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US Debt To Hit $40 Trillion By End Of Next Year
US debt is set to spiral by another $20 trillion in a decade, and there's little hope that either Republicans or Democrats will bring it under control.
Projections show that in less than two years, the total US debt will have ballooned a further 18% from its current level of $34 trillion to an incredible $40 trillion.
Figures from Statista's research department suggest that the total could reach $52 trillion by the end of 2033, but those statistics were published almost a year ago, and are already significantly behind the reality of America's debt accumulation.
An Apolitical Problem?
While the Debt is a perennial issue for American politicians, and Congress has come close to shutdown over the debt ceiling on multiple occasions, records show that all previous governments have increased the debt dramatically, regardless of whether they are Republican or Democrat.
Firing Up The Money Printer
The rising debt raises questions about the value of the dollar. Debt is increased by selling government bonds. When there are not enough buyers for these, either due to lack of confidence or because such large volumes are required, the Federal Reserve typically steps in and prints more money to buy them (aka Quantitative Easing).
This increases the money supply which, as we have seen in recent years, is ultimately inflationary. Interest payments on existing debt then needs to be paid, which may involve more debt issuance and money printing: A vicious cycle.
At present, the US has the highest debt rating of any country. Still, the fact that interest payments alone cost over $1 trillion per year, more than almost any other category of public spending, is a growing cause for concern among politicians and other critics.
Paying Off Your Government's Debt
In Bitcoin circles, this reality is also driving a new narrative. Jack Mallers, CEO of Swan, points out that constant debt growth and inflation rob regular citizens of their income. Inflation-proof assets are a means to opt out of this endless cycle of debt and money printing.
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