$677,000,000,000 Added To US National Debt in Three Months As BlackRock CEO Warns Situation ‘More Urgent Than I Can Ever Remember

[edjr 6,590]

https://dailyhodl.com/2024/03/31/677000000000-added-to-us-national-debt-in-three-months-as-blackrock-ceo-warns-situation-more-urgent-than-i-can-ever-remember/

 

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The US government just added more than half a trillion dollars to its balance sheet in three months.

Data from the Treasury Department’s Debt to the Penny database shows the national debt rose from $33.896 trillion on December 27th to $34.573 trillion on March 27th – an increase of $677 billion.

 

The CEO of the world’s largest asset management firm, BlackRock, says the mounting pile of debt matters.

In a new letter to shareholders, Larry Fink breaks down the state of America’s balance sheet.

“In America, the situation is more urgent than I can ever remember. Since the start of the pandemic, the U.S. has issued roughly $11.1 trillion of new debt, and the amount is only part of the issue. There’s also the interest rate the Treasury needs to pay on it.

Three years ago, the rate on a 10-year Treasury bill was under 1%. But as I write this, it’s over 4%, and that 3-percentage-point increase is very dangerous. Should the current rates hold, it amounts to an extra trillion dollars in interest payments over the next decade.

Why is this debt a problem now? Because historically, America has paid for old debt by issuing new debt in the form of Treasury securities. It’s a workable strategy so long as people want to buy those securities — but going forward, the U.S. cannot take for granted that investors will want to buy them in such volume or at the premium they currently do. Today, around 30% of U.S. Treasury securities are held by foreign governments or investors. That percentage will likely go down as more countries build their own capital markets and invest domestically.”

Fink believes the ballooning debt represents a real threat to the country’s fiscal future.

“More leaders should pay attention to America’s snowballing debt. There’s a bad scenario where the American economy starts looking like Japan’s in the late 1990s and early 2000s, when debt exceeded GDP and led to periods of austerity and stagnation.

A high-debt America would also be one where it’s much harder to fight inflation since monetary policymakers could not raise rates without dramatically adding to an already unsustainable debt-servicing bill.”

Although the current trajectory is concerning, Fink says a debt crisis is not inevitable.

“While fiscal discipline can help tame debt on the margins, it will be very difficult (both politically and mathematically) to raise taxes or cut spending at the level America would need to dramatically reduce the debt. But there is another way out beyond taxing or cutting, and that’s growth. If U.S. GDP grows at an average of 3% (in real, not nominal terms) over the next five years, that would keep the country’s debt-to-GDP ratio at 120% – high, but reasonable.

I should be clear: 3% growth is a very tall order, especially given the country’s aging workforce. It will require policymakers to shift their focus. We can’t see debt as a problem that can be solved only through taxing and spending cuts anymore. Instead, America’s debt efforts have to center around pro-growth policies, which include tapping the capital markets to build one of the best catalysts for growth: Infrastructure. Especially energy infrastructure.”

 

 

The economy is fine, stupid.  

[Tree of Knowledge 1,859]

Elect (actually install) a clown. Expect a circus. 

[Voltaire 5,316]

Larry Fink is the debbil but that doesn't mean he's wrong. I've long wondered why the US economy floats with all this debt. Explanations I get don't register and so I just get mroe paranoid instead.

[edjr 6,590]

1 minute ago, Voltaire said:

Larry Fink is the debbil but that doesn't mean he's wrong. 

100%  Even the devil wants hell to run without debt. 

[Hardcore troubadour 15,433]

 Charge it! What could go wrong? 

[Tree of Knowledge 1,859]

Seize all assets of anyone involved in funding the invasion of our southern border. The Catholic Church, WEF, Open Society folks, etc. and the rest would cover a nice chunk. 

[edjr 6,590]

5 minutes ago, Hardcore troubadour said:

 Charge it! What could go wrong? 

I recently needed to apply for a mortgage so I had to unlock all my credit. While it was unlocked, I raised all my credit limits to 50k or more.  All 0 balances cept my amex, which I pay off every month.

Now I was imaging going on a world wide bender, visiting every country that has the good drugs and just max out all my credit (after the cash was gone) and just have a great time. Who could stop me?

[TheNewGirl 1,491]

Quote

 

Why is this debt a problem now? Because historically, America has paid for old debt by issuing new debt in the form of Treasury securities. It’s a workable strategy so long as people want to buy those securities — but going forward, the U.S. cannot take for granted that investors will want to buy them in such volume or at the premium they currently do. Today, around 30% of U.S. Treasury securities are held by foreign governments or investors. That percentage will likely go down as more countries build their own capital markets and invest domestically.”

I should be clear: 3% growth is a very tall order, especially given the country’s aging workforce. It will require policymakers to shift their focus. We can’t see debt as a problem that can be solved only through taxing and spending cuts anymore. Instead, America’s debt efforts have to center around pro-growth policies, which include tapping the capital markets to build one of the best catalysts for growth: Infrastructure. Especially energy infrastructure.”

 

So,  we have countries that no longer want to back us because they are building their own markets. Good for them, and it's something that WE should unfortunately be focusing more on, but instead dumping trillions into proxy wars and not closing our border and investing here at home. Our economy is garbage (yes, it is), no one can afford to buy a  house and rents are just as bad. Groceries, gasoline, utilities are also getting more expensive. 

The second paragraph is also interesting because of the aging workforce. You have Boomers that are well into retirement, starting to die off and leave what they have to Get X kids (sometimes still taking SOME tax benefits, some not). You now have some Get X kids retiring as well. The problem (IMO) is coming with the younger work force who expect to make 6-figures immediately out of school and then have that increase quickly over time, getting their millions in bonuses, like they are their own little CEOs. If not, then they expect their $50/hour minimum wage jobs, but don't really understand that that means fewer jobs for them out there, OR it means higher prices. The debt will continue to rise, just so American can pay off what Biden is doing now, it will last decades unless and until someone buys America (if they already haven't). 

I find it incredibly sad. 

I am not an economist, but this is just my hot take on it all from is one article blurb. Other countries are watching us, fighting over abortion and which bathrooms and sports trans people should be allowed to use so their feelings don't get hurt, all the while everything else is falling into the proverbial toilet. Is it going to go to cr@p overnight? No, and it's not a catastrophe at this point, but I don't really see it getting exponentially better in the next 20 to 30 years. 

[edjr 6,590]

1 minute ago, TheNewGirl said:

So,  we have countries that no longer want to back us because they are building their own markets. Good for them, and it's something that WE should unfortunately be focusing more on, but instead dumping trillions into proxy wars and not closing our border and investing here at home. Our economy is garbage (yes, it is), no one can afford to buy a  house and rents are just as bad. Groceries, gasoline, utilities are also getting more expensive. 

The second paragraph is also interesting because of the aging workforce. You have Boomers that are well into retirement, starting to die off and leave what they have to Get X kids (sometimes still taking SOME tax benefits, some not). You now have some Get X kids retiring as well. The problem (IMO) is coming with the younger work force who expect to make 6-figures immediately out of school and then have that increase quickly over time, getting their millions in bonuses, like they are their own little CEOs. If not, then they expect their $50/hour minimum wage jobs, but don't really understand that that means fewer jobs for them out there, OR it means higher prices. The debt will continue to rise, just so American can pay off what Biden is doing now, it will last decades unless and until someone buys America (if they already haven't). 

I find it incredibly sad. 

I am not an economist, but this is just my hot take on it all from is one article blurb. Other countries are watching us, fighting over abortion and which bathrooms and sports trans people should be allowed to use so their feelings don't get hurt, all the while everything else is falling into the proverbial toilet. Is it going to go to cr@p overnight? No, and it's not a catastrophe at this point, but I don't really see it getting exponentially better in the next 20 to 30 years. 

  

Forget about moving to Texas or Florida, In all honesty. What is the best country to move to? 

[RLLD 4,230]

2 minutes ago, edjr said:

  

Forget about moving to Texas or Florida, In all honesty. What is the best country to move to? 

We are lining up some places in Italy......lots of reasons to be there instead of here lately.....

[BeachGuy23 642]

1 minute ago, RLLD said:

We are lining up some places in Italy......lots of reasons to be there instead of here lately.....

LMFAO

Italy is more liberal and in way worse financial shape than the US boyo.

[BeachGuy23 642]

Boyo I'll expect an update on the national debt in a month when the bigly tax receipts are in.

Your chicken little headline ain't fooling those of us who know.

[weepaws 3,193]

Lol, I think it’s just a number now, there isn’t any money involved.  

[TheNewGirl 1,491]

3 minutes ago, edjr said:

  

Forget about moving to Texas or Florida, In all honesty. What is the best country to move to? 

Not sure specifically, but lots of countries have pretty cut and dry immigration laws. Like Germany. Have to have a job, know the language, live there 8 years, things like that. Be able to speak the language fluently. I know there is more to it, but so many countries have very specific rules if you want to be a citizen. It's not just a "Oh, sure, here's your court date and we're totally backlogged, but we will get back to you..." and who cares if you work, don't speak the language and kind of disappear off into society. 

MANY countries require that you have proof of a job to live there. I'd have to research about a specific country and get back to you. But yes...not any where in the US, or even Canada, IMO. 

[RLLD 4,230]

Just now, BeachGuy23 said:

LMFAO

Italy is more liberal and in way worse financial shape than the US boyo.

No, actually it is not, but that is less of a factor so much as our love for places like Umbria, Tuscany and others.   We are considering buying a place in Orvieto at the moment, love that place.

[seafoam1 3,025]

But TRUMP!!! 

[BeachGuy23 642]

3 minutes ago, RLLD said:

No, actually it is not, but that is less of a factor so much as our love for places like Umbria, Tuscany and others.   We are considering buying a place in Orvieto at the moment, love that place.

So no socialized healthcare?

They have closed borders?

They didn't have covid lockdowns?

They aren't getting less white?

[Baker Boy 1,699]

5 minutes ago, BeachGuy23 said:

Boyo I'll expect an update on the national debt in a month when the bigly tax receipts are in.

Your chicken little headline ain't fooling those of us who know.

The federal government closed out its 2023 fiscal year in September having spent $659 billion on interest payments, up from $476 billion in fiscal 2022 and $352 billion in fiscal 2021.

[RLLD 4,230]

Just now, BeachGuy23 said:

So no socialized healthcare?

They have closed borders?

They didn't have covid lockdowns?

They aren't getting less white?

Do YOU require socialized healthcare? Why?

Do YOU now support closed borders? Why?

Do YOU want more COVID lockdowns? Why?

Do YOU require more white people? I hope not....that is sorta crossing a line IMHO

[BeachGuy23 642]

Just now, Baker Boy said:

The federal government closed out its 2023 fiscal year in September having spent $659 billion on interest payments, up from $476 billion in fiscal 2022 and $352 billion in fiscal 2021.

True.

Trump's unprecedented increase of $8T to the debt in just four horrible years combined with the rate hikes necessary to beat back Trumpflation really increased our debt service cost.

As with most things, any negative in our country today, save the border, had its origin in those four, long terrible years. 

[EternalShinyAndChrome 4,106]

f@ck larry fink.

[BeachGuy23 642]

Just now, RLLD said:

Do YOU require socialized healthcare? Why?

Do YOU now support closed borders? Why?

Do YOU want more COVID lockdowns? Why?

Do YOU require more white people? I hope not....that is sorta crossing a line IMHO

I'm not the one thinking of fleeing the US boyo.  So those questions are meaningless to me.

You however are due to, I assume, what you see as a declining US.

[Baker Boy 1,699]

5 minutes ago, BeachGuy23 said:

True.

Trump's unprecedented increase of $8T to the debt in just four horrible years combined with the rate hikes necessary to beat back Trumpflation really increased our debt service cost.

As with most things, any negative in our country today, save the border, had its origin in those four, long terrible years. 

Living is easy with eyes closed, misunderstanding all you see.

[RLLD 4,230]

2 minutes ago, BeachGuy23 said:

I'm not the one thinking of fleeing the US boyo.  So those questions are meaningless to me.

You however are due to, I assume, what you see as a declining US.

Fleeing.....I think you should consider that your behavior to apply intent to people is really immature, and you should avoid such behaviors....

Umbria is my preferred area, Tuscany is my wifes preferred.the reasons are varied but I think she prefers more easy access to urban areas like Florence or Rome, whereas I prefer the peaceful life out in the more remote; there are some other considerations that have attractive options, Sardina etc.

[BeachGuy23 642]

3 minutes ago, RLLD said:

Fleeing.....I think you should consider that your behavior to apply intent to people is really immature, and you should avoid such behaviors....

Umbria is my preferred area, Tuscany is my wifes preferred.the reasons are varied but I think she prefers more easy access to urban areas like Florence or Rome, whereas I prefer the peaceful life out in the more remote; there are some other considerations that have attractive options, Sardina etc.

Ah, you posted in a thread bemoaning the condition of the US, so I naturally assumed you were being pushed out rather than pulled out.  People have been pulled to other countries forever.

[Hardcore troubadour 15,433]

Kinda hope Biden wins. Then a couple of years from now we can listen to president Kamala still blame everything on Trump and white supremacy. 

[BeachGuy23 642]

4 minutes ago, Baker Boy said:

Living is easy with eyes closed, misunderstanding all you see.

Trump didn't increase the debt $8T?

He didn't enjoy essentially free money?

The Fed didn't have the money printers turned on all of the 2010 - 2020?

Supply chains weren't destroyed when Trump slunk away?

Aware me what I posted that isn't fact boyo. 

[RLLD 4,230]

1 minute ago, BeachGuy23 said:

Ah, you posted in a thread bemoaning the condition of the US, so I naturally assumed you were being pushed out rather than pulled out.  People have been pulled to other countries forever.

Correct.  You applied intent......you need to stop doing that.  Constantly making your ideological opponents evil in some way is just a horrible way to think.

[Cdub100 3,908]

Money printer go brrrrrr

[BeachGuy23 642]

4 minutes ago, RLLD said:

Correct.  You applied intent......you need to stop doing that.  Constantly making your ideological opponents evil in some way is just a horrible way to think.

I don't disagree that I shouldn't always apply intent.  But nowhere did I suggest you were evil.

That's hyperbole.

YOU should stop doing that boyo. 

[Hardcore troubadour 15,433]

It was bi-partisan! 

[MDC 7,427]

The fiscal hawks are back! May be going away in November depending on the outcome.

[Baker Boy 1,699]

8 minutes ago, BeachGuy23 said:

Aware me what I posted that isn't fact boyo. 

I remember this gem

Quote

On 3/27/2024 at 12:52 PM,  BeachGuy23 said: 

What relevance do the last 100 years have to do with now boyo?

EVERY major advance of the last 40 years has been conceived and created by liberal scientist and researchers.  This fact is undeniable.  

 

[BeachGuy23 642]

2 minutes ago, Baker Boy said:

I remember this gem

 

Do you have something to prove otherwise?  Oh wait, you're going to find one example of some random conservative scientist finding something and declare victory.

Just LOL at you.

But I still won't believe it until you find it.  1984 - now, find me the breakthrough created by some conservative group or person boyo. 

[RLLD 4,230]

13 minutes ago, BeachGuy23 said:

I don't disagree that I shouldn't always apply intent.  But nowhere did I suggest you were evil.

That's hyperbole.

YOU should stop doing that boyo. 

All good.

[Baker Boy 1,699]

13 minutes ago, BeachGuy23 said:

Do you have something to prove otherwise?  Oh wait, you're going to find one example of some random conservative scientist finding something and declare victory.

Just LOL at you.

But I still won't believe it until you find it.  1984 - now, find me the breakthrough created by some conservative group or person boyo. 

You stated what you called a ‘fact’ and can’t prove it. All I am asking you to do is back up your lie or admit you were wrong. It should be easy for you.

once you clear this up, we can continue.

Quote

On 3/27/2024 at 12:52 PM,  BeachGuy23 said: 

What relevance do the last 100 years have to do with now boyo?

EVERY major advance of the last 40 years has been conceived and created by liberal scientist and researchers.  This fact is undeniable.  

 

 

[Hardcore troubadour 15,433]

Shitty border deal with a handful of republicans in the senate on board - Bi partisan.  Covid spending bill that Pelosi and the Senate passed overwhelmingly, Trump! 

[Baker Boy 1,699]

Entitlement programs account for roughly 70% of government spending.

[seafoam1 3,025]

This is an easy explanation...TRUMP!!! 

[edjr 6,590]

7 minutes ago, Baker Boy said:

Entitlement programs account for roughly 70% of government spending.

brutal.  wouldn’t it be cheaper to get them a one way ticket to a country of their choosing?