The US has the biggest public debt in its history. As of this year, the federal debt balance hit 34 trillion dollars, and the government is on pace to rack up another 1 trillion in debt every 100 days. The rising debt will cause a multitude of economic problems, including higher inflation rates and lower quality of life, and can destabilize the financial system.
The US government's operations are heavily reliant on debt. This means that it's not just the government's problem-it's our problem. It's crucial that the government is able to sell its debt to a wide range of investors, including institutions, individuals, and other countries. However, the mounting debt levels have cast serious doubt on the government's ability to repay its loans, raising concerns about our collective financial security.
The US treasury had 22 trillion dollars in government bonds as of last year, but that number has shrunk significantly as of this year, suggesting very little demand for government assets. This leads to concerns about whether or not the government will be able to continue funding itself and paying its bills.
https://www.businessinsider.com/us-debt-problem-explained-deficit-gdp-inflation-economy-interest-rates-2024-4
8 comments:
What are the potential consequences for both the government and its citizens if this trend continues unchecked?
Eventually, we will need to begin paying back a portion of the national debt, do you see that happening soon?
What will be the economic outlook if the U.S. is unable to sell its debt?
It is very interesting how the government can take on more and more debt without much consequence. The one question I have is where is most of this debt owed to, and for what? Another question is how much money our government is owed because this could make the number more reasonable.
How will the shrinking demand for US bonds affect the overall economy and investors perception of the US?
looks like over reliance on public debt is coming to haunt the us government
what are some of the ways this can be controlled
What's the main cause of the sudden rise in debt levels? An additional $1 trillion every 100 days is absurd. It's also interesting that the government is aware of this and how it's an issue, yet they seem to pay no mind to it at the moment. Let me know if I'm wrong because I lowkey hope I am lol.
With the economic data speaking for itself, I wonder if politicians are going to focus on the issue and explore avenue to increase the government's income
It's interesting to think about how this level of debt could possibly influence interest rates in the US. If the government continues to run severe deficits are going to be affected.
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