America’s budget is already in an awful state; must roll over debt worth nearly $9trn (30% of GDP).

 

The currency’s dominance enables very high debts and deficits, meaning a plunge might spell disaster

Global demand for the dollar and Treasuries has enabled America to run a more extravagant budget than that which sparked the crisis in Britain. This special status is known as “exorbitant privilege”. 

The federal government’s net debts are worth about 100% of GDP. In the past 12 months, America has disbursed 7% of GDP more than it borrowed, and spent more on interest payments than on national defence.

Over the next year officials must roll over debt worth nearly $9trn (30% of GDP).

The Economist 13 April 2025

https://www.economist.com/finance-and-economics/2025/04/13/a-flight-from-the-dollar-could-wreck-americas-budget

RE: Problemet doldes länge genom att räntan var nära noll. När lånen som togs då skall rullas runt med stigande räntor blir det inte så roligt.

11 april

https://englundmacro.blogspot.com/2025/04/elementa-handelsbalans-och-bytesbalans.html

The concern now among bankers and hedge fund managers is that something, somewhere could break

https://englundmacro.blogspot.com/2025/04/if-dollar-no-longer-rules-world-global.html

Tillbaka till Rolfs länktips 13 april 2025

https://englundmacro.blogspot.com/2025/04/rolfs-lanktips-13-april-2025.html