The US government's debt is back in the spotlight. Eye-popping statistics make the United States one of the most heavily indebted nations in the world. The federal debt has risen substantially in recent times and is now at an all-time high. However, new records seem to be not far off.
According to Bank of America analyst Michael Hartnett, the US national debt will rise by 5.2 billion dollars every single day for the next decade. Based on a report by the Congressional Budget Office as well as a number of direct and indirect factors, he projects that the debt will grow much faster than the economy.
Hartnett predicts that the debt held by the public will reach 118.9% of GDP by 2033, up from 98.2% this year. He says central banks are still in the business of bailing out the financial sector, with governments active in rescuing the real sector of the economy. “Ultimately policy destination is yield curve control across G7 once next recession provokes fiscal policy panic and ever high government default risk,” the analyst noted.
Notably, Treasury Department data shows that the total outstanding national debt stands at 32 trillion 39 billion 244 million dollars, the highest level ever recorded.
