Unlike the US economy failing to gain needed pace, the US government debt has speeded up its growth and beaten all-time records. The world’s largest economy ran up the debt of over $19 trillion that is about 103% of the country’s GDP.
The US Federal government incurred such a debt in January. According to the Treasury, the debt held by the public was about $13.1 trillion in liabilities to companies and individuals, while the intragovernmental debt totaled about $5 trillion. Experts point out that the US debt has almost doubled during Barack Obama’s presidency. The debt has increased by $8 trillion over the last seven years. Only George Bush Jr. could compete with the current president as the debt growth rates during their terms are almost the same.
In November 2015, Obama signed a bill into law easing strict spending caps. Now the issue of debt limit is postponed until September 2017. The US debt is expected to reach $20 trillion by that time. Experts doubt that the US will face the same future as Greece with its debt crisis, but who knows – the US could have to tighten its belts one day.
