US still shows no signs of addressing debt mountain

Mixed messages from the Obama administration regarding the nation’s public debt burden indicate that any immediate commitment to address the deficit may have been sacrificed on the altar of economic growth. Credit looks at the US’s attempts to tread the fine line between ensuring economic stability and avoiding a hike in debt servicing costs.

obama-state-union-2011
Focus on growth, not debt: President Obama delivers the 2011 State of the Union address

Bond investors punished Europe’s weaker sovereigns and banks alike in 2010, but the US remained an enviable safe haven. Treasury yields were depressed for much of the year, while real GDP growth ran at 2.9%, according to the Bureau of Economic Analysis, well above the Eurozone’s 1.7% rate (as projected by Eurostat).

The US remains the largest bond market and the dollar the world’s reserve currency, while the actions of the Federal Reserve (in buying bonds) and the government (in extending tax

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here