The United States National Debt Hits 33 Trillion Dollars for the first time. This is the highest national debt a country has ever had in human history. A staggering sum never fathomed or contemplated.
Of course this could be perfectly fine if the entity, in this case a country, has a strong economy and GDP — how much revenue it collectively produces per year — that could easily pay the debt off at any time. This is expressed as Debt to GDP. It’s a simple ratio that measures an entity’s debt compared to how much it produces in revenue per year if it were to start paying that debt off now. The smaller the number, the better. The larger the number the more difficult it will be for that entity to pay off this debt.
Traditionally when a country reaches a debt to GDP ratio of 50%, lenders start to take notice and become concerned. Greece and Italy are prime examples because they are consistently in the news for flying much higher than 50% and getting into trouble with the EU and their lenders. Germany being the economic powerhouse of the EU — just as the High Command of the Third Reich planned it once World War II started to turn toward an Allied Powers victory (study this; the information is out there — they meticulously planned out how to create a “Fourth Reich” thinly disguised as a unified Europe controlled by Germany. Of course they never foresaw the behemoth the United States would become post a nuclear world… ) — is always left to pick up the debt payments of Italy and Greece and any other European country who falls behind on their debt payments and agreements.
For some reason Japan is allowed to run a debt to GDP ratio of some 250% and nobody seems to mind. [research].
The United States’ debt to GDP is now 129%. The highest it’s ever been is 134% during the Covid Pandemic Recession. This corresponds with other periods when the federal government ran large budget deficits: the Reagan-Bush years of the 1980s and early 1990s; the G. W. Bush years during his “War On Terror” and the 2008 financial crisis and the subsequent Great Recession; and the pandemic-caused recession of 2020 during the Trump years when federal debt spiked to an all-time high of the aforementioned 134.8% of GDP.
In terms of the current fiscal year, the United States is as always addicted to spending, with no real feasible plan in place to bring down the debt.
“A Treasury Department report last week showed that the deficit — the gap between what the United States spends and what it collects through taxes and other revenue — was $1.5 trillion for the first 11 months of the fiscal year, a 61 percent increase from the same period a year ago.”