New Delhi
The United States’ economic landscape is currently overshadowed by a mounting debt structure, soaring to a staggering $34 trillion, as reported by usdebtclock and Cryptoslate. This concerning situation is compounded by an annualized interest rate that exceeds $1 trillion, a figure anticipated to breach the $3 trillion mark by the fourth quarter of 2030, according to insights from E J Antoni, an economist at Heritage & Comm4Prosperity. Adding to the complexity is the structural deficit that the US is grappling with. Analyst Joe Consorti highlights a federal deficit of -6.460 per cent of the GDP, indicating that government expenditure significantly outpaces its revenue. Although the deficit reached a peak of -15 per cent during the Covid-19-induced economic crisis, it has since decreased to -6.4 per cent, providing a glimpse into the government’s ongoing efforts to stabilize its financial health. The US national debt has witnessed an alarming surge of $6.7 trillion in just three years, escalating to nearly $34 trillion from $27.3 trillion in December 2020, as per Cryptoslate reports. This rapid increase raises critical concerns about the nation’s fiscal health and the sustainability of its economy. Bank of America (BofA) research underscores the severity of the situation, noting that the debt-to-GDP ratio has reached approximately 100 per cent, a level reminiscent of the unprecedented levels observed during World War II. As the US faces these economic challenges, it becomes imperative to delve deeper into the implications of the mounting debt crisis and explore potential strategies for mitigating the risks associated with such an unprecedented fiscal burden.
