{"id":18034,"date":"2021-08-16T07:29:55","date_gmt":"2021-08-16T05:29:55","guid":{"rendered":"https:\/\/bernstein-bank.com\/?p=18034\/"},"modified":"2021-08-16T07:29:55","modified_gmt":"2021-08-16T05:29:55","slug":"how-did-the-us-national-debt-go-to-zero","status":"publish","type":"post","link":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/","title":{"rendered":"How did the US national debt go to zero?"},"content":{"rendered":"<table cellspacing=\"0\" cellpadding=\"4\">\n<tbody>\n<tr>\n<th>\n<h4 style=\"text-align: center;\"><span style=\"color: #e2b365;\">Gold<\/span>\u00a0 1756,685<br \/>\n(<span style=\"color: #ff0000;\">-0,11%<\/span>)<\/h4>\n<\/th>\n<th>\n<h4 style=\"text-align: center;\"><span style=\"color: #e2b365;\">EURUSD<\/span>\u00a0 \u00a01,1792<br \/>\n(<span style=\"color: #ff0000;\">-0,05%<\/span>)<\/h4>\n<\/th>\n<th>\n<h4 style=\"text-align: center;\"><span style=\"color: #e2b365;\">DJIA<\/span>\u00a0 35331,50<br \/>\n(<span style=\"color: #ff0000;\">-0,26%<\/span>)<\/h4>\n<\/th>\n<th>\n<h4 style=\"text-align: center;\"><span style=\"color: #e2b365;\">OIL.WTI<\/span>\u00a0 67,705<br \/>\n(<span style=\"color: #ff0000;\">-0,38%<\/span>)<\/h4>\n<\/th>\n<th>\n<h4 style=\"text-align: center;\"><span style=\"color: #e2b365;\">DAX<\/span>\u00a0 15978,50<br \/>\n(<span style=\"color: #008000;\">+0,02%<\/span>)<\/h4>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"justify\">In last Thursday&#8217;s newsletter we promised to explain why the US government benefits from high inflation. The main reason is the inability to do anything about the huge rising national debt.<\/p>\n<p style=\"text-align: center;\"><strong><br \/>\nS&amp;P 500<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18035 aligncenter\" src=\"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/08\/SP-500-2.png\" alt=\"S&amp;P 500\" width=\"600\" height=\"237\" \/><\/p>\n<p align=\"justify\">The fight against the coronavirus pandemic has cost the US economy huge amounts of unbudgeted money. Fortunately for the authorities, these sums can easily be borrowed on the open market. Today, the US national debt is close to $28.5 trillion. This is more than the annual GDP. Yet spending continues to rise. And US President Joe Biden is about to raise the national debt ceiling once again. Republicans in Congress continue to haggle, demanding lower spending. But it is clear to everyone that the debt ceiling will once again be raised.<br \/>\nWhat are the risks to the US economy? In a low-interest-rate environment, almost nothing. But rates will rise at some point in time. And that would be a real disaster for the government. Suppose the interest rate rises to the current rate of inflation of 5.5% per year. This would lead to the fact that there would simply be nothing left to repay the interest. Of course, more money could be printed, but it would be a vicious circle. The new money would accelerate inflation even more. The interest rate will go even higher. And we will have to pay even more on our debts.<br \/>\nFortunately for the American government, interest rates have not risen yet. Inflation, on the other hand, is continuing to accelerate. The only solution to the national debt problem (although no one is saying it openly) is to raise inflation even higher.<br \/>\nWhy? It&#8217;s simple. If prices go up, then so do companies&#8217; profits, their expenses and the income of citizens. And that means that taxes on those amounts go into the budget. At the same time, the American government is paying for its old debts with actually old, already severely devalued money. And the longer this situation lasts (low interest rate on trades + high inflation), the easier it will be to pay off the national debt.<br \/>\nSince the Fed and the US government are interested in accelerating inflation, they will watch closely to ensure that stock markets rise further. What to do about it? It is up to everyone to decide.<\/p>\n<p align=\"justify\">01.50 Japan&#8217;s Q2 GDP<br \/>\n04.00 China Retail Sales in July<br \/>\n14.30 New York Fed manufacturing activity index for August<\/p>\n<hr \/>\n<p style=\"text-align: center;\" align=\"justify\">Important Notes on This Publication:<small> <\/small><\/p>\n<p align=\"justify\"><small>The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold\u00a0 1756,685 (-0,11%) EURUSD\u00a0 \u00a01,1792 (-0,05%) DJIA\u00a0 35331,50 (-0,26%) OIL.WTI\u00a0 67,705 (-0,38%) DAX\u00a0 15978,50 (+0,02%) In last Thursday&#8217;s newsletter we promised to explain why the US government benefits from high&#8230;<\/p>\n","protected":false},"author":37,"featured_media":17595,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-18034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How did the US national debt go to zero? | Bernstein Bank<\/title>\n<meta name=\"description\" content=\"In last Thursday&#039;s newsletter we promised to explain why the US government benefits from high inflation\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How did the US national debt go to zero? | Bernstein Bank\" \/>\n<meta property=\"og:description\" content=\"In last Thursday&#039;s newsletter we promised to explain why the US government benefits from high inflation\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\" \/>\n<meta property=\"og:site_name\" content=\"Bernstein Bank\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-16T05:29:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"455\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Wordpress Support\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Wordpress Support\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\"},\"author\":{\"name\":\"Wordpress Support\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/#\/schema\/person\/f2be4e4423d78d9d97bf1e9a8db9fd48\"},\"headline\":\"How did the US national debt go to zero?\",\"datePublished\":\"2021-08-16T05:29:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\"},\"wordCount\":602,\"image\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"ENH\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\",\"url\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\",\"name\":\"How did the US national debt go to zero? | Bernstein Bank\",\"isPartOf\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg\",\"datePublished\":\"2021-08-16T05:29:55+00:00\",\"author\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/#\/schema\/person\/f2be4e4423d78d9d97bf1e9a8db9fd48\"},\"description\":\"In last Thursday's newsletter we promised to explain why the US government benefits from high inflation\",\"breadcrumb\":{\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#breadcrumb\"},\"inLanguage\":\"ENH\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"ENH\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage\",\"url\":\"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg\",\"contentUrl\":\"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg\",\"width\":800,\"height\":455,\"caption\":\"morning-news\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/bernstein-bank.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How did the US national debt go to zero?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/#website\",\"url\":\"https:\/\/bernstein-bank.com\/en\/\",\"name\":\"Bernstein Bank\",\"description\":\"Bernstein Bank GmbH\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/bernstein-bank.com\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"ENH\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/bernstein-bank.com\/en\/#\/schema\/person\/f2be4e4423d78d9d97bf1e9a8db9fd48\",\"name\":\"Wordpress Support\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How did the US national debt go to zero? | Bernstein Bank","description":"In last Thursday's newsletter we promised to explain why the US government benefits from high inflation","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/","og_locale":"en_US","og_type":"article","og_title":"How did the US national debt go to zero? | Bernstein Bank","og_description":"In last Thursday's newsletter we promised to explain why the US government benefits from high inflation","og_url":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/","og_site_name":"Bernstein Bank","article_published_time":"2021-08-16T05:29:55+00:00","og_image":[{"width":800,"height":455,"url":"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg","type":"image\/jpeg"}],"author":"Wordpress Support","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Wordpress Support","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#article","isPartOf":{"@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/"},"author":{"name":"Wordpress Support","@id":"https:\/\/bernstein-bank.com\/en\/#\/schema\/person\/f2be4e4423d78d9d97bf1e9a8db9fd48"},"headline":"How did the US national debt go to zero?","datePublished":"2021-08-16T05:29:55+00:00","mainEntityOfPage":{"@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/"},"wordCount":602,"image":{"@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage"},"thumbnailUrl":"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg","articleSection":["News"],"inLanguage":"ENH"},{"@type":"WebPage","@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/","url":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/","name":"How did the US national debt go to zero? | Bernstein Bank","isPartOf":{"@id":"https:\/\/bernstein-bank.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage"},"image":{"@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage"},"thumbnailUrl":"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg","datePublished":"2021-08-16T05:29:55+00:00","author":{"@id":"https:\/\/bernstein-bank.com\/en\/#\/schema\/person\/f2be4e4423d78d9d97bf1e9a8db9fd48"},"description":"In last Thursday's newsletter we promised to explain why the US government benefits from high inflation","breadcrumb":{"@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#breadcrumb"},"inLanguage":"ENH","potentialAction":[{"@type":"ReadAction","target":["https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/"]}]},{"@type":"ImageObject","inLanguage":"ENH","@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#primaryimage","url":"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg","contentUrl":"https:\/\/bernstein-bank.azureedge.net\/wp-content\/uploads\/2021\/03\/morning-news.jpg","width":800,"height":455,"caption":"morning-news"},{"@type":"BreadcrumbList","@id":"https:\/\/bernstein-bank.com\/en\/how-did-the-us-national-debt-go-to-zero\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/bernstein-bank.com\/en\/"},{"@type":"ListItem","position":2,"name":"How did the US national debt go to zero?"}]},{"@type":"WebSite","@id":"https:\/\/bernstein-bank.com\/en\/#website","url":"https:\/\/bernstein-bank.com\/en\/","name":"Bernstein Bank","description":"Bernstein Bank GmbH","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/bernstein-bank.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"ENH"},{"@type":"Person","@id":"https:\/\/bernstein-bank.com\/en\/#\/schema\/person\/f2be4e4423d78d9d97bf1e9a8db9fd48","name":"Wordpress Support"}]}},"_links":{"self":[{"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/posts\/18034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/comments?post=18034"}],"version-history":[{"count":0,"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/posts\/18034\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/media\/17595"}],"wp:attachment":[{"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/media?parent=18034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/categories?post=18034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bernstein-bank.com\/en\/wp-json\/wp\/v2\/tags?post=18034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}