Money distribution USA

From Global Research

From this mornin's Zero Hedge. No reason for concern obviously as my debt to income ratio relies upon US currency values in San Francisco.

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The so-called “expansionary policies” have not been an instrument for reducing debt, but rather for increasing it. In the second quarter of 2022, according to the Institute of International Finance (IIF), the global debt-to-GDP ratio will approach 350% of GDP. IIF anticipates that the global debt-to-GDP ratio will reach 352% by the end of 2022.

Global issuances of high-yield debt have slowed but remain elevated. According to the IMF, the total issuance of European and American high-yield bonds reached a record high of $1,6 trillion in 2021, as businesses and investors capitalized on still-low interest rates and high liquidity. According to the IMF, high-yield bond issuances in the United States and Europe will reach $700 billion in 2022, similar to 2008 levels. All of the risky debt accumulated over the past few years will need to be refinanced between 2023 and 2025, requiring the refinancing of over $10 trillion of the riskiest debt at much higher interest rates and with less liquidity.

Moody’s estimates that United States corporate debt maturities will total $785 billion in 2023 and $800 billion in 2024. This increases the maturities of the Federal government. The United States has $31 trillion in outstanding debt with a five-year average maturity, resulting in $5 trillion in refinancing needs during fiscal 2023 and a $2 trillion budget deficit. Knowing that the federal debt of the United States will be refinanced increases the risk of crowding out and liquidity stress on the debt market.

According to The Economist, the cumulative interest bill for the United States between 2023 and 2027 should be less than 3% of GDP, which appears manageable. However, as a result of the current path of rate hikes, this number has increased, which exacerbates an already unsustainable fiscal problem

From Global Research

The U.S. Government tries to hide how obscenely top-end the nation’s wealth-distribution is; but one remarkably clear presentation of it (the U.S. private-wealth distribution)  was the web-page from the Board of Governors of the Federal Reserve System that presented an “Overview” of “Distribution of Wealth” starting in “1989:Q3” and extending up till “2021:Q2”. (It will be presented even more clearly here, using their reported data.)

The following shows breakdowns of the wealth-quintiles — percentages of the wealth held by the nation’s households, all the way from the top fifth to the bottom fifth — in the “US$ Trillions” for each fifth — during the latter quarter (the “2021:Q2”), as is shown on that web-page:

• Top 5th =Top 20% total $94.68T ($36.23T for top 1% + $58.45T for all of the next 19%)

• 2nd 5th =Top 40%-Top 20%: $20.68T

• 3rd 5th = Top 60%-Top 40%: $9.62T

• 4th 5th = Top 80%-Top 60%: $5.41T

• 5th 5th = Too 100%-Top 80%: $3.69T

• 100% = $94.68T + $20.68T + $9.62T + $5.41T + $3.69T = $134.08T total.

Therefore: Top 20% = 70.6% of all wealth.

• Top 40% = 86.0% of all wealth.

• Top 60% = 93.2% of all wealth.

• Top 80% = 97.2% of all wealth.

• Top 100% = 100% of all wealth.

• Additionally shown was the top 1%:

• Top 1% (“99-100%”): $36.23T

• Top 20% less that top 1%: $58.45T

• So: the top 1% (the wealthiest 5% of the wealthiest 20%) held 38.3% of all the top fifth’s $94.68T.

• Top 1% =  27% of all wealth.

• (Bottom 1% wasn’t shown.)

• Bottom 20% = 2.8% of all wealth.

• Bottom 40% = 6.8%

• Bottom 60% = 14.0%

• Bottom 80% = 29.4%

Virtually all people who have the discretionary cash to be able to donate significantly to the politicians they favor are in the top fifth — the people who have 70.6% of all wealth. They dominate the nation’s political money. Almost all of the virtually bribes that fill political campaign-chests in America come from the richest 20% of Americans — and the top 1% contain all of the ‘king-makers.” And if you’re in the bottom 80% of wealth-holders in the U.S., you’re not represented, at all, in the U.S. Government.

The top 1% have vastly more, than rest of the top 20%, available to them to donate to their favored politicians, because these people — the top-one-percenters — hold the corporate board seats, and select the corporate executives who hire the congressional lobbyists to entertain and reward and hire the crucial congress-members so as to serve their corporations, and serve those top one-percenters who control all of those corporations. Included in these corporations are the ones that control all of the major, and most of the minor, news-media and that thereby shape the ‘knowledge’ and thus the views that most of the voters (in each Party) hold.