Apparently, the US national debt has decided to run its own marathon. It is projected to reach a staggering figure of over 143.4% of GDP in just a few years. The forecast from the International Monetary Fund states that by 2030, the US will outstrip even countries like Italy and Greece, which are notorious for their long-standing debt-to-GDP ratios.
Over the next six years, the US is expected to add approximately 20 percentage points to its debt load, making its creditworthiness arguably one of the most fragile in the world. Meanwhile, heavily indebted EU countries like Italy and Greece can “boast” about their old debts of 135% and 152%, respectively. Analysts warn that the US debt will surpass them in the not-too-distant future.
Besides, analysts estimate that the annual US budget deficit will remain above 7% of GDP — a precursor to a future crisis. For now, it seems the country is preparing to become a record-holder in debt burden. Interestingly, despite all these grim forecasts, the US dollar appears to play its own games.
But the most amusing part is that US authorities already have plans to convert their bonds and alter the terms of their century-long debts to lower interest rates. Indeed, who does not love debt that lasts for centuries?
