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- 1 The average American household has $244,000 in debt.
- 2 It is more than the combined GDP of China, Japan, Germany, and the United Kingdom.
- 3 Several experts predict that the issue will worsen over the next ten years, with the US’s debt likely to top $50 Trillion.
The US government’s debt has increased by over half a Trillion dollars in the past two weeks, reaching $32.03 Trillion as of June 15th. Ray Dalio, the founder of Bridgewater Associates, has declared the US has entered into a “very classic late big-cycle debt crisis.”
US Debt to Worsen Over the Next 10 Years
In the past two weeks alone, the US government’s debt has increased by more than half a trillion dollars.
According to FiscalData’s most recent figures, as of June 15th, the US national debt stood at $32.03 Trillion, an increase of $571 Billion from the figure of $31.46 Trillion that was reported on June 1st.
The average American household has $244,000 in debt, which is more than the combined GDP of China, Japan, Germany, and the United Kingdom.
Even if every American household contributed $1,000 a month to pay off the debt, it would still take 20 years to do so at the present interest rates. The US is already paying over $2 Billion a day in interest payments.
While analysts and average Americans have paid more attention to the US debt situation, the majority of specialists still predict that the issue will worsen during the following ten years.
According to a recent forecast by Nigel Green, CEO of the international financial advice firm deVere Group, the United States’ debt is much more likely to top $50 trillion than it is to decrease to more manageable levels.
What’s the drawback, specifically for Americans? Well, the debt is only getting worse and it is a whopping $31 Trillion at the moment. To repay and amend their tax debt, it takes 8% to payback-adjust the debt of their taxes.
Some may respond, “Well, it’s only that percentage,” as well. Yes, one can contest that. However, if it keeps rising and there is a downturn at some point, it goes without saying that America will find it difficult to pay its debts.
Considering that it is currently $31 Trillion, which is more plausible, $50 Trillion or $25 (Trillion)?
In the end, it’s more likely to reach $50 Trillion than $25 Trillion, which is the reality. Although it’s not yet a bust, America will eventually have to pay back its debt. There is a lot of debt that must be purchased. It must have an interest rate that is high enough.
If the debt continues to rise in the next 5 to 10 years, it would eventually reach a place where that balancing act would be very challenging.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
