Fueled by the pandemic and years of fiscal splurging, the national debt of the United States blew past a record-shattering $31 trillion in October, and the country is barreling toward a future economic reckoning.
Economists have long debated the precise repercussions of skyrocketing debt, with some downplaying fears of a cataclysmic crisis and most others quibbling about whether its ramifications will take the shape of a slow-moving economic demise or eventually reach a breaking point.
“This is totally uncharted territory. These are debt levels that have not been seen before. This is going to exceed even Japan’s debt, which is the largest debt as a share of the economy in the entire industrialized world,” Brian Riedl, a senior fellow at the Manhattan Institute, told the Washington Examiner.
Already, the U.S. debt-to-GDP ratio has ballooned to the highest levels since the end of World War II. The latest annual deficit for fiscal 2022 was $1.38 trillion, per the Treasury. As trillion-dollar annual deficits become the norm in Washington, the U.S. is already hovering around a 120% debt-to-GDP ratio, all while the population begins to age rapidly.
Here is a look at some of the ramifications economists believe the U.S. could face due to the spiraling national debt.
Default
Although economists generally see defaulting on the debt as unlikely due to the U.S. control of the dollar and its ability to borrow from its own currency, the country could simply stop meeting its debt obligations at some point in the future if the debt becomes out of control.
In that scenario, investors could get spooked from injecting capital into U.S. businesses, and interest rates would very likely soar on the debt. This would mean inflation and a recession or depression.
WRITE OFF the damn debt to CHINA (our ENEMY) for killing Millions of Americans with their COVID-19 !!!!!
SOLVED !!! Debt PAID in FULL !!!!!!!
if it were paid then democrats would be spending even more money !
Alfred E. Neuman, Bribem’s chief economic adviser, defacto Secy of Treasury and Federal Reserve shadow leader was quoted saying, “What, me worry?” He continued by adding that as long as supplies of ink and currency paper were robust and a combo of wind and solar power kept the presses running there was no end to what Bribem, Schumer/McConnell twins and Pelousy could spend.
Closer to truth than fiction!
It is NEVER PAID DOWN so what the hell is going on ???? It ONLY keeps going UP UP UP !!!!!!!!
America is BANKRUPT !!!!! When you owe that much money you are PAST Bankrupt many many TIMES !!!!!!!!
it should be ILLEGAL to OWE an ENEMY ANYTHING or do business with them Making THEM RICH !!!!!!!!!!!
Same as Paying HITLER & doing business with NAZI Germany !!!! NO difference