A record $8.9 trillion of government debt will mature over the next year. The government budget deficit in 2024 will be $1.4 trillion according to the CBO, and the Fed has been running down its balance sheet by $60 billion per month. The bottom line is that someone will need to buy more than $10 trillion in US government bonds in 2024. That is more than one-third of US government debt outstanding. And more than one-third of US GDP. This may be a particular challenge when the biggest holders of US Treasuries, namely foreigners, continue to shrink their share. More fundamentally, interest rate-sensitive balance sheets such as households, pensions, and insurance have been the biggest buyers of Treasuries in 2023, and the question is whether they will continue to buy once the Fed starts cutting rates.
- Date Posted:
- February 2, 2024
The U.S. government said it had disrupted a uniquely dangerous and potentially life-threatening Chinese hacking operation that hijacked hundreds of infected routers and used them to covertly target American and allied critical infrastructure networks. Senior officials described the operation in unusually blunt terms as part of an evolving and increasingly worrisome campaign by Beijing to get a foothold in U.S. computer networks responsible for everything from safe drinking water to aviation traffic so it could detonate, at a moment’s notice, damaging cyberattacks during a future conflict. [FBI Director] Wray said Chinese hackers had recently been spotted targeting “our water treatment plants, our electrical grid, our oil and natural gas pipelines, our transportation systems.”