US debt is exploding because of the coronavirus. Is it near a breaking point?
4 years, 8 months ago

US debt is exploding because of the coronavirus. Is it near a breaking point?

CNN  

New York CNN Business — President Donald Trump is living up to his self-given nickname “King of Debt.” On his watch, the United States has borrowed aggressively – during the good times, and now the bad times. “It doesn’t blow us up – because interest rates are so low,” said David Kelly, chief global strategist at JPMorgan Funds. “If the economy comes back too hot, then you could have inflation, higher interest rates – and that could lead to a fiscal crisis,” said JPMorgan’s Kelly. Higher taxes, less spending Still, it’s a mystery when and if the bond market will eventually balk at high US debt and demand much higher interest rates. “You don’t know where it is, but if you actually hit it, it’ll be a huge problem.” To avoid hitting it, politicians will eventually have to make difficult decisions to get the United States back towards a sustainable fiscal path – most likely less spending and higher taxes – both of which would translate to slower economic growth.

Economy Debt Interest Rates Interest Near Federal Rates United States Trillion Deficit Powell Fiscal Jpmorgan Higher Interest Rates Jpm Us Debt  coronavirus  point  breaking  debt  interest  trillion  rates  deficit  near  exploding  economy  federal  fiscal  united  states

History of this topic

America Needs to Break Its Debt Addiction — Crisis or Not
2 weeks, 3 days 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, …

Rising US debt risk bad for its own and global economy
6 months 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. …

Lots of sound and fury on US debt, but not a crisis — yet
1 year, 11 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 …

Impending economic crisis will dwarf coronavirus crisis, says credit insurer Allianz
2 years, 2 months ago

Impending economic crisis will dwarf coronavirus crisis, says credit insurer Allianz

NL Times  

The looming economic crisis will make the coronavirus crisis look like nothing, according to credit insurer Allianz Trade. Rarely have so many negative facts come together simultaneously,” Johan Geeroms, director of risk underwriting in the Benelux for Allianz, said in a press statement. And, partly due to the 10 percent increase in the minimum wage the government announced for next …

World economy: What else could go wrong before 2020 is done
4 years, 4 months ago

World economy: What else could go wrong before 2020 is done

Live Mint  

The world economy’s rebound from the depths of the coronavirus crisis is fading, setting up an uncertain finish to the year. Adding 1.4 million jobs in August was “a big step in the right direction,” said Ryan Sweet, head of monetary policy research at Moody’s Analytics. But the economy needs to maintain that kind of pace, he said, and “without …

Rising coronavirus infections threaten US economic recovery
4 years, 5 months ago

Rising coronavirus infections threaten US economic recovery

Associated Press  

BALTIMORE — Rising coronavirus infections across dozens of states are threatening the U.S. economic recovery, forcing businesses and consumers to freeze spending and keeping the unemployment rate stubbornly high. A separate report showed that more than a million Americans sought unemployment benefits last week – a sign that companies continue to cut jobs as the virus slashes through the heavily …

Can the US economy recover from coronavirus?
4 years, 8 months ago

Can the US economy recover from coronavirus?

Al Jazeera  

As the pandemic spreads in the US, the country’s economy is likely to face its worst crisis since the Great Depression. It shrank by almost 5 percent in the first quarter of this year – the biggest slide since the 2008 financial crisis. As many businesses are going bankrupt, the US has pumped more than $2 trillion into the economy …

Coronavirus relief pushing US deficits to staggering heights
4 years, 8 months ago

Coronavirus relief pushing US deficits to staggering heights

Associated Press  

WASHINGTON — Spend what it takes, Washington said as it confronted the coronavirus. CBO Director Phillip Swagel cautioned that there is “enormous uncertainty” to the projections, given the unprecedented nature of the crisis, but it’s plain the economic shock is unlike anything seen since the Great Depression. Even Washington’s few remaining spending hawks say red ink should not be a …

What to make of the US’s $2 trillion coronavirus bailout
4 years, 9 months ago

What to make of the US’s $2 trillion coronavirus bailout

Al Jazeera  

In spite of the negatives and the risks, the stimulus package represents a real political and philosophical change. On Wednesday, the United States Senate overwhelmingly approved a $2 trillion rescue bill to address the effects of the coronavirus pandemic on the economy. When he was asked who would watch where the money went, Trump said, “I’ll be the oversight.” The …

Coronavirus deals a death blow to U.S. economic expansion
4 years, 9 months ago

Coronavirus deals a death blow to U.S. economic expansion

The Hindu  

No one knows how long it will last or how much it will hurt. But the U.S. economy is either sliding into a recession for the first time since 2009 or is already in one — a sudden victim of the coronavirus outbreak. The vast changes deemed necessary to defeat the virus — people and companies no longer engaging with …

Global recession is here, according to S&P
4 years, 9 months ago

Global recession is here, according to S&P

CNN  

New York CNN Business — The coronavirus outbreak has plunged the world’s economy into a global recession, according to S&P Global. “The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” said S&P Global’s Chief Economist Paul Gruenwald. “Europe and the United States are following a similar path, as …

Coronavirus Spreads Recession Fears Around The World
4 years, 10 months ago

Coronavirus Spreads Recession Fears Around The World

NPR  

Coronavirus Spreads Recession Fears Around The World Enlarge this image toggle caption Nicolas Asfouri/AFP via Getty Images Nicolas Asfouri/AFP via Getty Images Updated at 4:10 p.m. Sponsor Message But in a global economy, even countries that have been relatively unscathed by the virus so far, such as the United States, face growing risks from the "still-evolving corrosive shock from the …

Coronavirus pushes global economy toward 1st contraction since 2009
4 years, 10 months ago

Coronavirus pushes global economy toward 1st contraction since 2009

Live Mint  

Global economic growth will sink to levels not seen in over a decade as the coronavirus outbreak hammers demand and supply, challenging central banks and governments to respond to a fast-changing situation, according to the OECD. If the situation worsens, “co-ordinated policy actions across all the major economies would be needed” for health care and economic stimulus, it said. Things …

Coronavirus shook the foundations of a global stock market powered by debt
4 years, 10 months ago

Coronavirus shook the foundations of a global stock market powered by debt

ABC  

The news over the weekend was nothing short of grim. While western governments are sheeting home the blame for last week's market carnage on the virus, a much more sinister and barely concealed problem lurks at the heart of our financial system. Last October the International Monetary Fund warned that up to $US19 trillion of corporate debt could be "at …

Coronavirus contagion spawns climate of panic on share markets
4 years, 10 months ago

Coronavirus contagion spawns climate of panic on share markets

ABC  

It's the word the world's top health authorities dare not utter. The coronavirus COVID-19, once contained in China's industrial heartland, has now spread to Europe and the Middle East, spawning a climate of panic that threatens to undermine not just financial markets, but the global economy. With so much debt issued at record-low interest rates, it has become almost impossible …

How the coronavirus could spark a severe slowdown or recession in America
4 years, 10 months ago

How the coronavirus could spark a severe slowdown or recession in America

CNN  

New York CNN Business — The longest economic expansion in American history has survived an unprecedented trade war, a catastrophic tsunami in Japan and a severe crash in oil prices. If the American consumer loses faith, and the coronavirus will be a real test of faith, then a recession is going to happen.” Mark Zandi, chief economist at Moody's Analytics …

Coronavirus crisis to hurt global economy
4 years, 10 months ago

Coronavirus crisis to hurt global economy

India Today  

With coronavirus declared a global emergency, the entire world is going to feel the impact of the massive outbreak that has claimed many lives and infected over 48,000 people in China alone, according to the latest official release. India's Minister of Health, Dr. Harshavardhan, in a press briefing said, "We had declared the novel coronavirus as a health emergency on …

The coronavirus is already hurting the world economy. Here’s why it could get really scary
4 years, 11 months ago

The coronavirus is already hurting the world economy. Here’s why it could get really scary

CNN  

London CNN Business — Nearly two decades have passed since a coronavirus known as SARS emerged in China, killing hundreds of people and sparking panic that sent a chill through the global economy. Car plants across China have been ordered to remain closed following the Lunar New Year holiday, preventing global automakers Volkswagen, Toyota, Daimler, General Motors, Renault, Honda and …

Discover Related