The rising price of paying the national debt is a risk for Trump's promises on growth and inflation

Donald Trump's plans for the economy and a significant debt problem could limit his ability to deliver on them due to high interest rates and the cost of repaying the Federal Government's existing debt.

The Federal debt is at roughly $36 trillion, and the spike in inflation after the Coronavirus pandemic has pushed up the government's borrowing costs.

This means that debt service next year will exceed spending on national security.

The higher cost of servicing the debt gives Trump less room to maneuver with the Federal budget as he seeks income tax cuts.

Reference Sources

1. fortune - As US debt hits $36 trillion, about 1 in 5 dollars the government spends repays investors for borrowed money
2. abc - The rising price of paying the national debt is a risk for Trump's promises on growth and inflation
3. abc - Rising price of paying national debt a risk for Trump's promises on growth, inflation
4. usnews - The Rising Price of Paying the National Debt Is a Risk for Trump's Promises on Growth and Inflation
5. yahooen - Yahoo Finance

UK Ministers seek EU negotiator to lead reset talks

The UK government is seeking a senior negotiator to lead Prime Minister Keir Starmer's efforts to "reset" ties with the European Union (EU).

The role, which comes with a salary of up to £200,000 per year, will act as an adviser to Starmer on trade, migration, economic, and international issues related to the Eu.

The announcement comes amid a broader thaw in relations between Brussels and London after the election of Starmer's Labor party in July.

However, shadow foreign Secretary Priti Patel has accused Starmer of "undermining Brexit" and the will of the people with his plans to hire an Eu negotiator.

The trade and co-operation agreement, the basis for the Uk-Eu relationship after Brexit, will be subject to renewal talks in 2025.

Reference Sources

1. politico - UK seeks EU negotiator as Starmer pushes ‘reset’ with Brussels
2. express - 'Labour arrogantly capitulates to EU' with Keir Starmer accused of another Brexit betrayal
3. bbc - UK wants to hire EU negotiator to 'reset' relations
4. standard - Ministers seek EU negotiator to lead reset talks
5. express - Keir Starmer hiring £200k EU negotiator to 'reset UK's relationship' with the bloc

Traders expect Bitcoin bull run in 2025

Bitcoin, the world's most popular Cryptocurrency, has hit record highs and neared $100,000 this past week, having doubled in value throughout 2024.

Bitcoin's surge up about 130% this year is one of the "Trump trades," industry players expect the incoming Trump administration to bring a more crypto-friendly approach to regulating the Digital currency.

However, behind the scenes, a standoff between sellers and buyers is happening behind the scenes. With a new Ath in terms of profit taking expressed in dollars, Bitcoin reaches an impressive milestone: 4 billion dollars withdrawn from the market.

This amount exceeds 53% the May 2021 peak and double that of November 2021.

Reference Sources

1. eurodayfr - Bitcoin near $100,000: The battle of supply and demand continues
2. bangkokpost - Traders expect Bitcoin bull run in 2025
3. businessinsider - What to know about the potential for a national bitcoin reserve that's got the crypto market so excited
4. latimes - With bitcoin ticking closer to $100,000, here’s a refresher on cryptocurrency
5. usatoday - Bitcoin values hit record highs. Should you invest in cryptocurrency? Here's how it works

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.

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Uploaded by Ian Huang