Our national debt has hit an alarming $33 trillion and shows no sign of slowing down, signaling a looming financial crisis. The situation becomes even more concerning as recent bond auctions fail to raise the desired amounts, with some falling significantly short.
The USA is on an unsustainable financial path, with projections suggesting a potential default within the next 20 years if corrective measures are not taken. Bloomberg Intelligence emphasizes the urgency of the situation.
To put it into perspective, the United States collects $5 trillion in revenue annually, with $2.5 trillion coming from personal income taxes. Astonishingly, $1 trillion per year, equivalent to 40% of personal income taxes, is solely dedicated to servicing the interest on our national debt.
The problem intensifies as $8 trillion in government debt matures this year, requiring refinancing at new, higher interest rates. This will inevitably lead to a surge in interest payments on the national debt.
As the USA grapples with an inflection point, prominent figures like Ray Dalio warn that the debt problem is poised to worsen rapidly. CNBC reports Dalio’s insights, highlighting the urgency for the nation to address its escalating debt crisis before it spirals further out of control.
The trajectory is clear – with escalating interest payments, maturing debt at higher rates, and increasing deficits funded by trillions in new debt, the financial outlook is dire. It’s high time for comprehensive solutions and strategic financial planning to avert a potential economic catastrophe.
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It’s over 🔥 pic.twitter.com/UqwdYsEkUw
— Kim Dotcom (@KimDotcom) December 4, 2023
US debt will become unsustainable and trigger default in about 20 years, if it stays on current path
US debt will become unsustainable in roughly 20 years if it doesn't change course, a Penn Wharton Budget Model determined.
After that, no amount of tax hikes or spending cuts… pic.twitter.com/DxaqGL65qM
— floridanow1 (@floridanow1) December 4, 2023
The USA collects $5 trillion per year in revenue. Of that $2.5 trillion is personal income taxes.
$1 trillion per year (40% of personal income taxes) is paying the interest on the national debt.
$8 trillion in govt debt is maturing this year, old debt at lower interest rates.… t.co/D9VeNTsAiD
— Wall Street Silver (@WallStreetSilv) December 4, 2023
Ray Dalio has said that U.S. reaching an inflection point where the debt problem quickly gets even worse, per CNBC.
— unusual_whales (@unusual_whales) December 4, 2023