The total public debt of the United States for the first time exceeded $19.5 trillion and continues to grow: by March 2017 it is estimated the U.S. Treasury will rise to $20 trillion. To deal with the problem would have been no Barack Obama, and the winner of the next presidential election.
This week, the total public debt of the United States for the first time in history exceeded $19.5 billion, an increase from the January 2016 $500 billion, the report said the U.S. Treasury Department. In 2009 when the President took Barack Obama — the debt was $10,63. Until mid-March 2017 the growth of debt will not be restricted by the authorities, therefore, according to the forecast of the Ministry of Finance by the end of the second presidential term of Obama, the liabilities will rise to $20 trillion, notes the Washington Examiner.
In August budget Committee of Congress reported that by the end of the fiscal year (September 2016) the ratio of debt to GDP will grow by 3 percentage points to 77%. This is the maximum since 1950, when the country was actively paying off its debts from the Second world war. Over the next 10 years, the debt to GDP ratio will rise to 86% in the forecast Committee.
Debt is calculated as total annual budget deficits plus interest payments. Barack Obama has repeatedly mentioned its intention to reduce the budget deficit, but during his administration the index consistently exceeded $1 trillion, and only in recent years it fluctuates around a more acceptable figure of $500 billion (this year, it is expected that the deficit will amount to $590 billion, or 3.2% of GDP). While still a Senator, Obama criticized his predecessor as President George W. Bush over the levels of fiscal deficit and called it a “failure” of the authorities (with the Republican deficit reached $1.4 trillion).
To solve the problem of control of the budget deficit (and, consequently, increasing the national debt) have been the next President, whoever won the election. To consider legislation to raise the debt ceiling will need to be March 15 (until that time the official restrictions have been lifted).
Neither Donald trump, nor Hillary Clinton, are major rivals in the presidential race, did not Express a specific solution to this problem, most likely, because so far nobody has a clue how to do it.
In April of this year, trump saidthat will pay off the existing debt in eight years, two presidential terms. However, most economists believe that trump described methods (revision of trade and military agreements with creditors) the desired effect will not give.
In the words of trump is not right: “Politicians use benefit from debt now, buying votes in exchange for the promise of a good life and pay these accounts provide future generations”. As a result, today the Federal government pays about 2.5% on the debt, that $20 trillion is about $500 billion annually, notes US News.
In addition, the growth of public debt increases the pressure on the fed that cannot raise its key interest rate, despite their opinions about the development of the economy. Now the debt is so large that the growth rate is 1 percentage point will result in an increase its volume to $200 billion a year, which, of course, no one wants.
While government bonds remain one of the most reliable investment, given the low volatility in the market.
Previously, the Federal Treasury for the first time since the 1970-ies has published detailed information about the main creditors of the United States: country-specific report is usually hidden behind a conditional group “of countries — exporters of oil” or “Caribbean financial centers,” reports Business Insider.
The holder of the largest part of the debt was China, with $1,244 trillion, followed by Japan ($1,137 trillion), close the three Cayman Islands ($265 billion). Russia was in the top 20 creditors of the United States, owning bonds at $86 billion, is more than, for example, the United Arab Emirates.
