The US economy is inching towards an encapsulating death spiral. The United States government’s interest expense metrics are breaching new levels, crossing past the $1 trillion mark. This could eventually spell trouble for the nation as a whole, triggering a potential economic collapse.
The new surging levels of GIE are indicative of the interest that the US government has to pay on its mounting debt. If the metrics continue to rise, it could potentially trigger a complete market shutdown in the nation, spreading mayhem across leading financial and administrative verticals.
Also Read: Why Is The US Economy Heading Toward a Death Spiral?
US Government Interest Expense to Reach $1.7 Trillion by 2025
The mounting US debt metrics are showing no signs of a possible slowdown. Per a new analysis, the government interest expense, which is a significant marker documenting interest paid on debt, is poised to hit $1.7 trillion by 2025.
The metrics project an alarming signal, indicating that the rising US debt numbers are capable of jeopardizing the economy as a whole.
The US is currently under $34.5 trillion worth of debt. The level signals a hike when a nation has to spend more than it earns via diverse taxes and revenues. Per a report by GMI, If the pace continues, the $35 trillion debt mark will be reached by April 2024.
US Debt Spiral Triggers Gold, Bitcoin Rallies
The worsening US debt numbers are pushing investors to consider alternatives to secure their returns.
While Bitcoin at present is experiencing a decline, it doesn’t change the fact that investor sentiment towards BTC has greatly improved after the introduction of Bitcoin ETFs. Similarly, the recent price rally noted in the domain of gold has primarily been triggered by the global central bank gold purchase spree that helped gold prices skyrocket.
Also Read: US Economy Dubbed the Most Robust Among Competitors
Additionally, poor market returns and prevalent volatility in the space are also pivoting users to explore stable profits. These “returns” may arrive in the guise of Bitcoin and Gold, making them appear lucrative investments for now.