The US needs to borrow – but lenders may be hard to find

30 July 2020 (Last Updated July 30th, 2020 08:19)

30 July

The global economy earlier lent money to the US enabling the country to manage its public debt.

However, with the majority of the countries facing economic turmoil due to the Covid-19 pandemic, the US may not find lenders so easy to come by.

Brian Riedl, senior fellow at the Manhattan Institute shared an article on the rising national debt.

The Covid-19 pandemic and the subsequent stimulus packages has led to the increase in national debt in 2020 to $4tn.

By 2030, the national debt held by the public is expected to reach $41tn without accounting any additional stimulus packages planned to be announced.

The article questions as to who will lend the government the trillions of dollars, which is expected to create an unprecedented burden.

The Federal Reserve may have to continue buying government debt in the future.

In other news: The US government is considering a proposal to reduce the $600 per week unemployment benefits to $200 per week until October.

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