Why Crypto Matters: Global Public Debt Soars To Record Levels
Quick Take
- Global debt is reaching new records amid fiscal policy during the pandemic.
- U.S. national debt alone, is on its way to a record $27 trillion.
Global governments have issued trillions in stimulus in the wake of the economic uncertainty caused by the coronavirus outbreak. According to a recent blog post published by the IMF, the global fiscal response is now close to a jaw-dropping $11 trillion. However, while these fiscal policies may be effective, they have contributed to the global public debt skyrocketing to record levels.
With the global debt growing at rapid levels, the International Monetary Funds urges governments to proceed with caution. The rapidly rising global debt may raise concerns about inflation as global debt is rising faster than the GDP.
U.S. National Debt On Its Way To $27 Trillion
As reported by The Crypto Associate, the U.S. national debt recently crossed $26 trillion for the first time. Moreover, the debt has been growing at a rapid pace, up over $3 trillion since January. Jerome Powell, Chairman of the Federal Reserve, has also commented on the matter during the most-recent semi-annual testimony.
The United States federal budget has been on an unsustainable path for years now
Jerome Powell (Federal Reserve Chairman)
Furthermore, this may not be the end as the Committee for a Responsible Federal Budget, a non-partisan organization, estimates that federal debt will grow by $4 trillion in 2020.
As reported previously by The Crypto Associate, the liquid U.S. money supply has been surging amid the pandemic. With the money supply and debt increasing at a rapid pace, concerns over potential inflation and its impact on the U.S. dollar arise.
Cover Image by: Freddie Collins via Unsplash
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