The US government has consistently shown fiscal irresponsibility
Debt-to-GDP is projected to reach 200% by 2050. The government is going to face a major problem with the amount of money they will have to pay in interest. Everybody, except the US government, seems to understand the unsustainability of this path. Source: Game of Trades
China shows signs of stabilization after a long period of slowdown and disappoitning data over the spring
China’s Q3 growth exceeds forecast, buoyed by consumer spending and industrial production. China posted 4.9% growth in the July to September quarter from a year earlier, stronger than the median forecast for 4.6%. Quarter on quarter, China’s GDP grew 1.3% in the third quarter, helped by a downward revision for Q2 from +0.8% to 0.5%.
There is a different culture of public debt in Germany than in France
Nevertheless, French Finance Minister Le Maire hopes to find a compromise for new budget rules w/Germany. “We will continue to work w/Christian Lindner in the coming weeks to try to reach a Franco-German accord that could serve as a basis for a wider deal,” Le Maire said ahead of a meeting with his EU peers in Luxembourg. Source: HolgerZ, Bloomberg
At the time of rising bond yields, here's a list of teh most indebted companies in the world by Genuine Impact
🚗Toyota Group is the most indebted company globally in 2023. 🏠While Evergrande Group, one of China’s biggest property developers, has lower debt than Toyota, its performance is significantly inferior to Toyota. It recently faced a debt crisis and is on the verge of collapse.
Italy 10y risk spread over German 10y bunds back >200bps as budget day arrives
Italy PM Meloni to unveil tax-cutting 2024 budget today amid debt worries. Source: Bloomberg, HolgerZ
BREAKING: A record 447,000 Americans are now working 2 full-time jobs, per Joe Consorti
Source: Barchart, Bloomberg
The Interest Expense on US Public Debt rose to $883 billion over the past year, another record high
If it continues to increase at the current pace it will soon be the largest line item in the Federal budget, surpassing Social Security. Source: Charlie Bilello
The United States is on an unsustainable fiscal path warns the IMF which projects the U.S. deficit to be 'elevated and persistent
Source: barchart, CBO
