US Debt - Warning

Some disturbing financial information is coming out of the United States.

US budget deficits are having a huge effect on US debt levels.

• The federal budget deficit, one source of increasing debt, is tracking at $1.7 trillion for 2024.

• Federal debt has been recently increasing by $1 trillion every 100 days.

• At the current pace, US federal debt will surpass $35 trillion by the end of April, and reach $40 trillion some time in 2025.

• Projections indicate that federal debt could reach $60 trillion by 2034.

• After hitting 1 trillion in late 2023, interest expense on US debt has risen to 1.1 trillion.

• If debt continues to grow and interest rates continue at the current level, annual interest costs could rise to 1.6 trillion by the end of the year.

• In 1970 the figure stood at $378 billion of public debt outstanding, which represented 34.9% of GDP.

• On the eve of the 2008 crisis, U.S. federal debt to GDP was around 64 percent, the same level as in 1995. This allowed some flexibility. As of the most recent quarter, the ratio of debt to GDP is now nearly double that, at 122 percent. On this measure, the United States is now among the top 10 most indebted countries in the world.