Over half a trillion more dollars have been dumped into the US government’s debt spiral in the last two weeks alone.
According to the latest numbers from FiscalData, as of June 15th, the US national debt was $32.03 trillion, a $571 billion rise from June 1st’s recording of $31.46 trillion.
Total US debt is now larger than the total gross domestic product of China, Japan, Germany and the United Kingdom combined, and amounts to $244,000 per American household.
At current interest rates, the US is now paying over $2 billion a day in interest payments, and even if every American household contributed $1,000 a month to pay off the debt, it would still take 20 years to pay off.
While the US’ debt issue has received increased attention from both analysts and regular Americans, most experts still expect the problem to intensify over the next decade.
Nigel Green, CEO of global financial advisory firm deVere Group, recently predicted that America’s debt was much more likely to reach the $50 trillion level than to shrink to more reasonable numbers.
“What’s the negative for Americans in particular? Well, the debt is continuing to increase. In other words, right now we’re at $31 trillion. It takes 8% to payback-adjust their debt of the taxes.
And you would say, ‘Well it’s only that percentage.’ Well, you can argue that, yes. But if it continues to increase and there is a downturn at some stage, then of course America is going to struggle to pay its debts.
I ask myself the question: it’s $31 trillion right now, is it more likely to go to $50 trillion or $25 (trillion)?
Ultimately, (the) reality is it’s more likely to go to $50 trillion than it is to go up to $25 trillion. So we’ve got this continuing situation. It’s not a bust right now but (at) some stage in the future, America has to repay its debt.”
Ray Dalio, the creator of the largest hedge fund in the world, Bridgewater Associates, also recently declared the the US was entering what he referred to as a “very classic late big-cycle debt crisis.”
“There’s a lot of debt. It has to be bought. It has to have a high enough interest rate.
If we continue down this path, in terms of what’s likely over the next five and 10 years, then you would reach a point that that balancing act becomes very difficult.”
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