Research institution: The "debt mountain" in the United States is bound to become even larger. The ratio of debt to GDP is expected to set a record in 2029
六月清晨搅
发表于 2023-10-26 12:57:43
257
0
0
The Peter G. Peterson Foundation recently stated that the US $33 trillion debt mountain is bound to become even larger, and policymakers and legislators cannot rely solely on economic growth to get rid of debt problems.
The Peter G. Peterson Foundation is an independent organization dedicated to addressing the long-term fiscal challenges of the United States. The agency pointed out that the US public debt balance is constantly expanding, and as of the end of 2022, the debt to GDP ratio has reached 97%.
According to the prediction of the Congressional Budget Office (CBO), the ratio of US debt to GDP will reach 98% by the end of 2023. The Peter G. Peterson Foundation stated that at this rate, the US debt will reach 107% of GDP by 2029, which will be the highest debt to GDP ratio on record.
In the years after World War II, the debt to GDP ratio of the United States reached a historic high, with public debt reaching 106% of GDP in 1946. In the following decades, due to improved market conditions and post war economic prosperity, this ratio has significantly decreased, but researchers point out that this is unlikely to happen this time.
Given the current predictions of a huge basic deficit, population trends, and the Federal Reserve's focus on controlling inflation, the United States should not be expected to escape debt solely through rapid GDP growth, "researchers said in a report on Wednesday. Therefore, the ratio of debt to GDP approaching historical highs should serve as a wake-up call for legislators, and there are many feasible policy solutions to address the current fiscal and economic prospects
The debt of the United States during World War II declined largely because of the basic surplus of the national budget and the ceiling set by the Federal Reserve on treasury bond and bond yields, which artificially lowered the government's borrowing costs. In addition, economic growth and prosperity have also boosted the US GDP.
Now, although the US GDP is expected to grow by 5.4% in the third quarter, the government will not be on the track to reduce the budget deficit in the short term. Members of parliament have not yet reached an agreement on the budget for the new fiscal year, which makes it still possible for the 2023 government shutdown to occur.
At the same time, the Federal Reserve has warned that as the central bank closely monitors inflation, interest rates will remain high for a longer period of time. Although the yield of 10-year US treasury bond bonds once hit 5% this week, Federal Reserve Chairman Powell even said recently that the central bank would continue the current volatility of the bond market.
This is bad news for borrowers, including the US government. Experts say higher interest rates and bond yields may make it increasingly difficult for the United States to sustain its debt servicing costs. Goldman Sachs estimates that by 2025, the interest expenditure on US treasury bond bonds may rise to a record level.
What makes the situation even worse is that the US government has a huge debt of US $7.6 trillion due next year, accounting for 31% of the total US debt.
The growing concern about US debt means that the US government may find it difficult to find buyers of treasury bond bonds. A professor of Columbia University Business School recently warned that this may lead to the failure of the US treasury bond auction. At that time, the Federal Reserve will have to step in and buy US treasury bond bonds, which may eventually further exacerbate inflation.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- Top 20 US Stock Exchange Transactions: Tesla Cybertruck Retains as the Top Selling Model in the United States with a Sales Volume of Over $100000
- It's a mess! The US non farm payroll data was revised downwards by 818000, and the data was mysteriously stolen
- Pfizer launches drug sales platform directly targeting American patients
- Sell off Bank of America again! Buffett wants to clear his position? Berkshire Hathaway rises for 5 consecutive days
- Important data released by the United States! Nvidia's market value fell by over 6%, evaporating 1.4 trillion yuan overnight! Market Focus on Next Week's August Non farm Employment Report
- Japanese iron making: if the acquisition is successful, the American steel board will be dominated by Americans
- Boeing's Starliner spacecraft lands in New Mexico
- Rumors of Bausch&Lomb being 'sold' resurface, with parent company debt reaching $21 billion
- Shortly after delivering the 14th car, FF launched its second brand! Jia Yueting: Price announcement for a popular product that offers "twice the performance, half the price" for American users!
- China Photovoltaic Industry Association: The United States provides a large amount of photovoltaic subsidies in violation of regulations, distorting the global photovoltaic market
-
每经AI快讯,据亿航智能官微消息,公司EH216-S无人驾驶电动垂直起降航空器(eVTOL)获得巴西国家民航局颁发的试验飞行许可证书,并计划在巴西进行测试和试飞。关于EH216-S无人驾驶eVTOL在巴西的认证,中国民航局 ...
- 潇湘才子
- 昨天 08:41
- 支持
- 反对
- 回复
- 收藏
-
今年7月,美国三大海外“债主”所持美国国债齐刷刷缩水,其中日本美债持仓已降至去年10月以来最低。 根据美国财政部当地时间9月18日公布的国际资本流动报告(TIC),2024年7月,美国前三大海外“债主”日本 ...
- 520hacker
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
上证报中国证券网讯(记者俞立严)9月19日,蔚来全新品牌乐道的首款车型——乐道L60正式上市。新车定位家庭智能电动SUV,在采用BaaS电池租用服务后,L60的售价可低至14.99万元,电池租用月费最低为599元。乐道L6 ...
- anhao007
- 前天 11:03
- 支持
- 反对
- 回复
- 收藏
-
每经记者袁园 日前,国务院印发的《关于加强监管防范风险推动保险业高质量发展的若干意见》提出,以新能源汽车商业保险为重点,深化车险综合改革。 “车险综改”从2015年就已经开始逐步推进了,经过 ...
- moshulong
- 前天 21:50
- 支持
- 反对
- 回复
- 收藏