With debts piling up and lenders growing nervous, the U.S. Virgin Islands is approaching the same kind of fiscal crisis that engulfed Puerto Rico.
The federal Parent Plus loan program has millions of borrowers, many with subprime credit ratings. Its default rate exceeds the rate for U.S. mortgages at the peak of the housing crisis, and the debt is almost impossible to extinguish through bankruptcy.
Many of President Donald Trump’s backers cite the U.S. trade imbalance, federal debt and the cost of foreign wars as causes of their unease—not health insurance or immigrants, Gerald F. Seib writes.
Treasury Secretary Steven Mnuchin wrote to lawmakers to inform them that he’ll employ measures to avoid breaching the borrowing limit. The suspension of the limit expires Mar. 16
The federal deficit will increase by $10 trillion over the next decade if current laws remain basically unchanged, according to a report released Tuesday by the nonpartisan Congressional Budget Office.
Trump’s proposals would add 26.5 times more to the national debt than Clinton’s plans, according to a new analysis by the Center for a Responsible Federal Budget.
While the staggering national debt has virtually disappeared as a 2016 campaign issue amid White House assurances the problem has faded, D.C.’s budget scorekeepers have issued a stark warning that the red ink is growing once again – increasing the likelihood of a full-blown “fiscal crisis.”