The United States national debt officially crossed $34 trillion on January 4. A staggering metric to encounter, the US debt is increasing by $1 trillion every 100 days and is showing no signs of resistance or stopping.
According to data procured from the US Department of Treasury, the US national debt crossed $33 trillion on September 5th. The debt, which roughly means the money borrowed to run operational expenses by the federal government, has breached a critical threshold. This development may further entail putting stress on major US economic indicators, leading the economy down the wrong path.
Also Read: US Debt Officially Climbs Above $100,000 Per American
The United States Government Interest Expense is Growing By The Day
Game of Trades, a notable researcher on X, posted an interesting insight on social media. The handle uploaded a new graph showing the steady rise in the Government Interest Expense (GIE). GIE is a chart showing the amount of interest the government pays on its overall outstanding debt.
The chart signals that the US is bound to pay an additional $1 trillion on its outstanding debt, hinting at an advancing economic crisis.
The rising numbers, which show no signs of decline, are causing a flurry of reactions among its citizens and investors. Several analysts on X were quick to comment on this development, adding how the ballooning debt metrics could jeopardize the US’s economic prestige.
Despite encountering staggering debt metrics, half of the American states are still pinned under serious economic contraction.
An economic contraction simply refers to a decrease in economic activity based on critical markers such as GDP, industrial production, and employment. The grappling crisis in such states is furthering US national debt numbers, triggering overall economic mayhem in the region.
USD Is Weakening as Attacks On Currency Intensify
USD is currently battling rising calls for de-dollarization as attacks on its prestige echo louder than before. The BRICS alliance and its potential to develop a new currency spell terror for the USD and its decades-long supremacy.
Also Read: BRICS: Bank of America Issues Warning of a US Dollar Collapse
The Ray Dalio Chart, making the rounds on X, has encapsulated the essence of the rising crisis metrics in the US. Per the chart, the US is currently on stage 15. This particular stage entails a threshold where a nation encounters internal conflict spurred by economic meltdowns and crises. The next stage brings about a loss of the reserve currency, which, per the analysis, has already started to take shape.