US Public Debt Surpasses Record $34 Trillion

 

Daily Mail: US national debt hits $34 TRILLION for the first time in history, as federal funding deadlines loom - and it could affect your finances 

* Federal debt soared to $34 trillion on December 29, according to Treasury data 

* A higher debt load could put upward pressure on inflation, experts warn 

* Lawmakers face deadlines for permanent budgets in January and February 

US national debt has reached a record high - hitting $34 trillion for the first time in history. 

Data published by the Treasury Department Tuesday showed that outstanding federal borrowing soared to $34.001 trillion on December 29, just weeks ahead of Congress deadlines for new federal funding plans. 

The staggering figure, which is a major point of contention between Republicans and Democrats, is equal to $101,233 in federal debt for every person in America, according to the Peter G. Peterson Foundation.  

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WNU Editor: Here is an easy prediction. This is not going to end well. 

US Public Debt Surpasses Record $34 Trillion 

US public debt tops $34 trln as Congress heads into funding fight -- Reuters  

US national debt hits record $34 trillion -- CNN 

U.S. national debt surpasses $34 trillion -- UPI 

US national debt surpasses $34T for first time -- The Hill  

US national debt tops $34T for first time in history -- FOX News

US Credit Rating Downgraded To ‘Negative’ By Moody's

Reuters: Moody's turns negative on US credit rating, draws Washington ire 

NEW YORK/WASHINGTON (Reuters) - Moody's on Friday lowered its outlook on the U.S. credit rating to "negative" from "stable" citing large fiscal deficits and a decline in debt affordability, a move that drew immediate criticism from President Joe Biden's administration. 

The move follows a rating downgrade of the sovereign by another ratings agency, Fitch, this year, which came after months of political brinkmanship around the U.S. debt ceiling. Federal spending and political polarization have been a rising concern for investors, contributing to a selloff that took U.S. government bond prices to their lowest levels in 16 years.  

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 US Credit Rating Downgraded To ‘Negative’ By Moody's  

Moody's Changes U.S. Credit Outlook to 'Negative' -- DNYUZ/New York Times  

US Credit-Rating Outlook Changed to Negative by Moody's -- Bloomberg  

Moody's Lowers US Credit Outlook, Though Keeps Triple-A Rating -- AP  

Credit agency Moody’s cuts outlook on US government to negative -- The Guardian  

Moody’s sends a warning to America: Your last AAA credit rating is at risk -- CNN  

US credit rating downgraded to ‘negative’ -- RT

U.S. Federal Interest Payments Will Exceed The Pentagon Budget By 2025

CNN: US debt: Federal interest payments could soon exceed military spending 

New York CNN Business — The Federal Reserve’s war on inflation isn’t just painful for home buyers and people with credit card debt. Uncle Sam is getting squeezed by higher borrowing costs, too. 

The cost to finance America’s growing mountain of debt is rising rapidly as the Fed scrambles to put out the inflation fire by raising interest rates and shrinking its nearly $9 trillion balance sheet. 

During fiscal 2022 alone, the federal government made $475 billion in net interest payments, up from $352 billion the prior year, according to the US Treasury Department. For context, that’s more than the government spent on veterans’ benefits and transportation – combined. And it’s nearly as much as the $677 billion spent on education.  

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Update #1: The Government Is Set To Spend More On Debt Payments Than The Entire Defense Budget (Daily Caller) 

Update #2: Federal interest payments soar, soon will exceed cost of entire defense budget (Convention of States)  

WNU Editor: If current trends continue, one can easily see interest payments becoming the biggest expense in the US Federal budget by 2030.

Visualizing Global Government Debt

Click on Image to Enlarge  

Zero Hedge: Visualizing The Snowball Of Government Debt 

As we approach the second half of 2021, many countries around the world are beginning to relax their COVID-19 restrictions. 

And while this signals a return to normalcy for much of the global economy, Visual Capitalist's Marcus Lu notes that there’s one subject that’s likely to remain controversial: government debt. 

To see how each country is faring in the aftermath of an unprecedented global borrowing spree, this graphic from HowMuch.net visualizes debt-to-GDP ratios using April 2021 data from the International Monetary Fund (IMF).  

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WNU Editor: For many of the major economies in the world their country's interest rates are near zero. Heaven help all of us if the central banks fail in keeping these rates at these low levels.

Headed for a Collapsing Debt Bubble

Our Finite World: Headed for a Collapsing Debt Bubble 

A $1.9 trillion stimulus package was recently signed into law in the United States. Can such a stimulus bill, plus packages passed in other countries, really pull the world economy out of the downturn it has been in 2020? I don’t think so. 

The economy runs on energy, far more than it operates on growing debt. Our energy problems don’t appear to be fixable in the near term, such as six months or a year. Instead, the economy seems to be headed for a collapse of its debt bubble. Eventually, we may see a reset of the world financial system leading to fewer interchangeable currencies, far less international trade and falling production of goods and services. Some governments may collapse. 

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WNU editor: A long but sobering essay on the role of US energy production, the benefits it gives to the US economy, and the economic consequences if this industry declines.