debt Archives

U.S. Economy: Bessent May Tap U.S. Treasury’s General Account to Buy Bonds

24Aug

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

U.S. Economy: Bessent May Tap U.S. Treasury’s General Account to Buy Bonds

As U.S. Debt Tops $40 Trillion, Debt-Holders Demand Higher Yields August 24, 2026—One of the most notable effects of soaring U.S. national debt are the rising yields on Treasury’s long-term bond market. Bond investors are simply no longer willing to invest in U.S. long-term debt unless the risk premium on those bonds pay higher yields. Since July, yields on Treasury’s long-term bonds have steadily risen. The 10-year and 20-year bonds rose climbed above 5.2 and 5.25, up from 4.7 and 4.74 earlier this year. Meanwhile, the 30-year bond rose by 11.49 percent in the past six months, up to 5.23 percent today. When it peaked at 5.30 percent earlier in the month, it was a two-decade high. That might not seem significant to everyone, but interest rates on long-term debt impact everything f...

U.S. Budget Deficit FY2026 on Track to Top $2 Trillion

10Feb

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Bit

U.S. Budget Deficit FY2026 on Track to Top $2 Trillion

February 10, 2026—The U.S. budget deficit is on track to top $2 trillion this year. In the first four months of fiscal year 2026, which started on October 1, 2025, the federal government ran a deficit of $696 billion. Revenues increased by 12 percent with higher receipts coming into the government from individual taxes and tariffs. The customs duties saw an increase of $90 billion, four times the amount the government received in 2025. Individual income taxes are projected to reach $925 billion in FY2026. Government spending held steady in the first four months at $2.4 trillion. The largest expenditures in the first four months were: Social Security ($538 billion), Medicare ($402 billion), net interest on the debt ($351 billion), and defense ($324 billion). The data comes from the...

27Jan

By Patti MohrNo Comments

Domestic Politics: Europe, EU, Eurozone, Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Infographic

The Rise in Government Debt, 2000-2024

Debt-to-GDP is Soaring in These 20 Countries January 27, 2026—Debt is soaring across the world, but especially in countries considered part of the West. Five out of the seven G7 countries are in the top 10 debtor countries. Debt is measured as a ratio of the size of the economy (gross domestic product). See below how government debt in some countries, such as Japan, the United States, United Kingdom, France, Spain, and Canada, grew over the past two decades. *The illustrations do not include data from Mexico, Bangladesh, Myanmar, Singapore, most countries in Africa, including Libya, Eritea, Sudan, Kenya, and South Africa, and several countries in South America and Central America. Source: IMF The 20 countries with the highest government debt. Source: IMF

1Jul

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

Senate Clears Trump’s Mega Budget Bill

Tax Cut Extension Would Increase the U.S. Debt by $4.2 Trillion July 1, 2025--The Senate approved President Trump's signature budget and policy bill today, as Vice President JD Vance broke a tie vote, clearing the bill for the House. The legislation, formerly known as the "Big, Beautiful Bill," would reduce taxes on the wealthy, cut the SNAP food aid program, and reduce the Medicaid healthcare for low-income people by $1 trillion. Furthermore, H.R. 1 would implement significant budgetary and policy changes. The new text totals 887 pages.The bill masks an estimated $3.3 to $3.8 trillion revenue loss to the federal budget. The bill, H.R. 1, would raise the current U.S. national debt of $37 trillion to historic new highs. The House passed a different version of the bill in May, rockin...

22May

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

House Passes Massive Budget Bill

Big, Beautiful Bill Would Add $3.8 Trillion to the $36.9 Trillion U.S. Debt The House passed a significant budget bill in the wee hours of the morning that would add $3.8 trillion to the U.S. debt of $36.89 trillion. The chamber voted 217-212 on final passage at 2:30 a.m. "The House has passed generational, truly nation-shaping legislation," House Speaker Mike Johnson said. Trump’s party, the Republicans, control both chambers of Congress. They have a 220-212 majority in the lower chamber. Next, the Senate will take up the measure. It is divided on a 53-47 margin. 'Big and Beautiful' Basics Called “The Big, Beautiful Bill,” H.R. 1 is 1,100 pages long. A summary of it is available through Congress.gov here. For details to changes to federal spending, see the CBO. On ...

United States: The Big, Beautiful Bond Drop

21May

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

United States: The Big, Beautiful Bond Drop

Trump Budget Plan Prompts Rating Drop And Loss of Confidence in Treasuries May 21, 2025—The bond markets for long-term U.S. Treasuries spoke clearly on Wednesday, and it wasn’t pretty. The 30-year Treasury yield rose to 5.096 percent as bond dealers sold off U.S. long-term debt holdings. The bond markets underpin a country's economic stability. Volatility in government bonds can impact politics, as it did in the United Kingdom under the short-term leadership stint of Liz Truss. Now, President Trump is testing the limits as he pushes forward a multitrillion-dollar budget plan for the next 10 years. Trump and House Republicans call it the tax cut and budget plan the “big, beautiful bill,” but today, the bond markets signaled their displeasure. Furthermore, the Financial Times warned...

U.S. Massive Deficits Pose ‘Significant Risk’ for the Global Economy

19Apr

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

U.S. Massive Deficits Pose ‘Significant Risk’ for the Global Economy

IMF Warns the United States and China about Massive Deficits April 19, 2024--Even though consumer prices are coming down, high interest rates due to U.S. and China's deficits pose significant costs to other countries and carry a risk to global financial stability, the International Monetary Fund warned this week. "Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar. It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks," said Vitor Gaspar, IMF director of fiscal affairs. Rising Debt Poses Costs By the end of the decade, global debt is likely to reach 99 percent of global GDP. The rising debt levels are increasing "volatility in the United States, raising risks elsewhere thr...

U.S. Treasury Secretary Warns — Again — About Breach Of Debt Limit

9Sep

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

U.S. Treasury Secretary Warns — Again — About Breach Of Debt Limit

Photo by Alexander Schimmeck, courtesy Unsplash U.S. Government Likely to Run Out Of Cash By October Without Act of Congress September 9, 2021--U.S. Treasury Secretary Janet Yellen wrote another letter to leaders of Congress yesterday, pleading for lawmakers to authorize a higher level of government spending than the $28.7 trillion currently owed. Having breached the last debt limit long ago, Treasury is relying on extraordinary measures, such as suspension of making payments to certain disability and benefits funds and thrift savings plans, to pay its bills. Like Yellen's last letter in July, the Sept. 8 letter does not mention the amount of the current U.S. debt. Neither does it mention that the U.S. government surpassed the last debt limit of $22 trillion long ago. Congre...

15May

By Patti MohrNo Comments

Domestic Politics: United States, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

U.S. House Primed to Vote on Massive $3 Trillion Stimulus

May 15, 2020-The U.S. House is scheduled to vote today on a new supplemental spending bill for the current fiscal year. It's the fifth in a series of COVID-19 related stimulus bills, and it is massive in both physical size and its $3 trillion expense. Called the HEROS Act, the 1,815-page bill would extend unemployment benefits to furloughed workers for an additional six months, provide direct payments to businesses, give additional checks worth up to $1,200 for individuals, provide health care to unauthorized immigrants, financial support to farmers, renters and workers and $1 trillion for states and local governments. The Congressional Budget Office, which normally provides estimates for spending bills, has not published a report on the bill. Partisan Support Democrats are sp...

21Jan

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

Global Debt Rises to $188 Trillion

In case you missed it... (We did!) Jan. 21, 2020-Global debt rose by $3 trillion in 2018 to reach $188 trillion, according to data released late last month by the International Monetary Fund. The data suggests many countries will be "ill-prepared" for the next economic downtown, an IMF blog post asserted. Referencing the data in an interview today with CNBC, IMF chief Kristalina Georgieva said the low interest rates fueled higher risk investments, such as stocks. She added that loose monetary policies are responsible for a significant amount of global growth.