US public debt subject to limit is $14.29trillion, US national debt is $14.49trillion for which US government pays $3.62 trillion dollar interest. In simple words, it means every US Citizen owes $46482 and pays $11639 interest. The circulating money is indeed making prices dearer for rest of the world. After all globalization has made the world a global village and US dollar a global currency, although it holds this status for a long time but just think of it, the amount of money injected after the global financial crisis and now talks are well underway for raising the debt ceiling.
First of all, if you read the price action of most of the commodities from the start of the new millennium, lower interest reasoned for higher prices, then after the financial crisis of 2008, $1.3trillion injection took prices even higher and because of ample liquidity and low interest rates investors could hold their buying mostly in future exchanges, indeed on just earnest money.
The price hike pinch is felt all around the world, starting from crude oil as a main driving force to even food items, like rice, wheat and sugar. Lately, there was some retreat in this trend as Fed had said it would take quantitative money out from the system in the second half, but now news of raising debt ceiling, the additional money would increase money supply and prices.
US citizens are keeping quite, the latest non-farm payroll data is suggesting that quantitative easing did little in creating jobs, the money provided only supported big financial institutions to make killing and the debt ceiling would only give them opportunity to make money in the future.
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