American Enterprise Institute warns U.S. military spending in Middle East conflicts will expand fiscal deficit and drive long-term interest rates higher, as government debt spirals out of control despite expectations for flight-to-safety in bond markets.
#YonhapInfomax #FiscalDeficit #LongTermInterestRates #MilitarySpending #AmericanEnterpriseInstitute #GovernmentDebt #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=109988
'US War Spending to Widen Fiscal Deficit, Push Long-Term Rates Higher'

American Enterprise Institute warns U.S. military spending in Middle East conflicts will expand fiscal deficit and drive long-term interest rates higher, as government debt spirals out of control despite expectations for flight-to-safety in bond markets.

Yonhap Infomax
#IMF: in 2020, faced with the worst #economic #collapse since the Great Depression, #governments began to borrow extensively. #Advancedeconomy #debt jumped by tens of percentage points of GDP; in some countries it exceeded 120 percent #governmentdebt #publicdebt #governmetborrowing
The New York Fed reports that the natural rate of interest (R-star) has risen by about 100 basis points since the pandemic, driven by declining Treasury appeal, global debt surges, and productivity gains from AI, signaling a shift in global financial conditions.
#YonhapInfomax #NewYorkFed #NaturalRateOfInterest #TreasuryYield #GovernmentDebt #ArtificialIntelligence #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=106979
New York Fed Estimates Rise in R-Star as Treasury Appeal Declines

The New York Fed reports that the natural rate of interest (R-star) has risen by about 100 basis points since the pandemic, driven by declining Treasury appeal, global debt surges, and productivity gains from AI, signaling a shift in global financial conditions.

Yonhap Infomax

UK Government Records £30.4 Billion Surplus for January as Tax Revenue Increases

UK government had a record £30.4 billion surplus in January 2024. Find out why tax revenue was higher than expected and what it means for national debt.

#UKSurplus, #JanuaryFinance, #TaxRevenue, #GovernmentDebt, #EconomicNews

https://newsletter.tf/uk-government-records-record-30-4-billion-surplus-in-january-due-to-higher-tax-income/

The UK government recorded a record £30.4 billion surplus in January 2024, which is double the amount from last year. This means more money came in than went out for the month.

#UKSurplus, #JanuaryFinance, #TaxRevenue, #GovernmentDebt, #EconomicNews

https://newsletter.tf/uk-government-records-record-30-4-billion-surplus-in-january-due-to-higher-tax-income/

UK Government Records Record £30.4 Billion Surplus in January Due to Higher Tax Income

UK government had a record £30.4 billion surplus in January 2024. Find out why tax revenue was higher than expected and what it means for national debt.

Major central banks are scaling back their roles as ultimate buyers of government debt, intensifying competition for debt capital as private institutions must absorb more issuance and long-term rates become increasingly sensitive to fiscal and market dynamics.
#YonhapInfomax #CentralBanks #QuantitativeEasing #GovernmentDebt #PrivateCapital #LongTermRates #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=106227
[Era of Debt Capital Competition-③] Central Banks - The Era of Reliable Money Supply Is Ending

Major central banks are scaling back their roles as ultimate buyers of government debt, intensifying competition for debt capital as private institutions must absorb more issuance and long-term rates become increasingly sensitive to fiscal and market dynamics.

Yonhap Infomax
Japanese Prime Minister Sanae Takaichi announced plans to actively consider a two-year consumption tax exemption on food and beverages, stressing that fiscal policy will remain prudent and avoid undermining market confidence.
#YonhapInfomax #SanaeTakaichi #ConsumptionTax #FiscalPolicy #GovernmentDebt #JapanEconomy #Economics #FinancialMarkets #Banking #Securities #Bonds #StockMarket
https://en.infomaxai.com/news/articleView.html?idxno=106031
Japanese Prime Minister to Actively Consider Tax Cuts—Fiscal Policy Will Not Be Reckless

Japanese Prime Minister Sanae Takaichi announced plans to actively consider a two-year consumption tax exemption on food and beverages, stressing that fiscal policy will remain prudent and avoid undermining market confidence.

Yonhap Infomax
US 10-Year Treasury Yield Rises Further on Weak Auction Demand

US 10-year Treasury yields climb as lackluster auction results fuel concerns over demand for government debt.

Yonhap Infomax
Bloomberg: #Chinese #regulators advised #banks to rein in their holdings of #US #governmentdebt, citing concerns over concentration risks and #market #volatility.

“The U.S. #governmentdebt is still growing strongly with no apparent plan to contain it,” he said. “And the institutions that have underpinned the dollar’s dominance are being shredded before our eyes. All of this should be enough to bring down the dollar a few more pegs, if not demolish it altogether.”

#economy #trump #tariffs #tradewar

https://www.newyorker.com/news/the-financial-page/how-trump-is-debasing-the-dollar-and-eroding-us-economic-dominance

How Trump Is Debasing the Dollar and Eroding U.S. Economic Dominance

John Cassidy on how the Trump Administration’s policies are affecting the worth of the U.S. dollar, which influences the market’s pull with foreign investors.

The New Yorker