A stark revelation from the International Monetary Fund (IMF) signals a troubling trend in the world’s economic landscape. Global public debt has tripled since the mid-1970s, reaching a staggering 92% of the world’s combined gross domestic product (GDP), surpassing $91 trillion by the end of 2022. Concurrently, private debt has also experienced a tripling since 1960, standing at 146% of GDP, nearing $144 trillion.
John Authers, in his insights for BBG, sheds light on the alarming trajectory of global debt, emphasizing its exponential growth over the decades. This concerning reality prompts questions about the sustainability of such levels and the potential consequences for the global economy.
In the context of the United States, the situation is exacerbated by an accelerating rate of debt accumulation. Between June 2023 and December 2023 alone, the U.S. added another $2.6 trillion to its debt, pushing the total from $31.4 trillion to a staggering $34 trillion. The trajectory of the U.S. national debt forms a hockey stick chart, depicting a rapid upward spiral, and what’s more concerning is the lack of discourse on this issue within Washington, D.C.
The exponential growth in U.S. government debt raises critical questions about the future. With each citizen’s share of the national debt now standing at $98,600, concerns mount regarding the long-term economic implications. The absence of meaningful discussions within the political sphere about the trajectory of national debt further amplifies worries about the potential risks and challenges that lie ahead.
As global and national debt levels continue to surge, the imperative for responsible fiscal policies, international cooperation, and thoughtful economic strategies becomes more pressing than ever. Addressing the root causes of this debt surge and formulating sustainable solutions are essential to mitigating the potential economic fallout.
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"According to the International Monetary Fund, global public debt has tripled since the mid-1970s to reach 92% of the world’s combined gross domestic product (more than $91 trillion) by the end of 2022. Since 1960, private debt has tripled to 146% of GDP (or close to $144… pic.twitter.com/pbq2lcRU6J
— Tracy (𝒞𝒽𝒾 ) (@chigrl) December 17, 2023
The US added another $2.6 trillion of debt between June 2023 and December 2023. $31.4 trillion to $34 trillion now.
The rate of growth in the US national debt is accelerating into a hockey stick chart and nobody in Washington DC is even talking about.
How does this end? pic.twitter.com/BGIJPHR4o2
— Wall Street Silver (@WallStreetSilv) December 18, 2023
🇺🇸 US government debt per citizen has risen to $98,600.
— Win Smart, CFA (@WinfieldSmart) December 18, 2023
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