The Congressional Budget Office has warned that the US federal debt is expected to rise by 185% over the next 30 years. Total debt holdings could double the size of US GDP by 2051. No politician or spender cares about this debt because he does not intend to repay it. The Congressional Budget Office describes this as an optimistic forecast, given the previous estimate of debt rising to 202% of GDP by 2051. The truth of the matter is that no one can predict how much money politicians will continue to spend. Debt servicing will become more expensive over time, and is expected to reach 10% of GDP by 2051, 7.4% in 2042, and 5.1% in 2032.
Most of them don’t realize it The national debt has already reached enormous levels. Total US federal debt to GDP reached 100% by 2012. The ratio remained somewhat stagnant until capitalism became sick with the COVID virus in 2020, and the ratio of GDP to debt rose to 128.1%. The figure was 137.2% by December 2021 and has continued to increase.
China no longer wanted US debt and started selling its holdings. With other currencies declining compared to the dollar, US debt and all government debt in general, it no longer seems like a smart investment. We’ve reached a point where Congress can continue to pass bills and bribe voters with socialist promises of their last puppet because no one cares about America’s future. The United States will be the last to withdraw, but they expect the inevitable because countries, city-states, and governments are all temporary in the eyes of Father Time.