US Debt Mounting With Incredible Pace: Threats and Consequences
The rate at which the total US debt is increasing is substantial and the deficit levels have surpassed those during World Warr II.
Following its surpassing of the $32 trillion milestone on June 15th, the outstanding American debt has already risen by an additional $246 billion, as reported by recent data from the Treasury Department.
The current total of $32.246 trillion encompasses both public debt and debt held by federal trust funds and other government accounts.
The remarkable growth in debt coincides with the release of a new report by the nonpartisan US Congressional Budget Office, which sheds light on the long-term budget outlook for America.
According to the agency, US deficits are expected to continue their upward trajectory in the coming years.
The agency indicated that by the conclusion of 2023, the federal debt held by the public is projected to reach 98% of GDP. This trend is anticipated to continue, surpassing historical records in 2029 with a debt-to-GDP ratio of 107%. This upward trajectory is forecasted to persist, escalating further to 181% of GDP by 2053.
READ MORE: Nations Seek Alternatives to Dollar Amidst Sanctions and Currency Fragmentation
These heightened and increasing debt levels are expected to hinder economic growth and result in amplified interest payments to foreign holders of US debt. They pose significant risks to the fiscal and economic prospects of the country. Furthermore, they may impose limitations on lawmakers’ policy decisions, necessitating careful considerations and potentially constraining their choices.
Additionally, the Congressional Budget Office predicts that the US deficit, estimated to reach 5.8% of the gross domestic product (GDP) by the end of this year, will reach 10% of GDP by 2053.
This level of deficit has only been surpassed during World War II, and the sudden surge in government expenditure observed in 2020.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
