On the last business day of 2023, the US Treasury Department announced the new level of public debt, which exceeded the $34 trillion mark for the first time in history. As of the previous day (December 28), the debt level had increased by $90 billion. Washington’s public debt now stands at about $102,000 for every …
Tag: public debt
The chances of the Global Financial System collapsing
“There is no way to avoid the collapse of a system that has expanded more than it was allowed to because of manorial credit expansion” Ludwig von Mises. History shows us that we have reached our limits. History never lies, but politicians do. In a system that has expanded more than it was allowed to …
The Challenges that the US Economy will face in 2024
US economic data show fiscal derailment as debt servicing costs rise, which will cast doubt on US geopolitical commitments to Ukraine and Israel, but also set the stage for tax hikes and deflation pressure on stock prices. This highlights that in 2024 the focus will not be on the question of rising interest rates – …
USA: Black hole in the US economy – Impossible to finance Ukraine
The “black hole” in the American defense economy risks swallowing the economy of the superpower, and the role of the “global policeman” is called into question… So far, the White House has justified its unwavering support for Ukraine by citing principles such as defending democracy and freedom — both in Ukraine and in the West. …
What does the dollarization of Argentina’s economy mean?
Argentina’s economic quagmire was the focus of the country’s November 19 presidential election. And the citizens have decided that they want… radical solutions. That’s why they nominated Javier Millay as the new president, who appeared several times with a… chainsaw. He promised to put a… “chainsaw” on public spending, in Latin America’s 3rd largest economy, …
The way of estimating the Nominal value of Public Sector Expenditures
A few days ago, the IMF published a study on the impact of inflation on public finances (“The Effects of Inflation on Public Finances“, May 5, 2023). The Study is based on the data of the member countries of the Fund from 1962 to the present day and comes to two interesting findings: 1. Regarding …
Greece Returns Rapidly to the Era of Financial Support Packages
Greece, a member-country of the Eurozone/EU with 388 billion euros in public debt and a deindustrialized economy, is in danger of paying dearly for the EU sanctions imposed on Russia. The debt of the General Government of Greece, despite being sustainable in the medium term, despite being supported by the ECB and despite the fact …
The South Eurozone on the red line due to the Explosion of Borrowing Costs
Due to rising global and mainly European inflation, interest rates are generally rising as central banks fight inflation and this is certainly not a time when investors want to increase their exposure to government bonds. Trust Economics points out that Greece’s public debt (Eurozone / EU country) remains viable despite rising borrowing costs and estimates …
Inflation Losses
Citizens of both the US and the EU have learned to live, in recent months, with the resurgence of the phenomenon of inflation that has re-emerged sharply since it was last recorded in early 2011. Adapting to the new reality should be done immediately, as the impact on disposable income is already here as well …
When Real Interest Rates Are Lower Than Growth Rates Help Reduce Public Debt
After the end of World War II, short-term interest rates in the US were less than 1%, while T-Bond bonds with 10-year maturity yielded about 2% (https://www.govinfo.gov/content/pkg/ERP-2012/pdf/ERP-2012-table73.pdf) with the US Federal Reserve, the Fed directly purchases Federal Government bonds from the US Treasury Department. At that time (1946) the US national debt reached 119% of …