Will quantitative easing make a comeback? Bank of America: US debt is increasing by 5.2 billion US dollars, and the Federal Reserve may help
安全到达彼岸依
发表于 2023-11-8 11:22:17
1348
0
0
Bank of America cited data from the Congressional Budget Office (CBO) in a report on Tuesday, stating that the US government debt is expected to exceed $50 trillion by 2033.
Michael Hartnett, an investment strategist at Bank of America, stated that the US public debt balance is currently $33.6 trillion and is expected to surge by $20 trillion to $54 trillion over the next decade.
The public debt of the United States... is more than the combined GDP of China, Japan, Germany, and India, "he wrote, adding that over the next 10 years, the outstanding debt of the United States will surge by $5.2 billion per day, or $218 million per hour.
While the US debt soared, the federal deficit also exploded. The budget deficit of the United States in the 2023 fiscal year was $1.695 trillion, an increase of approximately $320 billion or 23% compared to the previous fiscal year. This forced the US Treasury Department to auction trillions of dollars of treasury bond.
In addition, the soaring bond yields have led to a surge in annual interest expenses, further exacerbating the debt burden. These expenditures account for an increasing proportion of the federal budget, and the deficit is also expanding.
Media analysis shows that as of the end of last month, the annual interest expenditure of US treasury bond bonds was estimated to have exceeded $1 trillion. In the past 19 months, this number has completely doubled, equivalent to 15.9% of the total federal budget for the fiscal year 2022.
The Federal Reserve may step in to rescue the government
Bank of America stated that as long as US policymakers continue to borrow heavily, causing the government's outstanding debt to continue to increase, investors will worry about lingering risks such as inflation, bond defaults, and currency depreciation.
Hartnett said, "In the coming years, the central bank may rescue the government through quantitative easing and the introduction of yield curve control (which is unfavorable to the US dollar)
Ed Yardeni, a market veteran and president of investment consulting firm Yardeni Research, also warned on Monday that the recent rebound in the price of US treasury bond bonds does not mean that the US debt crisis has ended.
He pointed out that due to concerns about the growing debt size of the United States, "bond market vigilantes" - bond market investors who sell bonds to force Congress to reduce the fiscal deficit - will continue to attack.
It is worth noting that investors should not expect the US government to stop borrowing, as a reasonable increase in debt size can help drive economic growth and currency circulation. In 1835, the US government paid off all its interest bearing debts for the only time, and then fell into a two-year economic depression.
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
- The US presidential election is in a white hot state: it's hard to say who will lose or win. The key lies in Hart's first debate!
- Has Trump's attempted assassination and political violence become the 'new normal' in the United States?
- Moving towards a bull market? China's massive easing boosts Bitcoin outlook to $70000
- BeiGene PD-1 is priced 20 times higher in the United States than in China, and innovative drugs have to go overseas to make money
- A century old battle between Chicago Stock Exchange and Trump's close friends over the US treasury bond bond market
- Musk claims that only two car companies in the United States have not gone bankrupt, and the future of the American version of "NIO" is worrying
- 49 people in the United States fell ill and 1 person died from consuming a McDonald's burger
- Foreign media: 49 people in the United States fell ill and 1 person died from eating a McDonald's burger
- The world is holding its breath in anticipation of the US election: 'Trump 2.0' is troubling economic leaders around the world!
- What major changes will the US technology industry face as the Trump 2.0 era approaches?
-
随着“银十”结束,各家造车新势力都交出了一份亮眼的成绩单。 理想领跑10月新势力交付榜,鸿蒙智行重回4万辆,零跑、深蓝、极氪、小鹏等单月交付量均创新高,岚图、阿维塔、智己等实现破万,但哪吒却消失在 ...
- fanadam
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
证券时报网讯,热门中概股美股盘前普涨,小鹏汽车、哔哩哔哩涨近5%,蔚来涨超4%,阿里巴巴、拼多多涨超2%。
- p609520
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
何思文表示,“在进博会这个平台上,我们开启的是倾听模式,通过进博会展出各类产品,收集消费者的需求和反馈,进而帮助决定未来进口到中国的产品。过去,汽车行业的许多创新源于美国加州或欧洲。我相信,中国正 ...
- MaxLucky
- 4 小时前
- 支持
- 反对
- 回复
- 收藏
-
11月5日至10日,第七届中国国际进口博览会(下称“进博会”)在国家会展中心(上海)举办。在进博会期间,平安健康医疗科技有限公司(下称“平安健康”)与美敦力(上海)管理有限公司(下称“美敦力”)达成战 ...
- Hidden2
- 前天 17:06
- 支持
- 反对
- 回复
- 收藏