Krishna Bayanna’s Post

Many governments have done what is described below at the example of the UK, with debt burdens ever increasing. Who will ever repay this debt? Ever since the late 1990s successive UK governments have adopted fiscal rules that seek to contain levels of public sector debt. When shocks have hit, these rules have been broken or eased, giving the government the freedom to raise spending and borrowing. It is an irony that the age of fiscal rules has seen levels of public sector debt rise from around 30% to over 90% of GDP. When a crisis hits, plans go out of the window. Or, as Mike Tyson put it: “Everybody has a plan until they get punched in the mouth”. #sovereigndebt #debt #governmentspending #economy

"U.S. public debt should not be a cause for immediate concern, but either higher taxes or inflationary policy will be necessary," writes Prof. Enrico Colombatto in his newest report: https://lnkd.in/dGyXz5u4 Geopolitical Intelligence Services #debt #ratings #inflation #centralbanks #austrianecon #austrianeconomics

As the #NationalDebt grows, we will face: ⬆ Elevated interest rates 📈 Inflation 👥 Reduced public investment 📣 Lawmakers need to act to stabilize the debt and put the federal budget on a sustainable course: bit.ly/3zZH7Zc #Bipartisan #EconomicPolicy #Finance

Government Debt Across Major Economies The government debt-to-GDP ratio is a key indicator of a country’s financial health. It provides insight into the government’s capacity to manage its debt, shapes fiscal policy flexibility, and plays a crucial role in influencing investor confidence. #inflation #taxes #regulations #economy #debtcrisis

President Joe Biden and the Republican-controlled House of Representatives are at odds over raising the national debt limit, with Republicans pushing for significant spending cuts in exchange. However, President Biden has emphasized that the debt limit should not be a budgetary bargaining chip. Public concern about federal spending is mounting, with 57% of Americans prioritizing reducing the budget deficit this year, up from 45% last year. Both parties are increasingly worried, but Republicans are more inclined to view deficit reduction as a top priority. Currently at the $31.38 trillion debt limit, the government can delay default using accounting maneuvers. The stalemate between the administration and the House persists, keeping the standoff ongoing. Stay informed on the intricacies of the U.S. national debt. #economy #future #innovation

The national debt is expected to reach its highest level in history. According to a new analysis from the Congressional Budget Office, the national debt will increase to 122 percent of GDP in 2034, compared to 99 percent today. The previous high was 106 percent in 1946, at the end of World War II. We don't know exactly what level of public debt is unsustainable but the current trajectory of historic high debt levels coupled with higher interest rates will definitely constrain future budget flexibility and economic potential. https://lnkd.in/gpQmiTKQ #economy #debt #cbo

OUR RESPONSE TO THE HOUSE OF LORDS REPORT ON THE NATIONAL DEBT 🚨 Responding to the House of Lords economic affairs committee report on the national debt, John O’Connell, chief executive of the TaxPayers' Alliance, said: “Taxpayers will be horrified by the warnings that the national debt risks becoming unsustainable. “The report clearly states that the government can no longer afford to ignore the catastrophic state of the public finances, with the country rapidly approaching a cliff edge. “Ministers need to bring spending under control and start to bring down our crippling national debt." https://lnkd.in/eJZUTSV3

The U.S. federal debt has surpassed $35 trillion, reflecting public and intra-governmental obligations. This immense figure underscores current economic pressures and the urgent need for fiscal reform. Addressing this challenge is essential for securing long-term economic stability and resilience. #Economy #Debt #Inflation

“We need a fiscal council to offer independent estimates of the public debt trajectory if this measure is to act as the country’s new anchor of fiscal policy,” writes Niranjan Rajadhyaksha, Executive Director at Artha Global, in LiveMint. Niranjan considers how a shift from an annual fiscal deficit to the public debt ratio change will affect how the government manages finances and outlines how to effectively communicate these changes. A global shift that favours sustainable public finances over the medium term rather than the content of the annual budget has led to a change in focus from the flow of government borrowing to the stock of public debt. Read more here: https://bit.ly/4ddHnSL