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U.S. National Debt Crisis Looms, Threatening Economic Stability

As interest payments soar, experts fear a repeat of the UK's financial turmoil, putting the economy at risk.

The US Treasury Department in Washington, DC, on May 8, 2023. - Treasury Secretary Janet Yellen said Monday that there is a "big gap" between the positions of US President Joe Biden and Republican leaders when it comes to a decision on raising the debt limit. (Photo by Mandel NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
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Overview

  • The U.S. government's soaring national debt is raising alarms about potential market chaos and economic pain, with interest payments expected to hit $1 trillion by 2026.
  • Experts warn of a possible UK-style market meltdown due to unchecked government spending and rising interest rates.
  • Investors have so far remained optimistic, pushing assets like stocks, gold, and bitcoin to record highs despite the looming debt crisis.
  • The Congressional Budget Office (CBO) predicts the debt-to-GDP ratio will rise significantly, reaching 166% by 2054, exacerbating economic and fiscal risks.
  • Concerns over the national debt have fueled interest in alternative assets like bitcoin and gold, which have rallied to new record highs amid global uncertainty.