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  1. #1
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    US national-debt load surpasses $22 trillion!

    The US national-debt load surpassed $22 trillion on Monday, according to the Treasury Department. It's the first time that the total outstanding public debt has topped that threshold.

    A little less than $16.2 trillion of that debt was held by the public in the form of Treasurys, while the other $5.8 trillion was intragovernmental holdings.

    The amount of debt being accumulated is also accelerating because of recent changes. The budget deficit in fiscal year 2018 (October 2017 to September 2018) hit $779 billion. The deficit measures the amount of revenue the government pulls in minus the government's expenditures.

    Additionally, a Treasury report estimated the total amount of debt issued during 2018 topped $1.3 trillion: the largest issuance of new debt since 2010.

    The recent acceleration in outstanding debt was driven by two recent legislative changes. The first was the tax-reform law pushed by President Donald Trump and passed by the GOP. The law is projected to add about $1.5 trillion to the debt over the first 10 years it is in effect.

    The second was the large, bipartisan budget deal that passed Congress. The combination of slashed tax rates, lowering government revenue, and increased spending adds up to a higher debt load.

    Traditionally, economists have warned that the high levels of government debt would cause problems for the US economy as private investment is crowded out by public debt.

    But recently, progressive lawmakers, such as Rep. Alexandria Ocasio-Cortez, and some economists have started to latch on to modern monetary theory (MMT), an idea that posits the nominal amount of debt the US holds is not in and of itself an issue.

    https://www.businessinsider.com/us-n...history-2019-2
    Last edited by MenInG; 13th February 2019 at 21:08.


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  2. #2
    Debut
    May 2014
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    chennai
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    How were people convinced its not an issue?
    I pity the college students of USA , they get stick from Boomers ,have to repay huge loans and deal with much smarter immigrats who r ready to work for a lower pay check without having to deal with college debt.

  3. #3
    Debut
    Nov 2005
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    England
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    Debt is not such a big problem for the USA because institutions still lend them money at incredibly low interest rates, and they enough Money to pay back the interest and the Principle. And confidence is such that when they do get into serious problems as in 2008, they print money and give it a fancy name like quantitive easing and no one bats an eye lid. But the system will collapse when least expected and then everyone will asking how we got here.


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