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(The Epoch Times)—The U.S. gross national debt surpassed $36 trillion on Thursday, according to Treasury data, while a Federal Reserve report showed intensifying concern about America’s fiscal health and its broader implications for financial stability.
The massive debt milestone was reached just over three months after the previous $35 trillion benchmark, highlighting the rapid accumulation of federal borrowing in recent years. It comes as policymakers brace for renewed debates over spending and taxation, with the incoming Trump administration and the 119th Congress having to contend with the nation’s fiscal trajectory.
“As if lawmakers needed any other reasons to take America’s fiscal health seriously, the gross national debt of the United States has now officially reached $36 trillion,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), said in a statement. “Government borrowing is becoming as certain as the changing of the seasons these days.”
MacGuineas highlighted the risks of rising debt, including slower economic growth, higher inflation, and increased interest rates. She warned that high debt loads constrain fiscal flexibility, hampering the government’s ability to respond to economic downturns or global crises, pointing to $13 trillion in projected interest payments over the next decade as a stark example.
“The incoming Trump Administration and Members of the 119th Congress face several fiscal hurdles from the moment they take office–starting with the reinstatement of the debt ceiling in January and a $1.7 trillion PAYGO scorecard waiting to greet them,” MacGuineas said. “The way they approach that and other crucial decisions ahead like the expiration of discretionary spending caps and the 2017 tax cuts, as well as how they choose to offset the costs of their new policies, will determine our fiscal health for a long time.”
Meanwhile, respondents to a New York Federal Reserve survey that was cited in the Fed’s newly released semi-annual Financial Stability Report identified U.S. fiscal debt sustainability as the most frequently cited near-term risk to financial stability, overtaking concerns about persistent inflation and monetary tightening.
“Concerns surrounding US fiscal debt sustainability were atop the list this survey, followed by escalating tensions in the Middle East and policy uncertainty,” the report’s authors wrote. Fears of a potential U.S. recession and a global trade war also moved up in importance in the latest survey compared to the one carried out in spring.
In the Fed’s discussion of the near-term risks identified in the survey, which was conducted among some two dozen financial sector participants and observers from August to October, the central bank noted that rising geopolitical tensions and potential economic slowdowns could amplify vulnerabilities tied to the nation’s fiscal challenges and lead to “broad adverse spillovers.”
Escalation in conflicts such as the Middle East crisis or the war in Ukraine could disrupt global energy and commodity markets, triggering inflationary pressures and heightened market volatility. The Fed also warned of the potential for a sharp downturn in economic growth, which could lead to steep corrections in asset prices, particularly in overvalued sectors like equities and real estate.
High levels of corporate and nonbank financial institution leverage could exacerbate financial stress, while elevated public debt might limit the government’s ability to respond effectively to such shocks, the report’s authors noted. Further, the report underscored the growing risk of cyberattacks, which could disrupt the financial system by exploiting interdependencies among institutions and components of market infrastructure.
The Fed’s own financial stability assessment focused on a framework of risks across four key areas: asset valuations, borrowing by households and businesses, leverage in the financial sector, and funding risks.
The report noted that asset values “remained elevated,” with liquidity in financial markets remaining low, raising the risk of strain during periods of volatility. Vulnerabilities from business and household debt were described as “moderate,” though delinquencies in auto and credit card loans were elevated.
The banking system was described in the financial stability report as “sound and resilient,” though banks’ market-adjusted capital levels improved only “modestly” and so remain sensitive to interest rate changes. Hedge fund leverage was at its highest level in over a decade, while vulnerabilities in some short-term investment vehicles continued to grow.
Mysterious “Skyquakes” Are Causing Strange “Booms” in the Sky, and Scientists Have No Explanation
by Michael Snyder
(End of the American Dream)—What is causing the extremely loud “booms” that people are hearing in the sky all over the world? We are being told that “skyquakes” are responsible, but scientists have no idea why these “skyquakes” are occurring. In some cases, the “skyquakes” cause such powerful shaking that…
The Biggest Sale on Long-Term Storage Beef EVER
by Sponsored Post
Let’s cut to the chase. Prepper All-Naturals is offering an unprecedented 40% off for it’s “Beef Steak” survival bags with promo code “steak40”. With a 25-year shelf life and a single ingredient (beef, of course), our most popular product is available for a very limited time with the biggest discount…
Seattle Is Ordered to Stop Blocking Illegal Alien Deportations in the Most Hilarious Court Decision Ever
by PJ Media
A federal court has just pooped in the oatmeal of the West Coast, Messed Coast™governors and local election officials suffering from acute cases of Trump Derangement Syndrome who think they can stop illegal alien deportations. And after this hilarious and thorough legal takedown from the 9th Circuit Court of Appeals,…
Illegal Alien Terror Suspect Found Dead in Cook County Jail Cell
by Slay News
An Islamic illegal alien has been found dead in his jail cell after being arrested on terrorism charges. According to CWBChicago, 22-year-old Sidi Mohamed Abdallahi was found dead at the Cook County jail in Illinois on Saturday. Abdallahi was arrested on felony terrorism and hate crime charges in October. He…
Trump’s Wild Bunch Is Ready for Action
by Frank Miele
If for no other reason than that it will elicit fear in the hearts of autocracy-phobics, I propose that Donald Trump’s second-term Cabinet be known as “The Wild Bunch.” The name is best known as the title of Sam Peckinpah’s classic 1969 western featuring a colorful cast of aging outlaws…
FAA Issues Flight Restrictions Over Questionable Drone Activity Near Trump’s Bedminster Golf Course
by Just The News
The Federal Aviation Administration (FAA) on Tuesday said that it has issued two flight restrictions on the area surrounding President-elect Donald Trump’s Bedminster golf club in New Jersey, following questionable drone activity. The drone sightings were first reported on Nov. 18, but have continued into this week, according to Fox…
Ex-FBI Agent Convicted for Stealing From Jan 6 Defendant During Raid
by Trending Politics
A former Houston-based FBI agent has been convicted of stealing valuables and cash while conducting searches. In one instance, the agent stole cash and silver bars from a non-violent January 6 defendant’s home. Nicholas Anthony Williams, 36, was indicted on January 31 in the Southern District of Texas. Williams, who…
Democrats, Media Elite Urge Biden to Pardon Trump’s Alleged ‘Enemies List’
by Breitbart
President Joe Biden should issue preemptive pardons to his political allies and those deemed to be on President-elect Donald Trump’s alleged “enemies list,” Democrats and their media allies believe. Delivering a preemptive pardon indicates an admission of guilt, although Democrats claim a preemptive pardon would only be intended to block…
Fani Willis Forced to Release All Communications With Jack Smith, J6 Committee
by Trending Politics
The Fulton County Superior Court has ruled against District Attorney Fani Willis, ordering her to disclose communications with Special Counsel Jack Smith and the House January 6 Committee. The decision, announced on Tuesday, follows a lawsuit brought by Judicial Watch, a conservative watchdog group, which accused Willis of violating Georgia’s…
Lindsey Graham Is the Warmongering NeoCon Leading the Charge to Upend Pete Hegseth
by JD Rucker
Pete Hegseth represents a shift away from the wokeness that has infected the United States military. This is possibly the biggest reason President-Elect Donald Trump tapped him to be the next Secretary of Defense and the vast majority of Republicans on Capitol Hill can support this, at least for the…
‘Where Are Black Democrats?’: Charles Payne Tells Personal Story to Call Out ‘Huge Double Standard’ of Biden Family
by Nicole Silverio, DCNF
(DCNF)—Fox Business host Charles Payne called out the alleged “huge double standard” of President Joe Biden’s family Tuesday by revealing that his brother, who struggles with a crack addiction, is currently serving a jail sentence. Payne said his brother, who is getting out of jail on Friday, is likely one…
Zelensky Admits Ukraine Can’t Retake All Its Land: ‘We Must Seek Diplomatic Means’
by Breitbart
Ukrainian President Volodymyr Zelensky conceded in an interview on Tuesday that Ukraine does not have “enough forces” to restore sovereignty over Russian-occupied Crimea and “must seek diplomatic means” to end the Russian invasion and regain its land. The state-run Ukrinform outlet reported that Zelensky described Crimea – which Russia colonized…
Ultra-Processed Foods: How Bad Are They for Your Health?
by Olivia Cook
(Natural News)—Despite the serious health risks associated with eating junk food, they remain the most consumed food products in many countries, particularly developed ones. But a review published in The BMJ, which studied 9.8 million people, warns that eating a lot of ultra-processed foods can increase your risk for 32 diseases. Among these are heart…
“Already Pretty Far Down the Line”: The Container Store Could File for Bankruptcy as Soon as Next Year
by Tyler Durden, Zero Hedge
(Zero Hedge)—As the retail apocalypse that started with Amazon and e-commerce continues, the latest victim is The Container Store. The retail giant could file for bankruptcy as soon as next year, according to the New York Post, who said the retailer is blaming its recent descent on “a weak housing…
Mysterious ‘Car-Sized Drones’ Over New Jersey Prompt FBI Investigation
by Zero Hedge
Several weeks of mysterious drone swarms over the skies of one New Jersey county near the military research and manufacturing facility Picatinny Arsenal have sparked concerns among residents and prompted an FBI investigation. “It’s kind of unsettling,” Mike Walsh, a Morris County resident who has spotted the drones on numerous…
UNESCO’s New Mission: Train Influencers About Combatting Online “Misinformation”
by Reclaim the Net
The UN Educational, Scientific and Cultural Organization (UNESCO) is now incorporating teaching influencers how to “fact check” into its activities. UNESCO claims that influencers have become “primary sources of news and cultural information” around the world – which prompted it to carry out a survey into how these online personalities…
