The drip-drip US debt crisis

Live updates

1. 16d ago

   US Debt Crisis Characterized as Chronic Rather Than Acute

   The United States is experiencing a debt crisis that differs from the sudden defaults seen in Greece or Argentina. While not an acute emergency, the situation persists as a slow-burning crisis. This follows a period where the national debt exceeded $40 trillion, doubling during the Trump and Biden administrations. Current economic pressures include the spectre of inflation and a history of central bank resistance to raising interest rates during the 2021-22 period following the pandemic and Russian gas price manipulation.

   Why it matters

   Sustainability concerns arise as debt levels climb, impacting both the domestic economy and global financial stability. The trajectory of US borrowing creates long-term risks for policymakers. Central bank actions regarding interest rates remain a point of contention.

   Still unconfirmed

   • The US is suffering a debt crisis that is not an acute emergency like Argentina or Greece
   • The Bank of England and Federal Reserve resisted raising interest rates despite previous accusations of complacency in 2021-22
   • Donald Trump's diversion with Iran left global economies haunted by inflation

   What to watch next

   • Federal Reserve decisions on future interest rate adjustments
   • Updated national debt totals exceeding $40 trillion
   Sources used for this update (4)

   1. www.yahoo.com — Learning to Burn
   2. finance.yahoo.com — Thank god interest rates have risen – we were living in a fantasy
   3. www.newindianexpress.com — ‘Firefly’ farmer’s green thumb turns sandy wasteland ‘golden’
   4. www.nikkei.com — The drip-drip US debt crisis
   confidence 60%
2. 20d ago

   US debt surpasses $40 trillion threshold

   The United States' national debt has crossed the $40 trillion threshold, with the debt doubling under the administrations of Trump and Biden. This development has raised concerns among economists and policymakers about the sustainability of the US debt trajectory. The increasing debt has significant implications for the US economy and the world.

   Why it matters

   The US debt crisis has been a longstanding concern, with the country's budget deficit and debt levels continuing to rise. The debt has doubled under the Trump and Biden administrations, reaching a new milestone of $40 trillion. This has sparked debate about the need for fiscal responsibility and the potential consequences of inaction.

   What is confirmed

   • The US debt has crossed the $40 trillion threshold.
   • The US debt doubled under the Trump and Biden administrations.
   • Economists are concerned about the sustainability of the US debt trajectory.

   Still unconfirmed

   • The US budget deficit under Trump may have peaked.

   What to watch next

   • The US government's response to the debt crisis
   • The impact of the debt crisis on the US economy and global markets
   • The outcome of upcoming budget negotiations and potential policy changes
   Sources used for this update (11)

   1. Reuters — US debt crosses $40 trillion threshold after doubling under Trump and Biden
   2. CNBC — Bessent says there's a 'very good chance' U.S. budget deficit under Trump has peaked
   3. The Washington Post — As debt surpasses $40 trillion, the bill for Washington spending comes due
   4. The New York Times — Opinion | $40 Trillion Debt? The Ancient Sumerians Wouldn’t Have Cared.
   5. Fortune — Treasury's recent moves in the bond and currency markets add up to 'soft-form financial repression'
   6. MS NOW — Opinion | Our debt trajectory is unsustainable. Tax cuts are to blame.
   7. Financial Times — The drip-drip US debt crisis
   8. The Nation — Of Debt and Deficits and the Dollar System
   9. The Conversation — $40 trillion debt balloon is a warning sign for US economy and the world
   10. www.theatlantic.com — Economists Who Weren’t Worried About the Debt Are Now Panicking
   11. www.afr.com — Lessons from America’s drip-drip debt crisis
   confidence 90%