U.S. Debt Grew by $572 Billion in Two Weeks, Exceeding the Combined GDP of China, Japan, Germany, and the United Kingdom
The United States government added another half a trillion dollars to its ballooning debt in only two weeks.
As of June 15th, the US national debt was $32.03 trillion, an increase of $571 billion from the previously recorded date of June 1st ($31.46 trillion).
Even if every American home paid $1,000 monthly towards paying down the debt, it would still take 20 years at current interest rates, which are over $2 billion daily.
Despite the fact that the public and the media are paying more attention to the US debt crisis, most experts believe it will worsen over the next decade.
The CEO of a worldwide financial advising organisation, Nigel Green, recently said that the likelihood of the United States’ debt reaching $50 trillion was far higher than the likelihood of it decreasing to more realistic proportions.
“What are the drawbacks, especially for Americans? Unfortunately, the debt level keeps rising. So, we’re at $31 Trillion at the moment. The interest rate needed to bring their current tax obligation is 8%.
Of course, you may counter with, “Well, it’s only that percentage.” You might make that case. But if it keeps rising and there’s a recession at some point, the United States will have trouble paying its bills.
Right now, it’s at $31 trillion, so I have to wonder whether it’s more likely to drop to $25 trillion or rise to $50 trillion.
More probable that it is going to $25 trillion is for it to get to $50 trillion. Thus, the condition persists. It’s not a bust today, but America will eventually have to pay back its debt.”
Bridgewater Associates founder and biggest hedge fund manager Ray Dalio reportedly said the United States was experiencing a “very classic late big-cycle debt crisis.”
Debt levels are high. It must be purchased. The interest rate must be substantial. If we keep going in this direction, considering what is anticipated to happen over the next five and ten years, you will reach a point when striking that balance becomes challenging.
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