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US national debt exceeds $36 trillion — US Debt Clock service statistics Earlier, Republicans criticized US President Joe Biden for his policies, which, in their opinion, led to an increase in the national debt NEW YORK, November 15/ The US national debt has exceeded $36 trillion for the first time in history, according to statistics from the US Debt Clock service. The service's database shows $36 trillion in the "total national debt" column as of November 15. This is a record figure. In early January, it exceeded $34 trillion. Earlier, Republicans criticized US President Joe Biden for his policies, which, in their opinion, led to an increase in the national debt. In June, the IMF in its report on the results of the review of the US economy stressed that the country needs to urgently address the problem of national debt, which by 2032 will amount to 140% of GDP. The IMF said that the continued growth of the public debt-to-GDP ratio must be urgently halted. "Such high deficits and debt create a growing risk to the U.S. and global economy, potentially feeding into higher fiscal financing costs and a growing risk to the smooth rollover of maturing obligations," the Fund said. According to forecasts by the Congressional Budget Office, the national debt in 2034 will exceed $50 trillion (122% of GDP). According to the office's estimate, the average annual GDP growth in 2029-2034 will be 1.8%. #business #finance #financialservices

A $34 Trillion Time Bomb? ⌛💣 As of July 2024, the US national debt is about $34.58 trillion (Yes with a T!), with a Debt to GDP ratio of around 122% 📈. Is this worrisome? Let’s dig in. What is Debt to GDP Ratio? 🤔 This ratio shows the government’s ability to repay its debt. A higher ratio means more difficulty in servicing debt, leading to higher taxes and reduced social spending, which can hinder economic growth. Interest payments on the debt are now the second-largest federal expenditure, just behind Social Security for the US government. Historical Context - The current ratio of 122% is the highest ever, surpassing the 110% during World War II. 😱 What brought the US here?  Debt levels surged 🚀 during COVID-19 due to increased government spending financed by low-cost debt to stimulate the economy. Who Are the Lenders to the US Government? 🏦  Federal Reserve: Largest lender.  Foreign Governments: Japan, China, and the UK lead the pack.  Other Investors: Including government-sponsored enterprises, brokers & dealers, mutual funds, etc. Is the US debt trajectory unsustainable? Only time will tell. Share your thoughts in the comments. Here’s an interesting read from the American Institute for Economic Research - AIER by Thomas Savidge & Ryan Yonk on the US debt and its breakdown. Follow and share! ✨  

Latest news: U.S. national debt has reached $35 trillion as of July 2024. It rises by $1 trillion in 2024 alone, bringing the current debt-to-GDP ratio to 96% and expected to surpass 140% by 2032, according to the International Monetary Fund (IMF). For those unfamiliar with the term, the debt-to-GDP ratio compares a country’s total debt to its GDP (Gross Domestic Product). Think of it like a one’s debt is compared with their annual income. A high ratio means that the country owes more each year than it produces. So, what could happen to the US dollar and economic future? If debt continues to rise, it could weaken the dollar, make imports more expensive, and potentially increase inflation. It could also mean higher taxes or reduced future government spending on public needs like schools, healthcare and infrastructure.

U.S. government debt hit $35 trillion at the end of July, the latest milestone since quarterly interest payments reached $1 trillion earlier this year. As Head of Fixed Income Christopher Gunster, CFA, discusses in his latest Forbes.com article, “an increasing amount of debt could lead to higher interest rates and higher inflation, if not addressed.” From a surging federal debt-to-GDP ratio and rising interest payments, to declining foreign demand for U.S. debt, Chris breaks down why this historic figure has investors watching long-term rates. Read the article for a full analysis:

https://lnkd.in/gSNCPD2k The rate of increase in the national debt should be alarming for everyone who is not a politician. Just because the amount of debt is too great to ever re-pay doesn't mean we can't stop if from increasing. 1. Eliminate redundancy, waste and frivolous pork programs. 2. Adhere to a balanced budget 3. Allow our economy to gradually increase to $72 trillion so national debt will be 50% of GDP instead of growing to 150% of GDP as projected. It is just a matter of time before the Japanese, Chinese, and others reduce their purchase of US Treasury Bonds. Whenever that occurs, interest rates will increase dramatically and interest payments on the national debt will strangle the US economy.

The Congressional Budget Office estimates that the total amount of gross federal debt will reach $52 trillion by 2033, a 48.5% increase from today’s level. The continued growth in the budget deficit and subsequent increase in the amount of federal debt has major implications for investors, if the recent volatility hasn’t added enough fuel to the fire. Read my latest Forbes.com column below for the full picture.

According to recent Treasury Department data, the U.S. national debt has surged by another $61 billion, pushing it past the $36 trillion threshold to $36.03 trillion. This milestone comes just four months after the debt exceeded $35 trillion (on July 26) and 11 months after crossing the $34 trillion mark (on December 29). Trillions fly by so quickly, that they’re almost impossible to track. the national debt has ballooned by $2 trillion, despite GDP growth that has been well above the 15-year average. What’s striking is that these massive increases are happening during a period of strong economic performance. The question looms: if the debt is expanding so rapidly now, what would happen during a recession, when tax revenues fall, and government spending soars? https://lnkd.in/gyedPi5t

🌍 The global debt bomb of $100 trillion continues to tick, warns the IMF. • Global Public Debt: It is expected that the level of public debt worldwide will exceed $100 trillion by the end of the year and approach 100% of GDP by 2030. • Causes of Growth: The primary drivers of this growth are China and the United States, highlighting the need for debt reduction measures. Remarks from the IMF Director Kristalina Georgieva, Managing Director of the IMF, emphasized in her speech that rising debt is becoming a burden for the global economy: “Our forecasts indicate a relentless combination of low growth and high debt — a challenging future. Governments need to work on reducing debt and rebuilding buffers for the next shock — which is bound to happen, possibly even sooner than we expect.” Discussion at the IMF Meeting • The meeting will take place two weeks before potentially historic elections in the U.S., while the recent inflation crisis is still unresolved. • On Wednesday, the IMF’s Fiscal Monitor will focus on the fact that public debt is projected to reach $100 trillion, with an emphasis on China and the U.S. Some finance ministers may receive additional reminders by the end of the week: • UK Finance Minister Rachel Reeves has already faced an IMF warning about the risk of market reactions if the debt is not stabilized. • Tuesday is the last day for publishing public finance data before the budget on October 30. Trends in the UK The UK tax authority is implementing stricter measures to recover debts, aiming to secure an additional £5 billion ($6.5 billion). Attention to France Meanwhile, Moody’s has scheduled a potential report on France for Friday, which is currently under close scrutiny from investors. Markets will be watching for any changes in the forecast.

The kings of national debt among US presidents (Mar 17, 2024) The US national debt has now reached $ 34.5T, which is nearly twice as high as the GDP of the world’s second largest economy (China). With a US GDP of $ 27.9T, the US debt-to-GDP ratio is currently already 123.66%. In 2024 and the following years, the interest payments the US government has to make annually on the national debt will be between $ 1T and $ 1.2T, which is even more than the annual US military spending. Did you know that the last four US presidents are responsible for 83.19% of the total national debt, that is, an increase in debt of $ 28.7T over the last 23 years ? In the same time period, their contribution to GDP was only 62.01%, totaling $ 17,3T with a debt-to-GDP ratio of 165,90%. Now let's dive a little deeper, taking a look at the contribution of each of them to debt increase and GDP growth on an annual average (note that the figures for the first calendar year of a new presidential mandate are still officially assigned to the presidential mandate of the predecessor). a.) George W. Bush (2001 – 2009) GDP growth: $ 3.9T; debt increase: $ 6.1T; debt-to-GDP ratio: 156.41% ==> GDP growth: $ 0.49T/year; debt increase: $ 0.76T/year  b.) Barack Obama (2009 - 2017) GDP growth: $ 5.1T; debt increase: $ 8.3T; debt-to-GDP ratio: 162.74% ==> GDP growth: $ 0.64T/year; debt increase: $ 1.04T/year c 1.) Donald J. Trump (2017 - 2021); (including pandemic year 2020) GDP growth: $ 4.0T; debt increase: $ 8.2T; debt-to-GDP ratio: 205.00% ==> GDP growth: $ 1.00T/year; debt increase: $ 2.05T/year c 2.) Donald J. Trump (2017 - 2021); (excluding pandemic year 2020) GDP growth: $ 4.2T; debt increase: $ 4.0T; debt-to-GDP ratio: 95.24% ==> GDP growth: $ 1.4T/year; debt increase: $ 1.33T/year d.) Joe Biden (2021- mid March 2024) GDP growth: $ 4.3T; debt increase: $ 6.1T; debt-to-GDP ratio: 141.86% ==> GDP growth: $ 1.94T/year; debt increase: $ 2.76T/year Ranking by debt: 1.)   Bush: $ 0.76T/year 2.)   Obama: $ 1.04T/year 3.)   Trump (without 2020): $ 1.33T/year 4.)   Trump (with 2020): $ 2.05T/year 5.)   Biden:  $ 2.76T/year Ranking by GDP: 1.)   Biden: $ 1.94T/year 2.)   Trump (without 2020): $ 1.4T/year 3.)   Trump (with 2020): $ 1.00T/year 4.)   Obama: $ 0.64T/year 5.)   Bush: $ 0.49T/year Ranking by debt–to-GDP ratio 1.)   Trump (without 2020): 95.24% 2.)   Biden: 141.86% 3.)   Bush: 156.41% 4.)   Obama: 162.74% 5.)   Trump (with 2020): 205.00% All four US presidents have driven GDP growth based primarily on debt, which is quite difficult to contrast in Trump’s case due to the extraordinary debt impact of the pandemic year 2020, whose spending has to be entirely attributed to him, although he cannot be held responsible for such an unusual circumstance. US citizens should seriously reflect on whether the two retirement-age candidates, Biden and Trump, are truly the best options to govern the future of the world’s largest economy in an extremely challenging time like ours.

Debt-to-GDP ratio: A misunderstood metric? When understanding a country's financial health, the debt-to-GDP ratio often enters the conversation. But are we interpreting this indicator correctly, especially when comparing nations like India, Japan, and the USA? First off, it's crucial to distinguish between government debt and private debt. Government debt refers to the public sector's borrowings, while private debt encompasses the liabilities of households and businesses. Each tells a different story about economic health and potential risks. So, why does a high debt-to-GDP ratio spell trouble for some countries but not for others? The answer lies in the economic context and investor confidence. Japan, for instance, holds a staggering debt-to-GDP ratio, yet it's deemed low-risk. This paradox is due to Japan's unique situation: a significant portion of its debt is owned domestically, and it has a strong track record of stability and investor trust. Contrast this with emerging economies, where a high ratio can signal vulnerability. For these nations, reliance on foreign investment and a history of volatility can turn high debt levels into a red flag for investors. But here's where it gets interesting. The narrative is evolving. Countries like India are challenging the traditional perceptions of debt sustainability. With strategic reforms and a focus on growth, the question isn't just about how much debt a country has but how it utilises that debt for development. The key takeaway? The debt-to-GDP ratio is not a standalone measure of risk. The underlying factors - investor confidence, economic policies, and the composition of debt - truly matter. Let's shift the dialogue. Instead of fixating on the numbers, should we focus on the stories behind them? How can nations leverage their debt for sustainable growth? Hi, I am @asheeshchatterjee, a CA, CMA (India & UK) and an alumnus of Kellogg School of Management; I love talking about building blocks for the next level of growth and excellence.