic downturn is if it isn't raised. The debt ceiling Views on raising the debt ceiling start off …

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

Lots of sound and fury on US debt limit, but not at a crisis point yet

Firstpost  

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 … at least not yet. “Spending cuts and tax hikes would kill off growth in a year when we’re more likely than not to go into recession,” Greene said. “It’s not clear that it would put …

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 …

Yellen tells Congress US expected to hit debt limit Thursday
1 year, 11 months ago

Yellen tells Congress US expected to hit debt limit Thursday

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit on Thursday and will then resort to “extraordinary measures” to avoid default. “We’ve got to change the way we are spending money.” McCarthy has floated the kind of budget-cap deal that was engineered in the last go around on the …

Yellen warns Congress that U.S. is expected to hit debt limit Thursday
1 year, 11 months ago

Yellen warns Congress that U.S. is expected to hit debt limit Thursday

LA Times  

Treasury Secretary Janet L. Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit Thursday and will then resort to “extraordinary measures” to avoid default. “We’ve got to change the way we are spending money.” McCarthy has floated the kind of budget-cap deal that was engineered in the last go-around on the debt ceiling during …

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 …

Report: Federal debt lower in 2022; still poised to climb
2 years, 4 months ago

Report: Federal debt lower in 2022; still poised to climb

Associated Press  

The Congressional Budget Office said Wednesday that the end of pandemic-era spending, fast economic growth and higher tax revenues have caused the federal debt this year to be lower than forecast. GOP lawmakers have also stressed the importance of containing federal debt, yet annual deficits worsened during the tenure of former President Donald Trump. This year’s budget deficit is equal …

Congressional Budget Office says inflation to last into 2023
2 years, 6 months ago

Congressional Budget Office says inflation to last into 2023

Associated Press  

WASHINGTON — The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. With Biden’s $3.5 trillion economic and social spending bill, known as “Build Back Better,” now dead in a split Senate, Democrats face pressure to pass legislation ahead of …

ADB pegs 2022-23 GDP growth at 7.5%
2 years, 8 months ago

ADB pegs 2022-23 GDP growth at 7.5%

The Hindu  

The Asian Development Bank forecasts India’s GDP growth to moderate to 7.5% in 2022-23 from an estimated 8.9% in 2021-22, but will pick up to reach 8% in 2023-2024. Food prices In its Asian Development Outlook report released on Wednesday the bank stated that food prices were expected to rise in tandem with increasing commodity prices Higher public capital spending …

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 …

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