Category: US Debt
The analysis published under this category are as follows.
Thursday, July 19, 2007
Who Do We Owe and How Much? / Economics / US Debt
By: Mike_Hewitt
This essay takes an in-depth look at the magnitude and consequences of the large debt levels within the United States. Topics discussed include: composition of foreign and domestic holders of U.S. debt, consequences of the government borrowing from the Federal Reserve, and a look at the current U.S. housing market.
The National Debt
The national debt (also known as public debt) is money owed by the federal government. As the government represents the people, government debt can be seen as an indirect debt of the taxpayers. The U.S. government incurs debt by issuing treasuries (bills, notes and bonds).
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Wednesday, June 20, 2007
The Perils of Monetizing US Debt / Economics / US Debt
By: Jes_Black
In our weekly reports, we often take the classical view on money. While we admit that monetarism may fail as an easy policy approach, from a fundamental standpoint, the supply of money will ultimately decide the long term rate of interest.
The classical view holds that interest rates will adjust to the equilibrium level between savings and investment. The prevailing Keynesian view is that interest rates will adjust to the supply and demand for money.
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Thursday, May 31, 2007
Washington is Robbing You Blind as National Debt Limit is Upped towards $10 trillion / Economics / US Debt
By: Money_and_Markets
Larry Edelson writes: Not many people noticed, but on May 17 the folks in Washington upped the country's national debt limit to $9.815 trillion . That's a whopping $1.635 trillion increase in less than three years.
The U.S. was broke when the debt ceiling hit $7 trillion … it was broke when the limit was raised to $8.18 trillion … and things just keep getting worse.
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Wednesday, January 24, 2007
State of the Union - THE UNITED STATES IS INSOLVENT / Economics / US Debt
By: Dr_Martenson
Prepare to be shocked.
The US is insolvent. There is simply no way for our national bills to be paid under current levels of taxation and promised benefits. Our federal deficits alone now total more than 400% of GDP.
That is the conclusion of a recent Treasury/OMB report entitled Financial Report of the United States Government that was quietly slipped out on a Friday (12/15/06), deep in the holiday season, with little fanfare. Sometimes I wonder why the Treasury Department doesn't just pay somebody to come in at 4:30 am Christmas morning to release the report. Additionally, I've yet to read a single account of this report in any of the major news media outlets but that is another matter.
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Sunday, October 15, 2006
US Debt Mountain - How can it be serviced ? / Economics / US Debt
By: Sarah_Jones
The US in the financial year ending 2006, paid over $400 billion in interest on debt ! Following the 14 consecutive Fed rate what will happen when the debt needs to be reissued at these higher interest rates ? I.e. average debt maturity is less than 60 months with total US debt stands at $8 trillions. Thus interest payments are likely rise substantially in the coming years whilst at the same time the US is running an record annual budget deficit of over $500 billion.
So what can the Federal Reserve do to extricate the US from this developing crisis ?
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