Along with the US national government. About $17 trillion not owed to itself. Added 0.7 trillion in 2017.
Cost to finance $17T per year at various interest rates (today's average rate on the US debt is about 2%):
rate, cost($B), % of 2017 Fed income
2%, 340, 15%
3%, 510, 22%
5%, 850, 37%
8%, 1360, 59%
10%, 1700, 74%
As you can see by this chart (sorry about the formatting), the Fed has to keep interest rates low or the US will have little choice but to default on the debt.
I think a lot of people who ponder such things have concluded that the Fed will keep the interest rates low and the US will/are fudge/fudging the inflation numbers so that the Fed can still claim they are hitting their 2% target even though asset prices go through the roof. Who knows what the end game on such a plan will be, but some form of hyperinflation is not out of the question. All those people who are too scared of losing value on investments and just parking their savings in cash, will be very disappointed and confused if that happens.
> Thus, $4.1 trillion in consumer debt works out to $12,638 per person.
> The Gross Domestic Product (GDP) in the United States was worth 18036.65 billion (about $18 trillion) US dollars in 2015. That is about $55,424 per person.
Another important number: Wealth in the U.S. is ~$90 trillion, or ~$270,000 per person. That makes $13,000 in debt seem easier to support.
Of course it depends highly on the distributions of wealth and debt. $80 billion of that wealth are in one person's hands, for example; he doesn't have debt problems.
> Unfortunately, interest on that debt is real and is owed to other countries.
Most of that debt is internal.
Highlights from the March 2021 report
* Federal Reserve and government: $10.81 trillion (December 2020)
* Foreign: $7.07 trillion (in September 2020, Japan owned $1.28 trillion and China owned $1.06 trillion of U.S. debt, which is more than a third of foreign holdings)
* Mutual funds: $3.5 trillion
* Other holders, including individuals, government-sponsored enterprises, brokers and dealers, banks, bank personal trusts and estates, corporate and non-corporate businesses, and other investors: $2.28 trillion
* State and local governments, including their pension funds: $1.09 trillion
* Private pension funds: $784 billion
* Insurance companies: $253 billion
* U.S. savings bonds: $147 billion (December 2020)
This title is completely wrong. The article estimates the US has accumulated around $2 trillion in war debt as of 2020. It goes on to estimate interest payments will equal $2 trillion by 2030 and $6.4 trillion by 2050.
The math: We currently bring in 3.34 trillion in tax revenue per year. Our outstanding debt is 22 trillion with a yearly 2% interest payment of $440 billion.
If the debt hits 174.2 trillion (which is only x8 what it is now) then we will have to spend the entire budget just to make interest payments.
If we default the dollar is likely to collapse. The value of the US dollar is propped up by US Government bonds.
Even worse, $19T added to the debt is an extreme lowball by some expectations. Many estimates put the US national debt closer to $90T by the end of the decade.
The country is right on the edge of walking into one of the most expensive wars in its history as well as a few delayed economic disasters that would kick the money printer into much higher gear.
Trump adding $10T+ in a relatovely uneventful 4 years even before the massive inflation spike hit should give you an idea how quickly diminishing returns on QE can escalate spending.
$1 trillion is not a lot of money for the US. the Congressional Budget Office estimates that interest spending on US public debt will hit $915 billion in 2028[1].
Yea, 281 billion is just not a lot of money when your talking US debt around ~1.5% federal and a little less if you toss in state and local. In just about any other context that's a lot of money.
https://www.bloomberg.com/graphics/2019-negative-yield-debt/
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