The bulging US debt situation is worsening as the nation battles overflowing debt numbers on all frontiers. The United States is currently busy handling a bleeding debt crisis on its hands that, if left uncontrolled, has the potential to paralyze the nation from all sides.
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The United States’ Debt Situation Is Overflowing: What’s Happening?
A recent post by the notable Kobeissi Letter brought forth a compelling insight to ponder. The platform uploaded the recent list of segmental debt metrics that the US is currently bursting with. For instance, the platform outlined that the US is currently battling internal debt issues associated with diverse sectors, including households and mortgages.
Per KL, the US currently has a record $179 trillion in household debt. The aforementioned stats are followed by a record $12.6 trillion in mortgages, as well as $1.6 trillion in auto loans. Such exorbitant statistics are indicative of how Americans have lately been having a hard time managing finances, which is stripping away their financial freedom at a rapid pace.
Similarly, the platform further shared how US citizens are combating $1.2 trillion in credit card debt, followed by another $1.6 trillion in debt categorized as student loans. Such massive price statistics are signaling the level of inflation that has gripped the US as of late. The rising prices and levels have rendered basic amenities unaffordable, taking a toll on the physical and mental health of US citizens.
In addition to this, the US national debt has also hit a record $35.96 trillion, adding more fuel to the fire.
“The U.S. Now Has: 1. Record $17.9 trillion in household debt. 2. Record $12.6 trillion in mortgages. 3. Record $1.6 trillion in auto loans. 4. Near-record $1.6 trillion in student loans. 5. Record $1.2 trillion in credit card debt. Total household debt is now up 56% over the last 10 years, and total credit card debt is up 53% since 2020. Meanwhile, delinquency rates on credit cards and auto loans are now at 2008 levels. Consumers are “fighting” inflation with debt. This can’t end well.”
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Can the Musk-Trump Duo Help US Recover From This Mess?
Trump’s crowning as the 47th US president is bulging with a multitude of new expectations. Trump naming Musk to lead the DOGE department is also a crucial juncture that comes with another set of expectations from US citizens.
Musk, in one of his X posts, had outlined a need for a complete overhaul to bring American glory back from its dormant state. The Tesla chief had earlier responded to a post on X that holistically talked about the changes that the nation may undergo under Trump’s leadership. The post discussed that the US may first undergo a complete transformation, one that may carry stringent measures first to alter its economic course with a pure intention to steer the the nation in the right direction. Musk acknowledged the aforementioned post, stating that he agreed with the points mentioned in the post.
Such overhauls may also include measures to curb rising debt levels by introducing policies that may strengthen the US economy.
“If Trump succeeds in forcing through mass deportations, Combined with Elon hacking away at the government, firing people, and reducing the deficit. There will be an initial severe overreaction in the economy. This economy propped up with debt (generating asset bubbles) and artificially suppressed wages (as a result of illegal immigration). Markets will tumble. But when the storm passes and everyone realizes we are on sounder footing, There will be a rapid recovery to a healthier, sustainable economy. History could be made in the coming two years.
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