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The US national debt now exceeds $31 trillion for the first time ever — and here’s who the country owes

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The US national debt now exceeds $31 trillion for the first time ever — and here’s who the country owes

America’s total national debt has reached new heights, exceeding $31 trillion, according to a report released by the US Treasury this week.

If you find it hard to stick around, it basically boils down to more than $93,000 in debt per person in the country, according to the Peter J. Peterson Foundation.

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And with interest rates soaring over the past few months – the Fed funds rate is currently between 3% and 3.35% – the national debt will grow at a rate that makes it hard to ignore.

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The past few years have been expensive

A deficit is what happens when the government spends more money than it earns in taxes – and in the last two years It was expensive.

Several big, exorbitant bills have been approved since the pandemic began, including the $1.9 trillion US bailout bill and $750 billion in student debt relief, all of which increase the deficit, which then adds to the debt.

Although Inflation reduction lawIt is expected to cut the deficit by $240 billion, which was passed in August, and the policies and programs introduced by the Biden administration are expected to add trillions more over the next decade.

The Committee on Responsible Federal Budget estimates that $4.8 trillion will be added to the deficit by 2031.

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“Excessive borrowing will keep inflationary pressures going, push the national debt to a new record high as soon as 2030, and triple federal interest payments over the next decade — or even sooner if interest rates rise faster or more than expected,” he says. CRFB.

Read more: Do you fall into the lower, middle, or upper class in America? How does your income accumulate?

A lot of borrowing happened in the last couple of years while interest rates were historically low, but now they aren’t anymore, with Inflation rising at the fastest pace Within decades, the cost of that debt will likely balloon.

Currently, just over $965 million is spent daily in interest on the national debt. The Peterson Foundation estimates that will triple over the next decade, making it the fastest-growing component of the federal budget.

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So who owns America’s national debt?

There are different types of national debt. Think of it like having a credit card, a mortgage, and paying off a car—they’re all debt, but they’re different. The US Treasury manages the national debt, which is divided between what one government agency owes to another and debt held by the public.

External debt represents about $6.5 trillion in debt.

The bulk of the debt is publicly owned. Now, that’s about $24 trillion.

Most of this debt is held by foreign governments as well as banks, private investors, state and local governments, and the Federal Reserve, and it is held in Treasury bills, bonds, and bonds.

Foreign governments and private investors are among the largest holders of public debt, holding about $7.7 trillion. Domestically, the Federal Reserve holds the largest share of public debt, at about 40%.

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finally, high interest rates It will only worsen the national debt, making it difficult for the government to respond to the slowing economy.

Michael A. said: Peterson, CEO of the Peter J. Peterson Foundation, said in a statement: “For too long, policy makers have assumed perpetually low interest rates, and we are now seeing in real time how risky that assumption is.”

“With our debt exceeding $31 trillion, it’s time to take action.”

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.