Main Topic: Americans' credit card debt reaches over $1 trillion for the first time ever.
Key Points:
1. Total credit card indebtedness rose by $45 billion in the April-through-June period, reaching $1.03 trillion.
2. Credit card delinquency rates have increased, with 30 or more days late climbing to 7.2% in Q2.
3. The rise in credit card balances reflects inflationary pressures and higher levels of consumption, while household income remains below pre-pandemic levels.
Britain's public debt load has risen by more than 40% to nearly £2.6 trillion ($3.3 trillion) since the pandemic began, causing concerns about the country's ability to service its liabilities and reigniting questions about its credit rating. The heavy reliance on index-linked bonds and the threat of inflation could further worsen the situation, potentially leading to a negative economic spiral that could last for years. The UK's debt burden is already higher than its entire annual economic output, and without action, it could balloon to three times the GDP over the next half century.
Around $1.2 trillion of debt on US commercial real estate is considered "potentially troubled" due to high leverage and falling property values, with office spaces being the most affected and accounting for over half of the at-risk debt that will mature by the end of 2025.
The United States has the highest debt in the world, and countries like France, Singapore, Brazil, Hong Kong, and India are among the top holders of U.S. debt.
Large regional banks in the United States may need to issue around $70 billion in fresh debt as part of a proposed rule aimed at strengthening the sector's resilience following the failure of three lenders earlier this year.
The U.S. federal deficit is projected to double this year to around $2 trillion, largely due to higher interest rates, lower tax revenue, and increased Social Security and Medicare costs.
Despite President Biden's claims of cutting the federal budget deficit by $1.7 trillion, in reality, the deficit is projected to hit $2 trillion this year, with government spending remaining high and the reduction in the deficit primarily due to the expiration of COVID-19 emergency spending.
Approximately $7.6 trillion of outstanding U.S. government debt is set to mature within the next year, raising concerns about how the Treasury will finance its borrowing needs going forward, although the Treasury Borrowing Advisory Committee believes that Treasury can continue to issue Treasury bills given the current levels of demand, according to a letter released last month; the committee also recommended that Treasury take steps to normalize the level of T-bill issuance over time.
The United States has a net wealth of $136.8 trillion, with the private sector holding all the wealth while the public sector runs a deficit due to federal debt, and pro-growth policies are essential for economic health.
The US is facing a potential financial crisis as the national debt reaches $33 trillion and the federal deficit is expected to double, posing a threat to President Biden's government and potential consequences for American citizens.
The US federal debt has reached $32.94 trillion, prompting concerns from JPMorgan Chase CEO Jamie Dimon about the impact on households, while Congress faces pressure to pass a new budget before potential government shutdown at the end of September.
US Treasury Secretary Janet Yellen believes that despite the national debt nearing $33 trillion, the federal government's debt burden remains under control due to the net interest as a share of GDP remaining at a reasonable level. However, critics warn of the potential risks of a growing debt and credit bubble. Additionally, Yellen hopes for a quick resolution to the United Auto Workers' strike, stating that the economy remains strong overall.
Global debt reached a record $307 trillion in Q2 2023, driven by the United States and Japan, despite rising interest rates hampering bank credit, according to the Institute of International Finance (IIF).
Wall Street feels defensive as the US national debt surpasses $33 trillion and a government shutdown looms, potentially worsening the economy's current issues and increasing the likelihood of a recession, with the shutdown estimated to cost the US economy $6 billion per week and shave GDP growth by 0.1 percentage points in the fourth quarter of 2023.
US credit card debt reached $1 trillion for the first time, but experts argue that it is not a cause for concern as factors like income, wealth, spending growth, credit card utilization, and delinquency rates indicate that consumers are in good financial shape unless the US enters a severe recession.
The federal debt, which has reached over $33 trillion and is increasing, is predicted to cause a crisis in the near future, leading to high inflation, lower profits for companies, and potential stock market problems, highlighting the importance of diversifying investments.
France's debt has skyrocketed from €1 trillion in 2003 to €3 trillion in 2023, but the government aims to reduce it through the 2024 budget plan; the debt is primarily owed to foreign entities and reducing it would require significant public spending cuts.
The cost of servicing the US debt is expected to reach a new record by 2025, as higher interest rates increase borrowing costs and push interest payments on the debt to $10.6 trillion over the next decade.
The United States government has added a staggering $275 billion in debt in just 24 hours, contributing to the country's already significant $33 trillion national debt, sparking concerns about its ability to pay essential services and outstanding bills with foreign entities, which could potentially benefit Bitcoin in the long run as it tends to perform well when global liquidity increases.
The US government's debt has increased by over half a trillion dollars in just three weeks, leading to warnings from Senator Cynthia Lummis and billionaire Ray Dalio about the potential consequences for future generations.
The cost of financing America's debt is rising as bond yields increase, potentially crowding out other spending and surpassing the amount spent on defense by 2028, according to estimates released by the Congressional Budget Office.
The US's $33 trillion debt pile is reflecting "unsustainable" fiscal policy, according to the IMF, as the country faces the highest corporate default rates since 2009.
The US government's budget deficit reached $1.7 trillion in the 2023 fiscal year, exceeding the previous year's shortfall by $300 billion, prompting concerns from the International Monetary Fund about the country's fiscal situation.
The $25.8 trillion market for US Treasury debt is facing challenges due to changes in market structure and regulations, requiring policymakers to take action in order to keep the market functioning smoothly and prevent disruptions.
America's federal budget deficit doubled in the 2023 fiscal year due to slumping tax receipts, rising interest rates, and ongoing demand for pandemic relief benefits, reaching a deficit of $1.7 trillion; however, this number is actually smaller than last year's deficit due to an accounting mirage related to a student loan forgiveness program that was struck down by the Supreme Court.
The US federal budget deficit has reached $1.7 trillion due to a decrease in revenue, with the Biden administration attributing the decline to a drop in federal income taxes and increased spending on initiatives such as green energy and infrastructure.
The US posted a $1.695 trillion budget deficit in fiscal 2023, marking a 23% increase from the prior year due to falling revenues and increased outlays for programs such as Social Security and Medicare, as well as record-high interest costs on the federal debt.
The US budget deficit for fiscal year 2023 reached $1.7 trillion, a 23% increase from the previous year, posing challenges for Congress in reaching a federal spending deal before government funding runs out next month.
The U.S. government posted a $1.695 trillion budget deficit in fiscal 2023, the largest since 2021, due to falling revenues and increased spending on Social Security, Medicare, and interest costs on the federal debt.
The US 2023 federal budget deficit has soared by 23% to $1.7 trillion, with lower tax revenues and increased interest payments contributing to the worsening financial situation, potentially impacting federal funding negotiations and the looming government shutdown.
The US federal deficit has doubled to nearly $2 trillion, which has raised concerns among economists about the sustainability of government spending and the rising costs of borrowing money to cover the deficit. Both Republicans and Democrats have different approaches to addressing the deficit, but neither party's plan is considered sufficient to solve the problem.
The US deficit for fiscal year 2023 reached $1.7 trillion, growing 23 percent in a year, and multi-trillion-dollar deficits are expected to become the new normal under Bidenomics, driven by excessive government spending and insufficient revenues.
Americans are spending a trillion dollars a year in interest payments on the national debt, causing it to become an economic and national security emergency.
