{"id":43166,"date":"2019-01-26T08:25:08","date_gmt":"2019-01-26T13:25:08","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43166"},"modified":"2019-01-26T08:25:28","modified_gmt":"2019-01-26T13:25:28","slug":"u-s-debt-worries-fed-chairman-powell-fears-may-be-confirmed-in-march","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43166","title":{"rendered":"U.S. Debt Worries Fed Chairman Powell \u2013 Fears May Be Confirmed in March"},"content":{"rendered":"\n

U.S. Debt Worries Fed Chairman Powell \u2013 Fears May Be Confirmed in March<\/a><\/strong><\/h3>\n\n\n\n
\"us<\/figure><\/div>\n\n\n\n

As we enter 2019, the U.S. national debt<\/a> continues to grow, approaching $22 trillion with global Government debt sitting at $72 trillion.<\/p>\n\n\n\n

It seems like the 21st century is hitting the U.S. with a debt \u201chaymaker,\u201d according to CNBC<\/a> (emphasis ours):<\/p>\n\n\n\n

U.S. debt began accelerating at the turn of the 21st century. The total jumped 85 percent to $10.6 trillion<\/strong> during former President George W. Bush\u2019s two terms, another 88 percent to $19.9 trillion<\/strong> under President Barack Obama and has risen 10 percent<\/strong> during the first two years of President Donald Trump\u2019s term.<\/p><\/blockquote>\n\n\n\n

And even though the U.S. economy may be growing, the sustained annual deficit exceeds $1 trillion. This is concerning economists, including Chairman Powell<\/a>:<\/p>\n\n\n\n

I\u2019m very worried about it\u2026 It\u2019s a long-run issue that we definitely need to face, and ultimately, will have no choice but to face.<\/p><\/blockquote>\n\n\n\n

If a recession hits (and signals<\/a> are potentially pointing towards<\/a> one), then having that amount of sustained deficit could be devastating.<\/p>\n\n\n\n

And since the Fed is partially responsible for creating this debt problem, it seems odd for Powell<\/a> to call it a \u201clong-run\u201d issue when it\u2019s more of a \u201cright-now\u201d issue.<\/p>\n\n\n\n

According to a recent CNBC article<\/a>, normally when the deficit is expanding, the \u201cFed would be lowering rates\u201d. But they aren\u2019t. In fact, rates have been on a steady rise for the last few years.<\/p>\n\n\n\n

At the global level, the picture isn\u2019t much better. Debt has reached record levels, double<\/strong> what it was in 2007.<\/p>\n\n\n\n

This is \u201cleaving many countries poorly positioned for financial tightening as global interest rates begin to move higher,\u201d says James McCormack, Fitch\u2019s global head of sovereign ratings, in a statement<\/a>.<\/p>\n\n\n\n

Powell and other economists have every right to be concerned, because both debt and deficit spending may be spiraling out of control.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. Debt Worries Fed Chairman Powell \u2013 Fears May Be Confirmed in March As we enter 2019, the U.S. national debt continues to grow, approaching $22 trillion with global Government debt sitting at $72 trillion. It seems like the 21st century is hitting the U.S. with a debt \u201chaymaker,\u201d according to CNBC (emphasis ours): U.S. debt began accelerating at […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,195,201,16888,534,827],"class_list":["post-43166","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-debt","tag-deficit","tag-jerome-powell","tag-monetary-policy","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43166"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43166\/revisions"}],"predecessor-version":[{"id":43167,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43166\/revisions\/43167"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}