The US government managed to increase its debt mountain by $572 billion in less than two weeks. With that comes total government debt The United States is $32.03 trillion, and the US debt is greater than the GDP of China, Japan, Germany, and the United Kingdom.
The US government debt per household would be $244,000.
Huge interest costs
At current interest rates, the US government would spend about $2 billion a day on interest payments. If every American family had $1,000 a month religion It will take 20 years to complete it.
Although the US debt problem has long been the focus of attention of experts and residents of the United States, most analysts expect the problem to worsen over the next ten years.
Nigel Green, CEO of DeVere Global Group, recently predicted that the US debt mountain is likely to reach $50 trillion in the coming years.
This will also increase interest costs, especially if the Fed keeps interest rates at the current level. For this reason alone, interest rates must be lowered in order to continue to maintain the mountain of debt. Borrowing at 5 percent means the end of the United States. The population could not resist it.
Colossal problems
Investment legend Ray Dalio is also skeptical that the United States can solve this problem. According to the founder of the world’s largest hedge fund, Bridgewater Associates, America is going through a “classic grand cycle debt crisis.”
Dalio is an investor who cares a lot about history, not in the short term, but over periods of 80 to 100 years. According to him, America is currently in the last phase of its period of dominance and there is an opportunity to dramatically change the geopolitical playing field in the coming years.
“If we continue like this, looking at what is likely over the next five to 10 years, you will get to a point where it is difficult to keep things in balance,” Dalio said.
With this he talks about keeping the economy going while at the same time preventing (excessive) inflation. For Bitcoin, with its absolute scarcity of 21 million units, this seems like an ideal scenario.
