The soaring Debt to GDP ratio at 124%, driven by the government’s extensive money printing, poses a heightened risk of long-term economic consequences and increased inflationary pressures. Despite a slight dip from the previous peak in 2020, the current ratio remains a cause for concern.
‼️DEBT TO GDP: 🚀
– Current Debt to GDP ratio: 124%
– Previous peak in 2020: 133%
– Government’s excessive money printing surpasses tax revenues
– Heightened risk of long-term economic consequences and increased inflationary pressures. pic.twitter.com/xYUJeJ6xty— The Coastal Journal (@1CoastalJournal) November 19, 2023
A high debt-to-GDP ratio can impede economic growth. It puts a strain on government resources, leading to less effective public spending and potentially hindering overall economic performance.
— The Coastal Journal (@1CoastalJournal) November 19, 2023
The U.S. is Reaching an Inflection Point Where Debt Quickly Gets Even Worse: Ray Dalio
Ray Dalio, founder of Bridgewater Associates, warns that the soaring U.S. government debt, now at $33.7 trillion, is nearing a critical point. The rapid 45% increase in debt since early 2020 and a $1.7 trillion deficit last year have escalated the financial burden, with $659 billion spent on debt interest in fiscal 2023. Dalio highlights the danger of this trend, noting that the U.S. is reaching an inflection point where continued spending and borrowing will exacerbate existing political and social issues. Additionally, he points out a supply-demand problem in U.S. Treasurys, with foreign buyers, who constitute 40% of the market, reducing their holdings significantly.
