The US government is now paying an average of $3 billion per day in interest on the national debt, a significant increase from the beginning of 2022. This alarming trend is projected to result in a staggering $1.157 trillion in interest payments for the entire fiscal year 2024.
Following the debate between Donald Trump and Kamala Harris, Elon Musk, CEO of Tesla and SpaceX, expressed his dissatisfaction with the hosts and voiced concerns about the lack of discussion on the national debt crisis. He also questioned Harris’s ability to enact change and declared that reaching Mars would be impossible if she wins the election.
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.
The article explores the complex relationship between monetary policy, fiscal deficits, and the overall health of the economy. It highlights the potential dangers of excessive fiscal deficits and argues that a balanced budget is crucial for long-term economic stability. The article also discusses the role of gold and other risk-off assets in times of economic uncertainty.
