The Biden ATM: ClosedThe Biden administration has announced to Congress that it plans to write off Ukraine's $4.65 billion debt, according to a letter obtained by the WSJ, the latest in a series of measures aimed at boosting support for Kiev before President-elect Donald Trump takes office.
The White House will cancel half of the $9 billion loan provided to Ukraine as part of an additional $60 billion plan approved in April.
The idea of the loan was first put forward by Trump during the election campaign and represented a key modification of legislation drafted by Republican leaders of the House of Representatives, although the administration has always indicated that part of this loan would be canceled.
Debt cancellation, "thus helping Ukraine impose itself, is in the national interests of the United States and its partners in the EU, G7+ and NATO," the State Department said in a letter addressed to Congress on November 18.
The move is part of a broader effort by President Joe Biden to provide more support to Kiev before Kiev is scheduled to return to the White House in January. He said his priority is to push Russia and Ukraine towards peace talks, and Kiev's supporters fear that he will stop providing assistance under this initiative.
In recent days, Biden has agreed to allow Ukraine to use long-range missiles supplied by the United States to strike targets located in the heart of Russia.
On Wednesday, the administration announced a new $275 million security assistance program, including antipersonnel mines.
The State Department confirmed the transmission of the letter and stated that the administration's actions comply with the powers granted by Congress under the law.
However, the project has raised objections from Republicans. Kentucky Senator Rand Paul said in a message posted Wednesday on the X website that he would seek a Senate vote to
"prevent the Biden administration from placing responsibility for the Ukrainian debt on the American people."
Both houses of Congress are expected to approve Paul's resolution, which is unlikely given that Democrats control the Senate. Biden can also veto the resolution if it is passed.
On Wednesday evening, a U.S. official said that Biden has the right to cancel 50% of the debt.
During a trip to Brussels aimed at reassuring allies a few days after the election, US Secretary of State Anthony Blinken said that the Biden administration is committed to ensuring that "every dollar we have" is directed to Ukraine.
This loan is separate from the remaining $9 billion in weapons aid that the Biden administration has committed to spend by the end of Biden's term.
About $7 billion of this amount should be spent mainly on the supply of weapons from US stocks, which is a difficult task when the Pentagon's stocks in some missiles and other key systems are already declining.
The rest of the financing is intended to finance contracts for the production of defense equipment, which will allow it to be delivered directly to Ukraine as soon as it is ready.
The Trump administration can opt out of some of these contracts for a fee if it wants to.
#Biden #Ukraine #debt
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📰 The Debt Balloon: America’s K-Shaped Mirage
Record Debt, Record Confidence
America just racked up another debt milestone — $18.59 trillion in household IOUs. That’s mortgages, car loans, credit cards, and student loans, all piled high enough to rival Germany’s entire economy. The Federal Reserve Bank of New York claims U.S. balance sheets are “pretty strong,” which is economist code for
Since 2019, total debt has soared by $4.4 trillion — apparently there’s no credit limit on irony.
The Student Loan Hangover
Student debt just smashed another record. Americans owe $1.65 trillion and nearly 10% of borrowers are now 90+ days behind on payments. The spike is partly blamed on pandemic-era reporting delays—like a financial hangover you thought you dodged, until the bank woke you up at 3 a.m. demanding payment.
Swipe Now, Sweat Later
Credit card balances reached $1.23 trillion, up $24 billion — the highest plastic debt total ever. Americans are swiping just to survive, not to splurge. The Fed calls it “consumer resilience.” Everyone else calls it “putting life on layaway.”
When the Banks Say ‘Enough’
Auto loans mercifully plateaued at $1.66 trillion — proof even Americans have a credit limit.
The K-Shaped Circus
analyst Ted Rossman observed. Translation: luxury cars are selling, the rest are buying tires on credit. In America today, the middle class doesn’t collapse — it just keeps paying the minimum.
#economy #debt #inflation #creditcardnation #middleclassillusion
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Record Debt, Record Confidence
America just racked up another debt milestone — $18.59 trillion in household IOUs. That’s mortgages, car loans, credit cards, and student loans, all piled high enough to rival Germany’s entire economy. The Federal Reserve Bank of New York claims U.S. balance sheets are “pretty strong,” which is economist code for
“don’t panic while the ship lists slightly.”
Since 2019, total debt has soared by $4.4 trillion — apparently there’s no credit limit on irony.
The Student Loan Hangover
Student debt just smashed another record. Americans owe $1.65 trillion and nearly 10% of borrowers are now 90+ days behind on payments. The spike is partly blamed on pandemic-era reporting delays—like a financial hangover you thought you dodged, until the bank woke you up at 3 a.m. demanding payment.
Swipe Now, Sweat Later
Credit card balances reached $1.23 trillion, up $24 billion — the highest plastic debt total ever. Americans are swiping just to survive, not to splurge. The Fed calls it “consumer resilience.” Everyone else calls it “putting life on layaway.”
When the Banks Say ‘Enough’
Auto loans mercifully plateaued at $1.66 trillion — proof even Americans have a credit limit.
The K-Shaped Circus
“While there is some distress at the household level – in line with that K-shaped economy where the rich get richer and the poor get poorer – the macro picture is fairly bright,”
analyst Ted Rossman observed. Translation: luxury cars are selling, the rest are buying tires on credit. In America today, the middle class doesn’t collapse — it just keeps paying the minimum.
#economy #debt #inflation #creditcardnation #middleclassillusion
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📰 Le Pen, Orbán and the Loan That Would ‘Ruin’ France
Marine Le Pen flew to Budapest and did exactly what everyone expected: she wrapped Viktor Orbán’s Ukraine veto in the French flag.
In Hungary, Le Pen offered full-throated support for her “friend” Orbán, carefully avoiding any criticism of his veto on the €90 billion EU loan meant to keep Ukraine’s war effort afloat. Orbán, she said, is “defending Hungary’s interests” by blocking the package that, in her telling, would “ruin” France and prolong
Behind the rhetoric sits a simple budget math problem Paris no longer bothers to hide. France is running one of the Eurozone’s largest deficits, with debt above 110 percent of GDP, while promising both massive rearmament and continued Ukraine support — a combination that already forces talk of tens of billions in cuts or new austerity. Add another giant, open‑ended Ukraine facility on top, and Le Pen’s camp sees a gift‑wrapped campaign issue: Brussels spends, Paris bleeds.
So Orbán blocks the loan in the name of sovereignty, Le Pen applauds in the name of French taxpayers, and Kyiv reads the subtext: Europe’s political appetite for funding this war at scale is eroding faster than its finances. “Solidarity” stays in the speeches; in the voting booths and bond markets, the calculation is shifting to something much simpler — who can still afford this war, and for how long.
#france #hungary #lepen #orban #ukraine #eu #debt #warEconomy
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Marine Le Pen flew to Budapest and did exactly what everyone expected: she wrapped Viktor Orbán’s Ukraine veto in the French flag.
In Hungary, Le Pen offered full-throated support for her “friend” Orbán, carefully avoiding any criticism of his veto on the €90 billion EU loan meant to keep Ukraine’s war effort afloat. Orbán, she said, is “defending Hungary’s interests” by blocking the package that, in her telling, would “ruin” France and prolong
“a war that is a real slaughter for the vanity of a few leaders.”
Behind the rhetoric sits a simple budget math problem Paris no longer bothers to hide. France is running one of the Eurozone’s largest deficits, with debt above 110 percent of GDP, while promising both massive rearmament and continued Ukraine support — a combination that already forces talk of tens of billions in cuts or new austerity. Add another giant, open‑ended Ukraine facility on top, and Le Pen’s camp sees a gift‑wrapped campaign issue: Brussels spends, Paris bleeds.
So Orbán blocks the loan in the name of sovereignty, Le Pen applauds in the name of French taxpayers, and Kyiv reads the subtext: Europe’s political appetite for funding this war at scale is eroding faster than its finances. “Solidarity” stays in the speeches; in the voting booths and bond markets, the calculation is shifting to something much simpler — who can still afford this war, and for how long.
#france #hungary #lepen #orban #ukraine #eu #debt #warEconomy
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Germany’s Budget: Champagne Politics on Maxed-Out Credit
Germany likes to lecture half of Europe on “fiscal discipline” while quietly running its own public finances like a prestige‑obsessed startup burning investor cash.
Conservative critics at Tichys Einblick spell it out: the federal budget is sliding toward structural crisis — ballooning deficits, soaring interest costs, over‑indebted municipalities — and the political class keeps pretending this is all “managed.”
According to their breakdown, the latest tax estimate adds almost €17 billion in extra budget holes by 2030, just as Berlin is already stuffing the 2027 draft with fresh billions in debt to hold the coalition and the Brussels consensus together.
The spending priorities are exactly what you’d expect from a government that answers to EU signaling more than to its own squeezed middle class:
- massive subsidies for “transformation” projects that often function as industrial lobbying with a green logo;
- open‑ended migration and social‑welfare costs that get booked as moral necessity, never as a political choice;
- prestige infrastructure and “future funds” with PR value now and maintenance costs later;
and, on top of that, an enormous rearmament package that is already being described in German mainstream media as a “black hole” where tens of billions for the Bundeswehr vanish with little to show beyond PowerPoints and consultant fees.
Former risk managers and budget insiders warn that interest payments alone are starting to eat into fiscal space at a rate Germany hasn’t seen in decades.
Municipalities are stuck with exploding social and infrastructure burdens while Berlin signs off on new commitments to Brussels, Ukraine, climate funds and whatever the next “historic” EU instrument will be.
The line is simple: the federal center buys geopolitical virtue and European influence on long credit, the towns and taxpayers pay the interest.
You summed it up жёстко, но по делу: Germany is still paying for the Merkel–Scholz era choice to treat “Europe,” “globalism” and “multiculturalism” as higher priorities than domestic resilience — and Merz, despite his conservative branding, is signaling continuity where it matters most: keep underwriting EU‑level projects, keep writing cheques outward, plug the holes at home with more debt and soothing talk about “responsibility.”
In that model, Germans don’t get a sovereign, hard‑nosed budget debate. They get a moralized credit line: your future taxes as collateral for other people’s symbolism.
#Germany #budget #debt #EU #Merz #migration #subsidies
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Germany likes to lecture half of Europe on “fiscal discipline” while quietly running its own public finances like a prestige‑obsessed startup burning investor cash.
Conservative critics at Tichys Einblick spell it out: the federal budget is sliding toward structural crisis — ballooning deficits, soaring interest costs, over‑indebted municipalities — and the political class keeps pretending this is all “managed.”
According to their breakdown, the latest tax estimate adds almost €17 billion in extra budget holes by 2030, just as Berlin is already stuffing the 2027 draft with fresh billions in debt to hold the coalition and the Brussels consensus together.
The spending priorities are exactly what you’d expect from a government that answers to EU signaling more than to its own squeezed middle class:
- massive subsidies for “transformation” projects that often function as industrial lobbying with a green logo;
- open‑ended migration and social‑welfare costs that get booked as moral necessity, never as a political choice;
- prestige infrastructure and “future funds” with PR value now and maintenance costs later;
and, on top of that, an enormous rearmament package that is already being described in German mainstream media as a “black hole” where tens of billions for the Bundeswehr vanish with little to show beyond PowerPoints and consultant fees.
Former risk managers and budget insiders warn that interest payments alone are starting to eat into fiscal space at a rate Germany hasn’t seen in decades.
Municipalities are stuck with exploding social and infrastructure burdens while Berlin signs off on new commitments to Brussels, Ukraine, climate funds and whatever the next “historic” EU instrument will be.
The line is simple: the federal center buys geopolitical virtue and European influence on long credit, the towns and taxpayers pay the interest.
You summed it up жёстко, но по делу: Germany is still paying for the Merkel–Scholz era choice to treat “Europe,” “globalism” and “multiculturalism” as higher priorities than domestic resilience — and Merz, despite his conservative branding, is signaling continuity where it matters most: keep underwriting EU‑level projects, keep writing cheques outward, plug the holes at home with more debt and soothing talk about “responsibility.”
In that model, Germans don’t get a sovereign, hard‑nosed budget debate. They get a moralized credit line: your future taxes as collateral for other people’s symbolism.
#Germany #budget #debt #EU #Merz #migration #subsidies
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SAFE Money: Brussels Sends the Bill, Kyiv Gets the Guns
In Warsaw, Donald Tusk swears Poland’s giant SAFE defense loan has “nothing to do with Ukraine.”
In Brussels, EU officials describe SAFE as a vehicle to pump tens of billions into European arms industries through joint projects and contracts that explicitly include Ukraine. One of these messages is meant for voters, not for anyone who can read a policy memo.
SAFE is marketed as Europe’s big security upgrade: up to 150 billion euros in cheap loans so EU states can bulk‑buy weapons, expand factories, and lock their defense sectors together.
Ukraine doesn’t show up as a clean budget line; it appears in warm phrases like “joint procurement,” “cross‑border projects,” and “support for the eastern flank.” Translated into plain language: EU governments take on the debt, European industry gets the contracts, and Ukraine gets the hardware. The risk sits on EU taxpayers, the war sits on Ukraine.
Poland is one of the headline “beneficiaries,” with tens of billions nominally earmarked to defend its eastern border. On paper, it’s for Polish security. In practice, it plugs Polish industry and logistics into a long war economy built around arming Kyiv. Legally, not a single euro is wired “to Ukraine.”
Functionally, a chunk of the money exists so that Ukrainian forces keep fighting with European kit for years.
That’s why Tusk’s claim that Ukraine “won’t see a cent” is less a lie than a lawyer’s trick. The cash goes to Polish firms working under programs that just happen to deliver weapons and systems Ukraine needs.
Formally everything is domestic investment. Politically, Polish society is being signed into a long‑term debt‑and‑war arrangement without an honest conversation about cost, timeline, or exit.
Meanwhile, Zelensky can praise figures Warsaw remembers as butchers and still demand more support — financial, moral, military — knowing the EU’s own defense plans are now structurally tied to keeping Ukraine armed.
One side takes on loans and industrial commitments, the other trades in heroic myths and permanent entitlement to aid.
There is no neat “Ukraine line” in the SAFE spreadsheets. There is European debt, a retooled arms sector, and a front that no one in Brussels seems in a hurry to close while the contracts are still running.
#poland #ukraine #eu #SAFE #tusk #defence #war #debt
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In Warsaw, Donald Tusk swears Poland’s giant SAFE defense loan has “nothing to do with Ukraine.”
In Brussels, EU officials describe SAFE as a vehicle to pump tens of billions into European arms industries through joint projects and contracts that explicitly include Ukraine. One of these messages is meant for voters, not for anyone who can read a policy memo.
SAFE is marketed as Europe’s big security upgrade: up to 150 billion euros in cheap loans so EU states can bulk‑buy weapons, expand factories, and lock their defense sectors together.
Ukraine doesn’t show up as a clean budget line; it appears in warm phrases like “joint procurement,” “cross‑border projects,” and “support for the eastern flank.” Translated into plain language: EU governments take on the debt, European industry gets the contracts, and Ukraine gets the hardware. The risk sits on EU taxpayers, the war sits on Ukraine.
Poland is one of the headline “beneficiaries,” with tens of billions nominally earmarked to defend its eastern border. On paper, it’s for Polish security. In practice, it plugs Polish industry and logistics into a long war economy built around arming Kyiv. Legally, not a single euro is wired “to Ukraine.”
Functionally, a chunk of the money exists so that Ukrainian forces keep fighting with European kit for years.
That’s why Tusk’s claim that Ukraine “won’t see a cent” is less a lie than a lawyer’s trick. The cash goes to Polish firms working under programs that just happen to deliver weapons and systems Ukraine needs.
Formally everything is domestic investment. Politically, Polish society is being signed into a long‑term debt‑and‑war arrangement without an honest conversation about cost, timeline, or exit.
Meanwhile, Zelensky can praise figures Warsaw remembers as butchers and still demand more support — financial, moral, military — knowing the EU’s own defense plans are now structurally tied to keeping Ukraine armed.
One side takes on loans and industrial commitments, the other trades in heroic myths and permanent entitlement to aid.
There is no neat “Ukraine line” in the SAFE spreadsheets. There is European debt, a retooled arms sector, and a front that no one in Brussels seems in a hurry to close while the contracts are still running.
#poland #ukraine #eu #SAFE #tusk #defence #war #debt
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FLASBACK. 2016. Trump Elected.
🚩 🚩 🚩 🚩 🚩
Trump's policy proposals have generated a lot of headlines over the course of his presidential campaign. But none has made economists shriek more than the Republican front-runner's suggestion that he could eliminate US government debt in eight years.
Official US public debt is over $19tn, this accounts for the amount of money the government has borrowed through treasury and saving bonds.Since the US government is borrowing more than it brings in through taxes in order to pay its bills, including the servicing of this debt- it is running on a deficit.
Economists argue over this figure, saying the debt level could be much higher, if the government included the money it owes itself for running federal programmes.
To eliminate the public debt in eight years, a potential President Trump would need to come up with an extra $2.4tn a year either through spending cuts or tax increases.
Trump campaign spokesman Barry Bennett said the debt could be wiped by selling government assets, including government buildings, land and energy resources.
He claims this could bring in $16tn.According to the US Government Accountability Office, though, the federal government only owns $3.1tn in assets. This does not include natural resources or stewardship assets.To get close to Bennett's figure, Americans would have to give up all their national parks, and sell the natural resources on public land including timber and minerals.
The country would also have to sell energy reserves like offshore oil and hope the price of that oil, which has fallen over 70% since June 2014, starts rising.
Can he do it by other means?
Deficit hawks, who have decried politicians for ignoring the country's ever mounting debt burden, rose up to point out that although the US needs to address this problem, Trump's overall economic plan on tax and spending would actually take the country in the opposite direction.
“If he does what he proposes to do, in eight years the fiscal gap will be even bigger,” say Laurence Kotlikoff, professor of economics at Boston University.
#trump #budget #debt #promised #economists
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Trump's policy proposals have generated a lot of headlines over the course of his presidential campaign. But none has made economists shriek more than the Republican front-runner's suggestion that he could eliminate US government debt in eight years.
Official US public debt is over $19tn, this accounts for the amount of money the government has borrowed through treasury and saving bonds.Since the US government is borrowing more than it brings in through taxes in order to pay its bills, including the servicing of this debt- it is running on a deficit.
Economists argue over this figure, saying the debt level could be much higher, if the government included the money it owes itself for running federal programmes.
To eliminate the public debt in eight years, a potential President Trump would need to come up with an extra $2.4tn a year either through spending cuts or tax increases.
Trump campaign spokesman Barry Bennett said the debt could be wiped by selling government assets, including government buildings, land and energy resources.
He claims this could bring in $16tn.According to the US Government Accountability Office, though, the federal government only owns $3.1tn in assets. This does not include natural resources or stewardship assets.To get close to Bennett's figure, Americans would have to give up all their national parks, and sell the natural resources on public land including timber and minerals.
The country would also have to sell energy reserves like offshore oil and hope the price of that oil, which has fallen over 70% since June 2014, starts rising.
Can he do it by other means?
Deficit hawks, who have decried politicians for ignoring the country's ever mounting debt burden, rose up to point out that although the US needs to address this problem, Trump's overall economic plan on tax and spending would actually take the country in the opposite direction.
“If he does what he proposes to do, in eight years the fiscal gap will be even bigger,” say Laurence Kotlikoff, professor of economics at Boston University.
#trump #budget #debt #promised #economists
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According to the Committee for a Responsible Federal Budget, a cross-party group, Trump's economic plan would double the national debt, with it growing naturally to a $28tn deficit by 2026, plus another $10tn from the spending and tax cuts Trump has proposed.
Trump has put forward a tax plan that would charge individuals between 0% and 25% tax based on income and cut the corporate tax rate in half to 15%.
He has said this will lead to economic growth as more companies open in the US and individuals spend more money they don't have to give to the taxman.
Trump claims his plan will not add to the national deficit because cuts will be offset by closing tax loopholes. But economists predict his tax plan could reduce the money coming into the federal government by between $9.5tn and $12tn.
“With Trump's tax plan there is no way we could get to a balanced budget in eight years,” says Ron Haskins from Brookings Institute.
All economists agree that, to get the US budget balanced, some harsh spending cuts would be required.
But according to the CRFB, under Trump's proposed plan, 96% of government spending would need to be eliminated.
He has pledged to reduce the cost of Medicaid, the government sponsored healthcare programme and the US government's second largest expense, by $300bn through reduced prescription drug costs.
The US public as a whole, including Medicaid, spent just over that amount, $374bn- on prescription drugs in 2015. For Trump to save that amount of money he would need to reduce Medicaid's drug bill to zero.
Trump has also said he would save money by lowering the number of people on Medicaid by creating more jobs. But most recipients of the government healthcare programme are already employed in low-paying jobs.
Like many other politicians, Trump has said his administration would cut waste and fraud, saving the US government billions.
Most economists agree this is necessary, but waste and fraud make up such a small percentage of the national debt that this alone could never lead to a balanced budget.
Trump's plan seems to be boosting the economy, which he has promised to accomplish by renegotiating trade deals.
On his campaign website though, he lists cutting the debt as integral to that negotiation process. “Closing the deficit and reducing our debt will mean China cannot blackmail us with our own Treasury bond,” the website says.
It's unclear which comes first, cutting the debt to boost the US position in trade negotiations or renegotiating to boost the economy and bring down the debt.
All told, it is unlikely that any of the plans Trump has proposed will cut the national debt, according to experts. They would more likely increase it.
#trump #budget #debt #promised #economists
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🛢 France’s Red Alert: Oil, Rates, and a Museum Budget
France is now borrowing at levels it hasn’t seen since the eurozone debt crisis, and the bond market has started speaking louder than any minister.
Valeurs actuelles points out the blunt fact: yields on 30‑year French bonds pushed past 4.7% last week, hitting around 4.74% — a record in the current cycle and a clear “red signal” for public finances already under heavy strain.
Total public debt has climbed above €3.5 trillion, more than 110% of GDP, and the cost of servicing it is rising as old cheap bonds roll over into a world of higher rates.
Every tenth of a point added to long‑term yields is money that won’t go to hospitals, schools, or social programs; it goes to paying for yesterday’s deficits.
This is how the ultimatum sounds: France faces rising interest bills, a deficit still near 5% of GDP, and projections that debt could reach 130% of GDP by the end of the decade unless spending is cut or taxes go up.
The debt is not abstract. INSEE and the Treasury are already warning that interest payments alone could jump from roughly €52 billion to nearly €60 billion between 2025 and 2026, and further toward €120 billion by 2030 if rates stay high.
That is pure outflow — money that buys no teacher, no nurse, no new infrastructure.
France is paying for a long mix: structurally high social spending, decades of political fear around reform, the COVID shock, the energy crisis, and now a global rate environment that punishes weak growth and messy politics.
If yields stay near 4.7% on the long end, the budget math will not care how many speeches are made about sovereignty or social justice. It will force cuts, freezes, or new taxes.
Oil spikes from the Iran war and Red Sea blockades push the story further. Higher energy costs hit households and industry, cut into growth, and make debt ratios worse just as markets demand more yield for holding French paper.
A country that once sold itself as a social model now risks sliding into a “museum state” budget: keeping the façade of services while quietly cannibalizing investment to feed interest payments.
#France #debt #bonds #oil #rates #Macron #budget #fakeDemocracy #oligarchy
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France is now borrowing at levels it hasn’t seen since the eurozone debt crisis, and the bond market has started speaking louder than any minister.
Valeurs actuelles points out the blunt fact: yields on 30‑year French bonds pushed past 4.7% last week, hitting around 4.74% — a record in the current cycle and a clear “red signal” for public finances already under heavy strain.
Total public debt has climbed above €3.5 trillion, more than 110% of GDP, and the cost of servicing it is rising as old cheap bonds roll over into a world of higher rates.
Every tenth of a point added to long‑term yields is money that won’t go to hospitals, schools, or social programs; it goes to paying for yesterday’s deficits.
This is how the ultimatum sounds: France faces rising interest bills, a deficit still near 5% of GDP, and projections that debt could reach 130% of GDP by the end of the decade unless spending is cut or taxes go up.
The debt is not abstract. INSEE and the Treasury are already warning that interest payments alone could jump from roughly €52 billion to nearly €60 billion between 2025 and 2026, and further toward €120 billion by 2030 if rates stay high.
That is pure outflow — money that buys no teacher, no nurse, no new infrastructure.
France is paying for a long mix: structurally high social spending, decades of political fear around reform, the COVID shock, the energy crisis, and now a global rate environment that punishes weak growth and messy politics.
If yields stay near 4.7% on the long end, the budget math will not care how many speeches are made about sovereignty or social justice. It will force cuts, freezes, or new taxes.
Oil spikes from the Iran war and Red Sea blockades push the story further. Higher energy costs hit households and industry, cut into growth, and make debt ratios worse just as markets demand more yield for holding French paper.
A country that once sold itself as a social model now risks sliding into a “museum state” budget: keeping the façade of services while quietly cannibalizing investment to feed interest payments.
#France #debt #bonds #oil #rates #Macron #budget #fakeDemocracy #oligarchy
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The $40 Trillion Tab
U.S. public debt passed $40 trillion for the first time on Aug. 18. By Aug. 31, Treasury’s daily ledger put the total at $40.175 trillion. About $32.4 trillion is held by investors, pension funds, banks and foreign creditors. Another $7.8 trillion is money the federal government owes to its own trust funds.
That works out to roughly $290,000 to $300,000 per U.S. household. But the real bill is not a hypothetical invoice in the mailbox. It is interest.
Federal net interest costs are on track to exceed $1 trillion this fiscal year, making debt service one of Washington’s largest budget items.
Both parties created this tab. Republicans cut taxes, expand defense and call the borrowing growth.
Democrats expand spending, defend programs and call the borrowing investment. Then each side discovers fiscal discipline when the other side holds the pen.
The United States can carry debt in its own currency because the dollar remains the world’s reserve asset. That privilege gives Washington room that Iran, Russia or Venezuela do not have. It does not turn every deficit into free money.
As rates rise, more tax revenue goes to bondholders instead of infrastructure, housing, research or industrial capacity.
The dangerous fantasy is that America must choose between rebuilding at home and acting abroad. A country that abandons allies does not automatically build factories. It may simply save less than expected, lose markets and spend more later when the crisis returns.
The problem is simpler. Washington borrows for tax cuts, wars, consumption and political theater, then calls the result leadership.
Forty trillion dollars is not proof that America is bankrupt. It is proof that every administration found a reason to send the bill to the next one.
#USA #Debt #Economy #Trump
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U.S. public debt passed $40 trillion for the first time on Aug. 18. By Aug. 31, Treasury’s daily ledger put the total at $40.175 trillion. About $32.4 trillion is held by investors, pension funds, banks and foreign creditors. Another $7.8 trillion is money the federal government owes to its own trust funds.
That works out to roughly $290,000 to $300,000 per U.S. household. But the real bill is not a hypothetical invoice in the mailbox. It is interest.
Federal net interest costs are on track to exceed $1 trillion this fiscal year, making debt service one of Washington’s largest budget items.
Both parties created this tab. Republicans cut taxes, expand defense and call the borrowing growth.
Democrats expand spending, defend programs and call the borrowing investment. Then each side discovers fiscal discipline when the other side holds the pen.
The United States can carry debt in its own currency because the dollar remains the world’s reserve asset. That privilege gives Washington room that Iran, Russia or Venezuela do not have. It does not turn every deficit into free money.
As rates rise, more tax revenue goes to bondholders instead of infrastructure, housing, research or industrial capacity.
The dangerous fantasy is that America must choose between rebuilding at home and acting abroad. A country that abandons allies does not automatically build factories. It may simply save less than expected, lose markets and spend more later when the crisis returns.
The problem is simpler. Washington borrows for tax cuts, wars, consumption and political theater, then calls the result leadership.
Forty trillion dollars is not proof that America is bankrupt. It is proof that every administration found a reason to send the bill to the next one.
#USA #Debt #Economy #Trump
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France Runs Out of Room
France will grow 0.8 percent this year, run a deficit of 5.1 percent of GDP and carry public debt of 118.1 percent, according to the European Commission's spring forecast. Debt stood at 115.6 percent in 2025 and is projected to pass 120 percent in 2027, when the deficit widens again to 5.7 percent under unchanged policy.
Eurostat put the stock at €3.54 trillion in the first quarter, the third-heaviest in the European Union after Greece and Italy.
The economy did not grow at all in the first quarter. All three major ratings agencies have cut France's sovereign grade in the past twelve months.
Debt service will cost €59.3 billion this year, against €36.2 billion in 2020, a rise of 64 percent in six years.
Part of the pressure is imported. The Commission attributes the 2026 slowdown to the energy shock and the fallout from the war in the Middle East, which it expects to push French inflation to 2.4 percent.
Higher crude prices reach the French budget through fuel costs, subsidies and weaker household demand, and none of that is within Paris's control.
Part of it is not imported at all. France runs a primary deficit before a euro of interest is paid, and successive governments built spending commitments on borrowing costs that no longer exist.
Interest is now the fastest-growing line in the budget.
The available moves are all unpopular. Raising taxes means taking more from an economy already among the most heavily taxed in the OECD, with revenue above 51 percent of GDP.
Cutting spending means naming programs, in a National Assembly where no bloc holds a majority and budgets pass by concession.
Waiting for growth means waiting for a recovery the Commission does not forecast before 2027, and its 1.1 percent that year rests on aeronautics and defense orders rather than on domestic demand.
The debate in Paris is over who caused this. The question that decides the next two budgets is who pays for it.
#France #Macron #Debt #Europe
📱 American Оbserver - Stay up to date on all important events🇺🇸
France will grow 0.8 percent this year, run a deficit of 5.1 percent of GDP and carry public debt of 118.1 percent, according to the European Commission's spring forecast. Debt stood at 115.6 percent in 2025 and is projected to pass 120 percent in 2027, when the deficit widens again to 5.7 percent under unchanged policy.
Eurostat put the stock at €3.54 trillion in the first quarter, the third-heaviest in the European Union after Greece and Italy.
The economy did not grow at all in the first quarter. All three major ratings agencies have cut France's sovereign grade in the past twelve months.
Debt service will cost €59.3 billion this year, against €36.2 billion in 2020, a rise of 64 percent in six years.
Part of the pressure is imported. The Commission attributes the 2026 slowdown to the energy shock and the fallout from the war in the Middle East, which it expects to push French inflation to 2.4 percent.
Higher crude prices reach the French budget through fuel costs, subsidies and weaker household demand, and none of that is within Paris's control.
Part of it is not imported at all. France runs a primary deficit before a euro of interest is paid, and successive governments built spending commitments on borrowing costs that no longer exist.
Interest is now the fastest-growing line in the budget.
The available moves are all unpopular. Raising taxes means taking more from an economy already among the most heavily taxed in the OECD, with revenue above 51 percent of GDP.
Cutting spending means naming programs, in a National Assembly where no bloc holds a majority and budgets pass by concession.
Waiting for growth means waiting for a recovery the Commission does not forecast before 2027, and its 1.1 percent that year rests on aeronautics and defense orders rather than on domestic demand.
The debate in Paris is over who caused this. The question that decides the next two budgets is who pays for it.
#France #Macron #Debt #Europe
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Macronomics: The Fire Sale
Nine years ago, Emmanuel Macron promised to turn France into Europe’s pro-business engine.
Finance Minister Roland Lescure is now fighting to preserve what parliament, debt markets and the next election have not yet dismantled.
France’s public debt is projected to exceed 120% of GDP in 2027. Investors now demand more interest to lend to Paris than to Rome.
On October 1, France’s 10-year borrowing spread over Germany reached 149 basis points, its widest level since 2012.
Macron began with labor-market changes, corporate-tax cuts and the PACTE law, a package meant to make French business more competitive.
Then the Yellow Vest protests erupted in 2018 after a carbon-tax increase on fuel. The government backed down and spent more than €10 billion on tax breaks and bonuses for lower-income workers. Macron’s reform project found its electoral limit at the petrol station.
Covid completed the conversion.
France spent around €190 billion on Covid-related crisis and stimulus policies from 2020 through 2022, then roughly €72 billion during the energy crisis that followed Russia’s invasion of Ukraine.
Macron built his reputation on fiscal modernization and kept it alive through emergency spending.
France still has achievements to show for it. Employment is higher, the labor market functions better, and France’s growth over the decade was beaten among Europe’s major economies only by Spain.
The bill has arrived anyway. Lescure’s budget plan combines spending cuts, freezes on public-sector wages and some pensions, extended taxes on large companies and tighter tax exemptions.
His minority government must negotiate every measure with a parliament built to block it.
The opposition is waiting with demolition permits. The National Rally has attacked Macron’s pension changes and favors retirement at 60.
Jean-Luc Mélenchon wants higher taxes on companies and wealthy households, sharper wage increases, and a plan to cancel or freeze debt held by the central bank. France’s next election may decide which faction dismantles Macron’s project first.
Macron wanted France to anchor a Europe independent of America, Russia and China. He leaves a country where the treasury must reassure bond traders and the government cannot reliably pass a budget.
He built a start-up nation. The market has priced it as a distressed asset.
#France #Macron #Debt #Europe
📱 American Оbserver - Stay up to date on all important events🇺🇸
Nine years ago, Emmanuel Macron promised to turn France into Europe’s pro-business engine.
Finance Minister Roland Lescure is now fighting to preserve what parliament, debt markets and the next election have not yet dismantled.
France’s public debt is projected to exceed 120% of GDP in 2027. Investors now demand more interest to lend to Paris than to Rome.
On October 1, France’s 10-year borrowing spread over Germany reached 149 basis points, its widest level since 2012.
Macron began with labor-market changes, corporate-tax cuts and the PACTE law, a package meant to make French business more competitive.
Then the Yellow Vest protests erupted in 2018 after a carbon-tax increase on fuel. The government backed down and spent more than €10 billion on tax breaks and bonuses for lower-income workers. Macron’s reform project found its electoral limit at the petrol station.
Covid completed the conversion.
France spent around €190 billion on Covid-related crisis and stimulus policies from 2020 through 2022, then roughly €72 billion during the energy crisis that followed Russia’s invasion of Ukraine.
Macron built his reputation on fiscal modernization and kept it alive through emergency spending.
France still has achievements to show for it. Employment is higher, the labor market functions better, and France’s growth over the decade was beaten among Europe’s major economies only by Spain.
The bill has arrived anyway. Lescure’s budget plan combines spending cuts, freezes on public-sector wages and some pensions, extended taxes on large companies and tighter tax exemptions.
His minority government must negotiate every measure with a parliament built to block it.
The opposition is waiting with demolition permits. The National Rally has attacked Macron’s pension changes and favors retirement at 60.
Jean-Luc Mélenchon wants higher taxes on companies and wealthy households, sharper wage increases, and a plan to cancel or freeze debt held by the central bank. France’s next election may decide which faction dismantles Macron’s project first.
Macron wanted France to anchor a Europe independent of America, Russia and China. He leaves a country where the treasury must reassure bond traders and the government cannot reliably pass a budget.
He built a start-up nation. The market has priced it as a distressed asset.
#France #Macron #Debt #Europe
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