The United States is grappling with a staggering national debt of $34.5 trillion, which is triple that of the eurozone. This debt burden is expected to continue growing, reaching 134% of GDP by 2029. Rising deficits and interest payments are raising concerns about a potential fiscal crisis. The situation is particularly concerning as the government’s annual deficit is still high despite strong economic growth, and interest expenses are projected to increase significantly in the coming years.
* Global economy is experiencing growth, indicating the need for a healthy commodities allocation in portfolios.
* A potential fiscal crisis is anticipated in 2025, making gold and bitcoin essential hedges against US government spending concerns.
* China’s economic expansion, supported by manufacturing growth, contributes to global growth.
* The US debt-to-GDP ratio is projected to reach record highs, with the budget deficit being historically large even during full employment.
* Credit default swaps and outperforming emerging market debt suggest market anticipation of the 2025 fiscal crunch.
