Debt Crisis
The U.S. national debt is a major issue. And as time passes, this issue brings the country’s sovereignty into question. Our national debt—the money owed by the U.S. government and, ultimately, the taxpayers—stands close to $17.0 trillion and growing. (Source: Treasury Direct, last accessed April 19, 2013.) Sadly,…
In 1980, the total outstanding debt in the U.S. bond market was about $2.5 trillion—this included municipal bonds, Treasury bonds, money market instruments, corporate debt, and asset-backed securities. Fast-forward to 2012, and the U.S. bond market stands at $38.13 trillion—an increase of more than 1,400%! (Source: Securities Industry…
U.S. bonds could be entering dangerous territory. According to Bank of America Merrill Lynch indices, 30-year U.S. bonds have declined more than five percent so far in 2013. Their decline in January 2013 was 4.3%—the biggest monthly decline since March 2012. (Source: Bank of America Merrill Lynch, February…
The threat of another credit rating downgrade for the U.S. national debt is increasing. But it’s not just due to the government’s inability to control its deficit; it’s about items not considered in budget talks. Student debt, for example, which has become increasingly guaranteed by the government, currently…
While debt-infested countries in the eurozone are struggling to decrease their budget deficits, the U.S. government is reporting an increase in its deficit. For the fiscal year of 2012, the federal government budget deficit was $1.09 trillion, slightly below 2011’s deficit of $1.29 trillion. (Source: U.S. Department of…