{"id":2057428,"date":"2023-10-05T22:52:01","date_gmt":"2023-10-06T02:52:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-national-debt-soars-275-billion-in-one-day\/"},"modified":"2023-10-05T22:58:32","modified_gmt":"2023-10-06T02:58:32","slug":"us-national-debt-soars-275-billion-in-one-day","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-national-debt-soars-275-billion-in-one-day\/","title":{"rendered":"US National Debt skyrockets by $275B in 24 hours."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-national-debt-soars-275-billion-in-one-day%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2057428&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<div class=\"my-5\">\n<blockquote>\n<p>The \u2064national debt increased by $275 billion in one day, skyrocketing to more than $33.442 trillion, according to the Treasury Department&#8217;s updated <a href=\"https:\/\/fiscaldata.treasury.gov\/datasets\/debt-to-the-penny\/debt-to-the-penny\" target=\"_blank\" rel=\"noopener\">Debt to the Penny dataset<\/a>.<\/p>\n<\/blockquote><\/div>\n<p>In a single month, the national debt saw a more than $600 billion surge. \u2064Since President \u200bJoe \u200cBiden and former House Speaker Kevin McCarthy (R-Calif.) reached a\u2064 debt-ceiling agreement, the federal government&#8217;s total public \u2063debt outstanding has\u200d risen by nearly $2 trillion.<\/p>\n<p>The\u2063 U.S.\u2062 debt challenges\u2064 come as \u2063the\u200c federal \u2062deficit is on track to\u200c reach\u2063 $2 trillion.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/article\/federal-spending-interest-payments-in-focus-as-national-debt-tops-33-trillion-5494810?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Federal Spending, Interest Payments in Focus as National Debt Tops $33 Trillion<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/20\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/article\/federal-spending-interest-payments-in-focus-as-national-debt-tops-33-trillion-5494810?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/us-national-debt-hits-all-time-high-of-32-trillion-5339362?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>US National Debt Hits \u200cAll-Time High of \u200b$32\u2062 Trillion<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">6\/17\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/us-national-debt-hits-all-time-high-of-32-trillion-5339362?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>During the \u200bvolatile situation \u200din Washington, a chorus of hardline conservative Republicans have\u2063 demanded accountability, action, and\u2063 leadership changes to \u200baddress the accelerating national debt.<\/p>\n<p>Rep. Victoria Spartz (R-Ind.), \u2063for example, threatened to resign \u2064if a commission to tackle the national debt and above-trend inflation isn&#8217;t established \u200dby the end of the year.<\/p>\n<p>&#8220;I will not continue sacrificing my children for\u200b this circus with a complete absence of\u2063 leadership, vision, \u200band spine. I cannot save this Republic alone,&#8221; Ms. Spartz \u200bsaid in an Oct. 2 statement.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>But lawmakers \u200caren&#8217;t the only ones sounding the alarm over intensifying U.S. \u200ddebt \u2062obligations. Many economists and market analysts have \u2063recently alluded to a potential debt crisis, especially as interest\u2062 rates and Treasury yields soar.<\/p>\n<p>&#8220;We&#8217;re staring at about $20 \u200dtrillion of debt over the next 10 years, which will bring us over well over $50 \u200dtrillion in a decade from now,&#8221; Les \u200bRubin, \u200dan\u2064 economist and founder and CEO of Main Street Economics, told The Epoch Times. &#8220;All of which\u200b is \u200cunsustainable, and \u2062that&#8217;s exactly what the Treasury Department \u200breports: \u2063The \u2064fiscal path is unsustainable, and there&#8217;s no\u200c sign of it slowing\u2063 down and getting \u2062that.&#8221;<\/p>\n<p>The U.S. government has \u2064no intention of repaying \u200bthis debt, which could force \u200cinvestors to\u2064 hit the bond-buying pause button, he \u2062said.<\/p>\n<p>&#8220;When\u2064 investors everywhere stop having confidence,\u2062 that&#8217;s \u200ca\u2062 cataclysmic problem that will resound throughout the world,&#8221; Mr. Rubin said.<\/p>\n<div class=\"my-5\">\n<blockquote>\n<p>Investor confidence\u2062 and demand have become increasing concerns\u2062 on \u2064Wall\u2064 Street.<\/p>\n<h2>\u2018A \u2064Debt\u2063 Crisis\u2019<\/h2>\n<p>In October 2022, Treasury\u2062 Secretary Janet Yellen told the Securities Industry and Financial Markets Association&#8217;s \u200d(SIFMA) annual\u2063 meeting\u200b in New York that there had\u2063 been a decline of \u2063&#8221;adequate liquidity&#8221; in the enormous\u2062 Treasury market, adding to overall debt-servicing costs.<\/p>\n<\/blockquote><\/div>\n<p>In the\u2063 third quarter, the Treasury \u2064was projected to borrow\u2062 approximately \u200c$1 trillion. In \u2062the fourth quarter, \u200dthe Treasury adjusted \u2062its borrowing estimates by about $100 billion, to $852 billion. This was in addition\u2064 to the second-quarter debt issuance of $657 billion.<\/p>\n<p>However,\u200c demand for Treasury\u200c securities has \u2064fallen since the Fitch Ratings downgrade this past summer.<\/p>\n<p>&#8220;That announcement really \u2062marked the\u200b start of the Treasury bond market\u2019s concern about too much\u200c supply relative to\u2064 demand,&#8221;\u2062 Yardeni \u2064Research \u200bstated in a note. &#8220;The 10-year \u200cbond yield was\u2063 4.05 percent \u200bon Aug. 1. Now it is almost \u20634.80 percent.&#8221;<\/p>\n<p>The two-, 10-, and 30-year Treasury yields \u2063recently touched their highest levels in \u200b16 years. The yields retreated during the Oct. \u20624 session on a\u200d weaker-than-expected private payrolls \u200breport from\u200c ADP.<\/p>\n<p>With the Federal Reserve and other central\u200b banks\u2064 raising interest rates to\u200b the highest levels in years, growing government \u200cdebt burns could ripple throughout the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/deutsche-bank-shares-tank-fueling-banking-crisis-fears\/\" title=\"Deutsche Bank Shares Tank, Fueling Banking Crisis Fears\">global bond market<\/a>, Goldman \u200dSachs Research noted.<\/p>\n<p>&#8220;If you add to that central banks no longer running this easy policy, we find that there are\u200b now consequences for running high debt-to-GDP ratios, which\u200d is that your interest \u200dcosts will increase, and if your growth rates \u2063and inflation rates don\u2019t\u200b keep pace over time, then there is a question \u200bmark about who\u200b will buy these bonds,\u201d wrote George\u2063 Cole, Goldman\u2062 Sachs research\u200b head of European rates strategy.<\/p>\n<p>Speaking\u2062 at CNBC&#8217;s Delivering Alpha conference on Sept. 28, Pershing Square Capital Management&#8217;s \u2063Bill\u2064 Ackman said\u200b he thinks\u2064 the U.S. government will\u200c continue to\u200d pump more bonds \u200dinto the Treasury market to \u200bsupport the ballooning debt and\u2063 deficits, even amid\u200d diminishing demand.<\/p>\n<p>In the current\u2063 fiscal year to date, federal spending has risen\u2063 by \u200d3 percent, and tax revenues\u2063 have\u200c slumped by 10 percent. According\u2063 to White House budget projections,\u2062 cumulative deficits are forecast to \u2063total more\u200c than $17 \u200ctrillion. Even with the Fiscal Responsibility Act\u2014the name of the debt-limit \u200cdeal \u2062made\u200d by\u200b President\u2063 Biden and Mr. McCarthy\u2014cumulative shortfalls are\u2063 expected \u2063to \u2064be $1.5 trillion lower.<\/p>\n<p>Ray Dalio, founder of Bridgewater Associates, warned that the United States\u2063 is &#8220;going to \u2063have\u200d a debt\u2063 crisis in this\u2062 country.&#8221;<\/p>\n<div class=\"my-5\">\n<blockquote>\n<p>&#8220;How fast it transpires, I think, \u200bis \u2062going to be \u200da function of that \u200dsupply-demand issue,\u2062 so I\u2019m watching\u2064 that very closely,&#8221; \u200dMr. \u2063Dalio \u200csaid \u2064on Sept. 28 in an interview with CNBC.<\/p>\n<h2>Interest Payments<\/h2>\n<p>Interest payments have become\u2062 the second-largest budgetary \u2064item. In the \u200dfirst 11 months\u200d of the current fiscal year, total \u2063debt-servicing payments have exceeded\u2062 $864 billion. By comparison, Social Security spending \u2062has reached $1.238 trillion, while defense \u2063spending \u200chas surpassed $736 \u200dbillion.<\/p>\n<\/blockquote><\/div>\n<p>In the next decade,\u200c interest payments will total approximately\u2063 $10.6 \u2064trillion, \u200cmaking it the fastest-growing outlay in\u2064 the\u2064 federal budget. One\u2064 of the \u200dconcerns is that this \u2064will crowd out the nation\u2019s investments in \u200bother budget items, such as defense,\u200b education, research and development, and transportation. Growing net interest expenses could also \u200cthreaten the federal government\u2019s ability \u2064to sustain current \u200dprograms.<\/p>\n<p>Economists at the Federal Reserve\u2062 Bank of St. Louis claim that more pressures will be associated \u200cwith rolling over maturing\u2063 U.S. government debt amid a rising-rate climate.<\/p>\n<p>&#8220;The \u200blonger interest rates stay high, \u2064more and more of the [fixed-rate marketable portion of the U.S. debt] \u200cwill be rolled over \u200bat higher rates, continuing \u2064to\u200b cause interest payments by\u200c the government\u2064 to become \u200da larger and\u200c larger portion of\u2064 the budget,&#8221; staff economists \u2062wrote in\u200d a June paper.<\/p>\n<p>If interest continues \u200dto consume a substantial portion\u200d of \u2064the \u200dbudget \u200cevery year, it forces the nation\u2019s capital \u200dto borrow\u2062 more, \u2062according to Mr. Rubin. Borrowing costs will keep\u200d climbing because interest rates need to\u200c be high enough so that the Treasury can attract\u2063 enough\u2063 funding to service the ballooning national debt, he \u2062said.<\/p>\n<p>&#8220;It never gets to the\u2064 point where you can \u200bbalance \u200cthe budget,&#8221; \u2063he said.<\/p>\n<\/div>\n<p> <\/p>\n<h2> What are the \u200cpotential consequences of the \u2063growing national debt on the economy and future generations?<\/h2>\n<p><span>  The alarm about the \u2064growing\u2064 national debt. Economists and financial experts have expressed\u2063 concerns about the potential consequences \u200dof such a massive debt\u200b burden on \u200cthe economy\u2062 and\u200b future generations.<\/p>\n<p>The national debt \u200drefers to\u200c the total amount of money that the United States government owes to its\u2062 creditors, which includes individuals, institutions, and foreign governments. As \u200dof the latest update from the Treasury Department, the national \u200ddebt has surpassed $33.442 trillion, an increase of $275 billion\u2062 in just\u200d one day. This\u2064 sharp\u2064 rise highlights the \u200dalarming rate at which \u200dthe debt is accumulating.<\/p>\n<p>In addition to \u2062the daily increase, \u200bthe national debt has seen a surge of \u200dover $600 billion in just a month. This surge can be attributed to the debt-ceiling agreement reached between President \u2063Joe Biden and\u2063 former House\u200d Speaker Kevin McCarthy. Since the agreement, the federal government&#8217;s total \u2063public debt outstanding has risen by almost $2 \u2064trillion.<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-national-debt-soars-275-billion-in-one-day\/\" title=\"US National Debt skyrockets by 5B in 24 hours.\">increasing national debt poses significant challenges<\/a> for the United States. With the federal deficit on track to reach $2 trillion, it is \u200dcrucial \u200dto address this issue urgently. Failure \u2064to do so\u200d may have serious implications for the country&#8217;s financial stability and\u200d economic growth.<\/p>\n<p>In\u200d response to the rising debt, several conservative Republicans have called for accountability, action, and\u200c leadership changes in \u2062Washington.\u200c Representative Victoria Spartz\u2063 from Indiana, \u2064for\u200c instance, has threatened to resign\u2062 if a commission to tackle the national\u200b debt and above-trend \u200cinflation is not\u2063 established by \u200dthe end of the\u2064 year. She emphasizes the need for strong leadership and \u200da clear vision to address the pressing issue.<\/p>\n<p>The concerns raised by lawmakers, economists, and financial experts highlight the urgency of addressing the national debt.\u200b It\u200c is essential for the government to formulate effective strategies \u2064to curtail spending, increase revenue, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-report-nearly-triples-estimated-amount-covid-fraudsters-stole-in-unemployment-benefits\/\" title=\"New report triples estimated Covid fraudsters' unemployment benefit theft.\">prioritize responsible financial management<\/a>. Failure to\u200d do\u200d so may result in severe consequences for\u200b the economy, future generations, and the overall stability of the nation.<\/p>\n<p>The current situation \u200ccalls for collaboration \u2064and bipartisan efforts\u200b to \u2064find sustainable solutions \u2062to reduce the national debt. \u2064It \u2064is crucial for policymakers to work towards fiscal responsibility and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oregon-governor-encourages-people-to-call-police-on-neighbors-violating-covid-orders\/\" title=\"Oregon Governor Encourages People To Call Police On Neighbors Violating COVID Orders\">make informed decisions<\/a> that will secure the country&#8217;s financial future.<\/p>\n<p>In \u2064conclusion, the national debt\u200c in the United States has reached unprecedented levels, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/more-than-150k-new-cases-filed-with-u-s-immigration-courts-in-july-alone\/\" title=\"Over 150k new cases filed in U.S. immigration courts in July.\">posing significant challenges<\/a> for the \u2063economy\u2063 and future generations. Urgent \u200caction is\u2064 required to\u2063 address \u2062this issue,\u2064 and lawmakers, economists, and financial experts\u200c are sounding the alarm. By implementing responsible financial management strategies \u200band promoting fiscal responsibility, the government can work towards\u200c reducing \u200cthe national debt and\u200c ensuring a stable \u200band prosperous future for the nation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The national debt soared to over $33.442 trillion, with a $275 billion increase in one day and a $600 billion surge in a month. President Biden and former Speaker McCarthy agreed on the debt-ceiling. Treasury Department&#8217;s Debt to the Penny dataset reported these figures.<\/p>\n","protected":false},"author":278,"featured_media":2057429,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2057428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2057428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2057428"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2057428\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2057429"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2057428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2057428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2057428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}