The new year kicked off with some significant economic news. The US national debt surpassed $34 trillion for the first time, and economists predicted some concerning downturns. Meanwhile, the political landscape is shaping up to be just as unpredictable. Here’s a recap of the top stories over the weekend.
US National Debt Hits New High
The national debt of the United States has soared past $34 trillion, a first in the country’s history. This alarming figure, revealed by the Treasury Department, marks a steep rise from the $1 trillion mark crossed in 1982. The nation’s debt is the total amount the federal government has borrowed to cover incurred expenses, often through marketable securities such as Treasury bonds and notes. The debt pile had already exceeded $30 trillion in 2022. Read the full article here.
Larry Summers on Trump 2.0 Threat
Former Treasury Secretary Larry Summers has voiced concerns over the economic policies likely to be pursued by the frontrunners in the upcoming presidential race. Summers claims that a second term for President Joe Biden would likely see a continuation of a Keynesian approach to economic management. However, he termed a Trump 2.0 scenario as “very threatening” to the US economy, suggesting that history would judge those who go along with the subversion of American democracy. Read the full article here.
US Office Buildings Face Debt Cliff
US office buildings are bracing for a significant debt cliff, with $117 billion at risk. Diversified real estate investments in the country’s top markets could be a potential solution for this looming crisis. Read the full article here.
Rosenberg Predicts 2024 Economic Downturn
Acclaimed economist David Rosenberg has issued a warning about a potential economic downturn in 2024, which he believes could destabilize the stock market. Rosenberg compares the current situation to the unexpected recessions of 2007 and 2000, cautioning against quick dismissal of a downturn just because it hasn’t happened yet. Read the full article here.
US Manufacturing Downturn Continues
The US manufacturing sector contracted for the 14th consecutive month in December. This marks the longest slump for the sector since 2000-2001, highlighting the ongoing challenges faced by the industry. Despite this, some areas show signs of stabilization, suggesting the rate of decline may be slowing. Read the full article here.
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