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The latest OECD report presents a cautious outlook for the UK economy, predicting slower growth amidst global uncertainties and domestic fiscal challenges. The UK’s GDP is projected to grow by 1.3% in 2025 and 1% in 2026, reflecting a slight downward revision. According to the OECD, trade tensions, particularly U.S. tariffs, are disrupting global supply …
Continue reading “Debt and trade issues weaken UK growth – so says the OECD”
Moody’s Investors Service has downgraded the United States’ sovereign credit rating from Aaa to Aa1, citing concerns over the country’s growing debt burden and rising interest costs. This marks the first time Moody’s has lowered the U.S. rating, aligning it with previous downgrades by Standard & Poor’s (2011) and Fitch Ratings (2023). The downgrade reflects …
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As of September 2024, the UK’s national debt stands at £2,685.6 billion, which is approximately 100% of the country’s GDP. This is the highest level of public sector debt since 1961. UK debt and its borrowing As of 2024, the United Kingdom’s national debt has reached a staggering £2,685.6 billion, an amount equivalent to the …
Continue reading “Debt, debt and even more debt – the UK and its borrowing habit”
The International Monetary Fund’s leader warned on Thursday 17th October 2024 that the global economy continues to be hindered by high government debt and sluggish growth. MD Kristalina Georgieva praised the efforts of major central banks in controlling inflation but pointed out that such successes were not widespread. Additionally, Georgieva cautioned that international trade is …
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Highest ratio since the 1960’s and even higher than that reached during the Covid pandemic of 2020. The UK’s national debt has reached its highest level since 1962. Official figures from the ONS show that the total government debt amounted to 99.5% of the economy’s value in June 2024, surpassing the peak levels experienced during …
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The world is in debt to the tune of $315 trillion, and counting. $315,000,000,000,000 $315 trillion or $315,000,000,000,000 is a daunting number, it’s massive. In 2024, the global GDP reached just $109.5 trillion, just over a third of the global debt figure. Perspective To provide some perspective, with the world population at roughly 8.1 billion, …
The federal debt reportedly reached $34.5 trillion, marking an increase of approximately $11 trillion since March 2020. This surge has sparked discussions among government and financial leaders, with a notable Wall Street firm questioning whether the associated costs could threaten the stock market’s upward trend. The Congressional Budget Office projects that the public debt will …
Borge Brende, the president of the World Economic Forum (WEF), recently issued a stark warning about global debt levels. Speaking at the ‘Special Meeting on Global Collaboration, Growth and Energy for Development‘ in Riyadh, Saudi Arabia, (see WEF website), he highlighted that global debt ratios are approaching levels not seen since the 1820s. The WEF president also reportedly emphasized …
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The U.S. national debt has been growing more quickly in recent months, increasing about $1 trillion nearly every 100 days. U.S. debt permanently crossed over $34 trillion on 4th January 2024 according to data from the U.S. Department of the Treasury. It reached $33 trillion on 15th September 2023, and $32 trillion on 15th June 2023. Before …
The world is looking at a debt crisis that will span the rest of this decade and well into the next $307.4 trillion of world debt! It’s not going to end well; economists warn with global borrowings hitting a record of $307.4 trillion in September 2023. Debt at this level is unsustainable. Both emerging markets and high-income …
A Downgrade Amidst Economic Slowdown In a significant development that has raised concerns among investors and policymakers worldwide, China’s debt outlook has been downgraded as the country grapples with a slowing economy. This move reflects growing apprehensions about the sustainability of China’s economic growth and its ability to manage its burgeoning debt. Moody’s issued the …
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U.S. citizens have accumulated a record-breaking $1 trillion in credit card debt. The Federal Reserve’s interest rate hikes through 2023 have caused average interest rates for credit cards to spike to more than 22%. Rates on retail credit cards are even higher, nearing 29% on average. Despite rising costs and higher borrowing rates, a record number of …
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The amount of U.S. debt is a complex and controversial topic that has different perspectives, implications and opinion. According to the U.S. Treasury Fiscal Data, the national debt of the United States was $33.52 trillion as of 23rd October 2023. This includes both the debt held by the public, which is the amount the federal government owes to …
The interest the government pays on national debt has reached a 20-year high as the rate on 30-year bonds touches 5.05%. A rise in the cost of borrowing comes at a difficult time for the chancellor, Jeremy Hunt, as he prepares for the autumn statement on 22nd November 2023. The chancellor has already made clear …
Slow-Growing UK Faces Over £2.6 Trillion Debt Pile £2,600,000,000,000 in debt The amount the UK owes exceeds GDP for first time since 1961. Inflation-linked bonds mean the UK is paying more than its peers. From the financial crisis to Russia’s invasion of Ukraine, the UK has borrowed and spent its way out of every jam. …
Problem? Americans are using their credit cards more than ever, pushing the total balance to over $1 trillion for the first time in history, according to a report from the New York Federal Reserve. The report, released August 2023, showed that credit card balances rose by $45 billion to $1.03 trillion in the second quarter …
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Trump calls it his ‘Big Beautiful Bill’, but Musk calls it a ‘Disgusting Abomination’ – who’s right? Trump’s Big Beautiful Bill is a sweeping tax and spending package aimed at making his 2017 tax cuts permanent while introducing new tax breaks and budget reforms. It eliminates taxes on tips and overtime, raises the State and …
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Elon Musk has dramatically distanced himself from Donald Trump’s latest tax-and-spending bill, branding it a ‘disgusting abomination’ in a fiery post on X. The Tesla and SpaceX CEO, once a key financial backer of Trump’s 2024 campaign, has now turned against the administration’s ‘One Big Beautiful Bill’, warning that it will explode the federal deficit …
Continue reading “Well – that didn’t last long – is the ‘love in’ over already?”
Investors are increasingly favouring short-term U.S. Treasury securities, with notable figures like Warren Buffett taking sizeable positions. This shift is driven by concerns over economic instability, fluctuating bond yields, and government spending. Short-term Treasuries, such as T-bills with maturities under a year, offer a safer haven compared to longer-term bonds, which are more vulnerable to …
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The U.S. bond market is experiencing some turbulence due to rising Treasury yields and concerns over government debt. Investors are demanding higher yields because they’re worried about the GOP’s tax-cut plans, which could lead to increased borrowing and a larger deficit. Additionally, the recent Trump tax bill has caused Treasury bond yields to surge, as …
In February 2025, UK government borrowing reached £10.7 billion, significantly exceeding the £6.5 billion forecast by the Office for Budget Responsibility (OBR) This marks the fourth-highest borrowing figure for February since records began in 1993. The unexpected rise in borrowing has intensified pressure on Chancellor Rachel Reeves ahead of her upcoming Spring Statement. The increase …
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The latest UK borrowing figures, reveal a significant increase in public sector net borrowing. In December 2024, the UK government borrowed £17.8 billion, which is the highest figure for the month for four years. This amount was reportedly £10.1 billion higher than the same month last year and exceeded the £14.1 billion forecast by most …
The pound has continued to fall after UK government borrowing costs rose and concerns grew about public finances Sterling dropped as UK 10-year borrowing costs surged to their highest level since the 2008 financial crisis when bank borrowing virtually ground to a halt. Economists have warned the rising costs could lead to further tax rises …
Continue reading “Has ‘Rachel from accounts’ messed up the UK economy?”
The Federal Open Market Committee (FOMC) has reduced its benchmark overnight borrowing rate by 0.25%, bringing it to a target range of 4.50%-4.75%. This move follows September’s significant 0.5% cut. The overnight borrowing rate, while primarily affecting interbank lending rates, also typically impacts consumer debt products including mortgages, credit cards, auto and other loans.
Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, has recently made headlines in the U.S. with his stark predictions about the potential economic fallout if Donald Trump wins the upcoming presidential election. This is unusual, as you are more likely to hear these proposals in a crisis, when desperate times demand desperate …
In a substantial effort to strengthen the infrastructure required for artificial intelligence (AI), BlackRock and Microsoft have unveiled a significant fundraising endeavour. The initiative, dubbed the Global AI Infrastructure Investment Partnership (GAIIP), seeks to secure $30 billion in private equity capital, with the possibility of leveraging up to $100 billion including debt financing. The main …
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