Under current fiscal policies, the Debt to GDP ratio in the US is projected to reach 200% within 20 years. Before 2020, the Debt to GDP in the US was approximately 100%, and prior to 2008, it was around 60%. Current estimates indicate that the US will accumulate $50 trillion in total debt by 2033. This translates to the US adding $218 million in debt every hour until 2033. The scenario becomes precarious if the Federal Reserve fails to achieve a soft landing. The forward curves have recently reinverted, showcasing a significant move from around 50% inverted to 90% inverted in a short span.
Under current fiscal policies, the Debt to GDP ratio in the US is projected to hit 200% within 20 years.
Prior to 2020, Debt to GDP in the US was ~100% and prior to 2008 it was ~60%.
Current estimates show the US hitting $50 trillion in total debt by 2033.
This means that the… pic.twitter.com/i6xB8zTyZO
— The Kobeissi Letter (@KobeissiLetter) February 5, 2024
Forward curves have reinverted. Pretty amazing move from ~50% inverted to 90% inverted in a few weeks. pic.twitter.com/TiROu9RUSG
— Michael Green (@profplum99) February 5, 2024