Just one day before a potential U.S. government shutdown, U.S. President Joe Biden signed a stopgap funding bill on November 16th to keep the federal government operational. This act essentially means that U.S. policy-makers have once again deferred the fiscal time bomb by a few months. In reality, the U.S. debt issue has become a persistent ailment for both the American government and global investors Gwadar Pro reported on Friday.
As the Federal Reserve enters a cycle of interest rate hikes, U.S. debt has been snowballing and will potentially trigger an avalanche in the international financial system. Just how large has this snowball become? The U.S. federal debt, as reported by the U.S. Treasury Department on October 26th, 2023, has skyrocketed to $33.67 trillion, an increase of $2.27 trillion since the temporary suspension of the $31.4 trillion debt ceiling took effect on June 3rd, 2023, set to expire at the beginning of 2025. The debt is projected to exceed $50 trillion by 2030.—Agencies
