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Written by Piero Messina
Waiting for March Madness, it is good to clarify a concept: if the United States is sailing in a sea of debt, thanks to the Federal Reserve’s choice to become a continuous cycle money printing press, the rest of the planet – but above all the Western World – lives beyond his means. Only three days ago the International Organization for International Cooperation and Development (OECD) released data on the level of public and private debt on a global scale. The overall indebtedness of the OECD member states has reached the monstrous figure of 54 trillion dollars in 2023. To this now priceless sum must be added another 46 billion in private indebtedness: the world is a gigantic global default, a chasm of 100 trillion dollars. It was front page news. The mainstream media has relegated it to short economic news.
Analysts’ estimates confirm that the situation will worsen. The public debt of sovereign states will break the $56 trillion mark at the end of this year. In percentage terms – calculating the ratio between GDP and public debt – there are those who manage to do worse than the States: Japan, now a zombie state from the point of view of financial sustainability, Italy (with a ratio of 142 per cent percent ratio between public debt and GDP) and Greece, crushed years ago by the economic rigor hawks of Brussels.
The United States remains the leader in this ranking of financial economic madness with its 34 trillion dollars of debt, growing by a trillion every hundred days. The race for sovereign debt started in 2008 to save the banking world after the collapse of Lehman Brothers and took on new momentum with the monetary policies with which the damage caused by the lockdowns was addressed. The race shows no signs of stopping.
The United States ended 2023 with a deficit of 6.3% compared to a fifty-year average of 3.7%. In 2023, unemployment was at its lowest, GDP grew, wage increases were robust and the United States experienced a season of repatriation of industrial production with few precedents. The data on public debt and the American deficit do not go unnoticed. The comment of the Chairman of the Federal Reserve, Jerome Powell, applies to everyone: “the United States is on an unsustainable fiscal path”. Public debt issuance “cured” the bursting of the 2008 US housing market bubble. Inflation remained low until 2021 and then exploded to levels not seen for two generations as, coincidentally, the liquidity markets and fiscal stimulus in doses never seen in peacetime.
What has happened in the last three decades is not a good indicator of what will happen in the next for one simple reason. China and, secondly, Japan were two colossal engines of deflation that counterbalanced the effects of American and, in a broader sense, Western money printing. Today, trade with China is being affected by geopolitics and the restructuring of supply chains while even Japan is preparing to see wage increases to the point that to try to make ends meet it decides to double the number of foreigners eligible for skilled worker visas .
Who will foot the bill for this public debt? In Washington they have no doubt. Mr. Smith and Mrs. will pay the bill. Today the US economic and financial world is hoping for a crisis (perhaps caused by yet another proxy war) because by depressing consumption and prices it’s possible to crush inflation, justify the end of interest rate increases or their reduction and keep public debts afloat.
In geopolitics and economics coincidences do not exist. Thus, after the stop to the FBTP bank rescue program, the annual trend data for US inflation for the month of February will be released next Tuesday.
In the present intervention, a rate of 3.1% is estimated with a minimum interval of 3%; all this is due to the average price of WTI oil per barrel remaining in a range between 73 and 78 dollars, which is considered by the undersigned to be the main factor in raising the general price level, given its influence on every production and commercial sector; followed by the many disruptions to the logistics chains due to the breakdown of the product chains of global supplies of goods and finally the continued persistence of large deficits in the federal deficit; all this set of factors has as its only operational counterpart the level of Federal funds rates at 5.25-5.5%.
Public debt is a central topic in the electoral campaign which will lead to the election of the new American president on November 5th. In August, meanwhile, Fitch Ratings downgraded the country’s credit rating from “AAA” to “AA+”, due to “the constant deterioration of governance standards, including in tax and debt matters”.
According to the Congressional Budget Office’s thirty-year estimate, public debt will be equal to a record 181% of GDP by 2053. Is the US economy at risk? No, at least as long as investors are willing to lend money to the federal government and the economy continues to grow at a rapid pace the effects of the increase in debt will not have repercussions. But whose debt is that?
Today, approximately 80% of US debt is held by public investors, and 30% is in the hands of international organizations. Japan and China are the largest foreign holders of US debt, with $1,100 billion and more than $800 billion respectively.
Within the United States, debt has become a focal point of political debate. Republicans accuse Democrats of increasing the debt with excessive government spending plans, while Democrats argue that tax cuts under the administrations of George W. Bush and Donald Trump contributed significantly to the debt. Joe Biden has proposed plans to reduce future deficits by eliminating waste and imposing taxes on large corporations and high incomes.
debt itself is not the problem, the problem is who make the arbitrage when the debt is cancelled. they will decide who takes the losses: savers or vulture capitalists (goldman sachs, blackrock..)
world debt will cause that all social programs /pension funds will be bankrupt latest in 2030. this means no pension for me and you and anybody else (except elites who don’t care). the same apply for medical care. no treatment for anybody who will not pay with cash/gold in hospitals. if you think it is not a problem, i wish you wake up asap. this is still the better scenario, the worse scenario is a nuclear war of global proportions.
good. you are part of the problem. i hope all of you leeches loose you pensions.
my mean bitter amerikunt retired walmart cashier ex husband—did i forget to send you monthly food stamps?
who’s paying for you? uncle klaus?
wrong. you can make all the debt for yourself that you want, but forcing your debt on us is theft and slavery.
you can enslave yourself but stop enslaving othes you sorry piece of shit.
what is wrong with people? jull pointed out a fact, objectively and the mentally defective lash out & call him “you sorry piece of shit.” that’s really the underlying reason for all of humanity’s problems: stupidity.
he is promoting debt. if you believe in creating “public debt” then you are part of the problem. just like those who believe in democracy and equality.
your fantasies only serve to enslave.
“amerikans are mean bitter over conformist semi automatons that cannot provide each other sexual pleasure”. david riesman
“as nathan rothschild had commented, “i care not what puppet is placed upon the throne of england to rule the empire on which the sun never sets. the man who controls the british money supply controls the british empire, and i control the british money supply.” this applies to all countries of what used to be the west a a number of other countries as well.
spoiler alert…..
anglo humiliation amusing as uk tank worthless in ukie demo for embarrassed brit stenographers—the failed nato clown show must continue until russia completely shreds all nato self respect…these inferiors never learn
our germ economy dependent on russia now smaller and disintegrating—we pay half for nordstream and submissively allow amerikan to sabotage—germ think like amoeba
we are clever idiots colonized by senile amerikan
my senile economy now creates wealth income disparities worse than all except a few african nations—slightly worse than sweden–my peasants too stupid they satisfied with burger and fentanyl
it is not capitalism, but the global elites who are printing money to bribe politicians, media and “experts” in “thinktanks. these useful idiots will be the first to be depopulated. among them kasparov/fauci/merkel/johnson/biden -all of these useless puppets. but nobody will call for death penalty (prefereably by autopsy alive) for roth*, rockef* sor*, zuc* and others, who are laughing and pulling the strings. why russia don’t target these criminals? maybe putin has “deals” again?
very simplistic and very wrong point of view. first putin is not an dictator and he never could order to target zuc* sor* roth* who are the propaganda and economic tools of the western civilization. russia has more than 500 years of foreign experience and more than a thousand years of existence, so a young empire like usa could not play games on them, also iran (persians) are well aware of everything. tradition, culture, sovereignty could not be bribed.
what me worry? i scrub toilet 46 years in shekelstein coffin factory–when i retired i receive 2 taco per month pension but i satisfied nazi that seek approval from jens holm
amerikan autocracy is near collapse—crime ridden populated by morons—“stupidity is a virtue in amereika”. charles pierce…their peasants beg steal tantrum like stupo and jens…”the problem with amerikans is not orwellian–it is huxleyan: amerikans love their oppression”. neil postman…obviously the same true for senile jens holm
you failed to specify your thoughts only applies to the the lower levels of their society, the upper layers have “virtues” all around, as they control everything in the western world. the “masters of the puppets” are so clever. could you see all of the hidden goals behind proxy ukraine war against russia? i can number at least 300 goals in the usa aggression against russia with all outcomes in short, medium and long term.
amerikans are morons especially those trained in their universities—they control little
now piero messina with this comment: ” geopolitics and economics coincidences do not exist” corrected himself from the previous sentence. this year the western countries will experience a huge market correction, maybe the real state assets bubble will collapse, people will keep switching from us dollar to another currencies but the system is not so bad, the wheel will keep spinning. years 2025 and 2026 will be worst and still have time. i guess in 2027 we will experience a huge event.
amerika “goals”. farcical
sapiens study published—anglo nations very unhappy—lowest 25%—hapiest—asia africa latin amerika…russia is half asia half europe—the anglos and western europeans by 35-50% require mental health treatment to address their insecurities anxieties and paranoia
i feed my peasants burger taco donut—now 43% clinically obese 99% retarded
time to go to the nursing home joe bidet
“who will foot the bill for this public debt?” the federal reserve, and because of that the american people, and any country tied to the us dollar, through inflation. confetti money and phoney stock trades, and big banks backed by the fed doing phoney currency crosses. they lie about murdering people, they sure as hell lie about things like money, their businesses, and their banks. fiat debt based systems are ponzi schemes, and this one is in the terminal phase.
well, when it happens, then they will use that old mantra “we are all together in it” to put the burden on common folks!
“the world is a gigantic global default” obviously because money is created from debt. the total monetary mass is inferior to the total monetary mass + interests. see money as debt by paul grignon. that’s “legal” theft. that’s why christian and islamic nations banned usury for centuries. on the contrary judaism promote usury : read deuteronomy 15:6.
the amerikan empire=dead
debt is not capitalism.
amerika is a feudal oligarchy totalitarian autocracy fool, no capitalism in your dumb monarchy
things are connected that don’t belong together. debt doesn’t start wars……politicians do. if you get rid of politicians, you will see that no more wars can be triggered. or could the nazi regime in ukraine do what it does without this oppressive system??? politicians are dictators and this system is a dictatorship. the people have nothing to say and are dominated by a small group. this is a dictatorship, no matter what this small group says it is.
in the us fiscal prudence and good governance have gone out the window a long time ago. the greedy are now in charge and they will milk the cow until it dies.
agreed, this will be going till the end. only the ones who can predict correctly the future (or have information) in advance could avoid their own financial disaster. expect big issues and a great event by 2027.
the highest national debt of the entire observable universe and still the us thinks it’s a good idea to send hundreds of billions to other countries. “the greatest country in the world”…. yes if you believe in fairy tales.
biden estúpido pedofiló. vá para um asilo ou um sanatório ou volte para sua pederastia contra crianças.
to sa im to šafári keď narábajú s cudzími peniazmi. usa sú pred bankrotom a preto potrebujú veľkú vojnu. chcú ostať bokom ako počas wwi a wwii. potom sa nakoniec pridajú na stranu víťazov a tvária sa ako by oni boli spasitelia sveta. pritom to boli samotné usa čo daný problém spôsobili.
“amerika ia gigantic a gigantic mistake”. sigmund freud
amerika=inverted totalitarianism; sheldon wolin
“there is no functioning democracy in amerika.. it is an oligarchy…jimmy carter
amerika—procedural republic like north korea: muchael sandel