VNQ - National Debt Drama Deepens: Where To Stash Your Cash When The Fiscal Sky Falls | Benzinga
U.S. government debt is reaching unsustainable levels, and the latest analysis points to an even more concerning future.
A new economic model developed by Bloomberg Economics predicts that in 88% of scenarios, U.S. debt as a percentage of GDP will rise in the coming 10 years.
In a Monday letter to investors, Citadel founder Ken Griffin referred to mounting national debt as a significant issue, saying that “we must stop borrowing at the expense of future generations.”
According to a recent survey, about 85% of Americans worry that current debt levels could have a negative impact in their future.
Official data from the St. Louis Fed shows that debt equaled 121% of the country’s GDP in the last quarter of 2023. The rate has floated around 120% in past years, after peaking at 132% during the COVID pandemic. These levels are above a previous historical record set following World War II.
In late May 2023, the government averted a default by raising the debt limit even higher in an emergency measure. While lawmakers on both sides of the aisle agree that government borrowing has reached unhealthy levels, a lack of agreement as to how to solve the problem keeps Congress from finding a satisfactory solution.
Earlier this year Fed Chair Jerome Powell said that the current rate of debt acquisition means we're ??”borrowing from future generations," and called for elected officials to have an adult conversation "about getting the federal government back on a sustainable fiscal ...