Disclosure:
This website contains affiliate links.
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I only promote companies that I have personally used or researched and believe will add value to our readers.
This website contains affiliate links.
When you click on these links and make a purchase, I may receive a commission at no additional cost to you.
I only promote companies that I have personally used or researched and believe will add value to our readers.
Disclosure: The content I provide here isn’t financial advice and cannot be taken as such. Please speak to your financial advisor before making any investment decision.
Also, note that every investment comes with its own risks and drawbacks. Lastly, I would like to remind you that past results cannot guarantee future returns.
Also, note that every investment comes with its own risks and drawbacks. Lastly, I would like to remind you that past results cannot guarantee future returns.
US Debt to GPD Is
Out Of Balance
GPD Is Out OF Control
As the above chart shows, the US Debt to GPD is 129%, the HIGHEST IT HAS EVER BEEN. The previous high was 124.73% recorded in 2020, the first year of the Biden Administration. It did drop to 110.39% (in 2022), but has been on the rise ever since.
The LAST time the debt to GPD ratio was over 100% was right after World War II when it topped 119%. It slowly went down to a low of 31% (in 1981 with President Reagan's Tax Cuts).
This ratio is important because investors worry about default when it's greater than 77%. That's the tipping point, according to the World Bank.
FYI: The top 4 nations with the highest Debt to GPD (Source) are:
Japan……….….264%
Venezuela……..241%
Sudan……….….186%
Greece……….…173%
The one thing to note about all these countries is that their economies are in the tank, particularly Venezuela and Greece, but with Japan and Sudan's economies also in a bad way.
The above countries Debt to GPS are so far out of sync that it will take years, or even decades before their economies are able to recover.
The Debt-to-GDP ratio gives investors, economists and leaders a tool for gauging the ability of a countries ability to pay off it debt(s).
A ratio of 100% indicates just enough output to pay debts, while a lower ratio means enough economic output to make debt payments.
A ratio of OVER 100% means that a country isn't producing enough to pay off its debt.
With the US Debt to GPD at $129% (and rising), it may be dangerously close to not being able to pay their obligations.
The question to ask is: What happens if there is a World Wide Recession, Depression, Epidemic, or, God forbid, a world wide war?
How much will green paper be worth? Or bitcoins. Gold has been a proven safe haven in economic termoil.
Note From The Author Of This Website:
My research on the National Debt, GPD and The Trade Deficit has been a real eye opener. There are those individuals who claim that the cost of the national debt is low and is NOT a threat to the US Economy or Dollar. I think those people have an agenda that is not in the interest of the average American.
I trust Elon Musk's opinion far more than I do those people. The debt is increasing at such a pace that in another 10 years the interest payment could consume 75% of taxable income.
Beyond Scary.
My research on the National Debt, GPD and The Trade Deficit has been a real eye opener. There are those individuals who claim that the cost of the national debt is low and is NOT a threat to the US Economy or Dollar. I think those people have an agenda that is not in the interest of the average American.
I trust Elon Musk's opinion far more than I do those people. The debt is increasing at such a pace that in another 10 years the interest payment could consume 75% of taxable income.
Beyond Scary.
