Debts 02 - Govt etc (Nov 16 - Jan 24)

[behappyalways]

A surge of 359 billion in one day, the flood of U.S. debt burst

一天暴增3590亿，美债洪水大决堤

https://m.youtube.com/watch?v=Pp8NBjYV7sw

[winston]

by behappyalways:-

The national debt hit $32T last week - that equates to every person in America owing nearly $100K!

We should consider reining in the spending spree.

Source: Peter G Peterson Foundation

https://twitter.com/Mayhem4Markets/stat ... 7628442625

[winston]

America has less than a decade to turn itself around

by Simon Black

Foreign governments like China, Japan, and Saudi Arabia hold a combined $7.4 trillion of US debt.

The Federal Reserve owns $5.1 trillion of US debt.

Social Security owns another $2.7 trillion of US debt, which of course is money owed to American retirees. Similarly, the Military Retirement Fund holds about $1.36 trillion.

State and local governments hold about $1.55 trillion combined in US debt.

Mutual funds own another $2.84 trillion.

Banks own trillions worth of the national debt. Banks buy US government bonds with their depositors’ money, i.e., YOUR money.

Foreigners own just under 25% of the debt.

But does that make it OK to default on the other 75%? Is it somehow acceptable to default on banks across America, which bought US Treasuries with their customers’ money? Is it OK to default on 50+ million Social Security recipients? Or military retirees?

So, in order to avoid a major catastrophe, the debt needs to be repaid.

But with the national debt at 121% of GDP, is repaying it even possible anymore?

Back in the 1980s and 1990s, the US economy grew an average of 3.3% per year after adjusting for inflation; economists call this ‘real’ GDP growth.

But real GDP growth since 2000 has been much lower, averaging just 2%. And it turns out that the 1.3% difference in growth has had an enormous impact.

The federal government has already acknowledged that Social Security’s trust funds will run out of money in about 10 years. This means that, at best, America has less than a decade to turn itself around.

Source: Sovereign Man

[behappyalways]

A Case For A Bailout As $13 Trillion Chinese Local Debt Looms
https://www.zerohedge.com/markets/case- ... debt-looms

[winston]

Global public debt hits record US$92 trillion — UN report

By Jorgelina do Rosario

Developing countries owe almost 30% of the global public debt, of which 70% is represented by China, India and Brazil. Fifty-nine developing countries face a debt-to-GDP ratio above 60% — a threshold indicating high levels of debt.

In Africa, the amount spent on interest payments is higher than spending on either education or health.

Source: Reuters

https://theedgemalaysia.com/node/674581

[winston]

Endgame: US Federal Debt Interest Payments About To Hit $1 Trillion

BY TYLER DURDEN

US government outlays unexpectedly soared 15% to $646 billion in June, up almost $100 billion from a year ago.

Tax receipts slumped 9.2% from $461 billion to $418 billion, resulting in a TTM government receipt drop of over 7.3%, the biggest since June 2020.

Source: Zero Hedge

https://www.zerohedge.com/markets/endga ... 1-trillion

[winston]

China’s murky debt corner faces funding squeeze

By Lorretta Chen

The US$9 trillion (RM40.7 trillion) of Chinese local government bonds that helped drag the rest of the world out of the 2008 financial crisis are a growing risk this time around.

Goldman Sachs estimates that 34 trillion yuan of local government debt sits on the balance sheets of banks it covers.

Source: Bloomberg

https://theedgemalaysia.com/node/674969

[behappyalways]

World Debt at record high - around US$230t

https://twitter.com/zerohedge/status/16 ... 2068586499

[winston]

A $500 Billion Corporate-Debt Storm Builds Over Global Economy

by Jeremy Hill and Lucca De Paoli

Big corporate bankruptcies are piling up at the second-fastest pace since 2008, eclipsed only by the early days of the pandemic.

In the US, the amount of high-yield bonds and leveraged loans — which are owed by riskier, less creditworthy businesses — more than doubled from 2008 to $3 trillion in 2021.

In the Americas alone, the pile of troubled bonds and loans has already surged over 360% since 2021.

More than 120 big bankruptcies in the US alone already this year. Even so, less than 15% of the nearly $600 billion of debt trading at distressed levels globally have actually defaulted.

More than a quarter of the distressed debt worldwide — or about $168 billion — are tied to the real estate sector, more than any other single group.

Most of the distressed debt linked to the property sector is a result of the real estate bust in China.

Source: Bloomberg

https://finance.yahoo.com/news/500-bill ... 05895.html

[winston]

Americans Have Quietly Deleveraged. It May Explain the Economy’s Resilience.

By Larry Hatheway

From the end of 2007 (the eve of the global financial crisis) to the end of last year, the stock of U.S. household debt, as a percentage of U.S. gross domestic product, has fallen by a quarter, from 101% to 77% of GDP.

Prior to the financial crisis, total U.S. corporate debt securities and loans, as a share of GDP, peaked at 45%. Today that figure is 43%.

Source: Barron's

https://www.barrons.com/articles/americ ... eid=yhoof2