Astonishingly, the US national debt skyrocketed to a staggering $31.5 trillion, witnessing an increase of over $8 trillion since the year 2020. Each household's federal debt allocation now stands at a hefty $240,000.
Debt/GDP ratio has now surpassed the post-World War 2 era, reaching an alarming 120%.
Dive into these pivotal facts about US national debt:
A disconcerting 120% of GDP is now represented by the US national debt, while the GDP itself amounted to $26.1 trillion in 2022's final quarter.
In the year 2020, an unparalleled 135% Debt/GDP ratio was recorded as the government authorized over $4 trillion in economic stimulus.
For context, the Debt/GDP ratio reached 114% in the aftermath of WW2.
The magnitude of US debt is immense: A substantial 21.8% of public debt ($6.9 trillion) is held by the federal government itself, encompassing Medicare, specialized funds, and retirement programs.
Social Security claims ownership of 9.2% of US debt.
Ironically, a program on the brink of insolvency holds approximately 10% of our debt.
Currently, the Federal Reserve System is the preeminent holder of US debt.
Following the colossal balance sheet expansion amidst the pandemic, the Fed now possesses roughly 20% of US debt.
In April 2022, the Fed's holdings peaked at over $6.25 trillion in US debt – an unprecedented event.
Simultaneously, managing US debt constitutes one of the government's most sizable expenditures.
This fiscal year, net interest payments on the debt are projected to reach $396 billion, accounting for 6.8% of all federal outlays.
Since 2010, interest expenses have accumulated to a whopping $3 trillion.
Though interest on US debt remains at record highs, rates persist at historic lows.
Seemingly good news, yet rates are climbing as the Fed endeavors to curb inflation.
At present, rates on US debt hover around 2%, a stark contrast to the 1990s rate of approximately 9%.
Interest expenses are escalating at a rapid pace.
By 2033, the US deficit is predicted to reach $3 trillion, with Debt/GDP skyrocketing to 200% by 2046.
The US Treasury ominously states, “the ascension in Debt/GDP signifies that the current fiscal policy is untenable.”
The debt crisis has arrived.