🌪️ Is US Debt Out Of Control?

Good morning. US stock futures dipped in Wednesday morning trading as investors consider market correction scenarios.

💳 US debt reaches historic high

📝 Our report: Uncle Sam's credit card bill just hit a jaw-dropping $34 trillion! The US federal government debt just set a record high in what is likely to be a major topic of discussion in the 2024 election cycle.  

 🔑 Key points:

• The U.S. Treasury Department issued a report logging U.S. finances, which have become a source of tension in a politically divided Washington that could possibly see parts of the government shutdown without an annual budget in place.

• The US national debt eclipsed $34 trillion several years sooner than pre-pandemic projections. The Congressional Budget Office’s January 2020 projections had gross federal debt eclipsing $34 trillion in fiscal year 2029.

• Last June, the Congressional Budget Office estimated in its 30-year outlook that publicly held debt will be equal to a record 181% of American economic activity by 2053.

💡 So what: The impact of the U.S. federal debt on the economy is a multifaceted and debated subject. A growing federal debt raises concerns about increased interest payments, potentially diverting funds from essential programs. Inter-generational equity also becomes a consideration, as future generations may face higher taxes or reduced services to cover the growing debt burden. While deficit spending during economic downturns can stimulate short-term growth, it requires careful management to avoid long-term debt escalation.

Wednesday - No Major Economic News

Thursday - Initial Jobless Claims (wk end Dec 30)

Friday - US Unemployment Rate

 📈 Cathie Wood shares these 7 investing tips!

💸 This is how you write a business plan!

🪓 Harvard University president resigns

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✖️ X takes valuation hit

WHAT: Elon Musk's X is taking a dip in the financial rollercoaster, now worth less than a third of the billionaire's initial splurge on the former Twitter Inc. Fidelity, the sidekick in Musk's $44 billion shopping spree, decided to trim the value of its X holding by another 11%, according to their latest portfolio update.

WHY: Musk’s acquisition of Twitter in late October 2022 was followed by a cascade of abrupt changes, from drastic layoffs and shuttering of international offices to upending the platform’s moderation policies and verification system.

🚙 Tesla sets record deliveries but falls short of Chinese EV manufacturer

WHAT: Tesla played the electric vehicle game of musical chairs and, well, BYD Co. managed to snag a seat ahead in global electric-car sales. Tesla handed over 484,507 vehicles in the last three months of 2023, beating analysts’ average estimate for 483,173 deliveries. BYD sold 526,409 fully electric vehicles in the quarter to become the new No. 1 in EVs, driven mainly by its much broader lineup of cheaper models in China.

WHY: The change in EV sales rankings reflects China’s growing clout in the global automotive industry. After surpassing the US, South Korea and Germany the last few years, China may have overtaken Japan as the world’s largest passenger-car exporter in 2023.

🤝🏽 Saudis join BRICS

WHAT: Move over, BRICS—Saudi Arabia just pulled up a chair to the global power table! Saudi state TV said that the kingdom had officially joined the BRICS bloc of countries. Saudi Arabia's foreign minister had said in August the kingdom would study the details before the proposed Jan. 1 joining date and take "the appropriate decision".

WHY: The BRICs bloc previously included Brazil, Russia, India, China, and South Africa, but is set to double with Saudi Arabia joining the United Arab Emirates, Egypt, Iran, and Ethiopia as new members.

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