This study just showed the U.S. is teetering on disaster thanks to government debt

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The amount of debt America is skyrocketing thanks to reckless government spending that continues to climb out of control.

But Congress continues to pile on the spending for pet projects and social engineering.

Now this shocking new experiment has uncovered that the U.S. debt is on a very dangerous fast track toward complete disaster.

The U.S. is on an unsustainable path

Yes, you’re reading this right: Bloomberg conducted one million simulations on the U.S. debt outlook, and it discovered that 88% of those simulations show that the country’s borrowing is on an “unsustainable path.”

The results come after the Congressional Budget Office (CBO) found that the national debt will climb to a shocking $54 trillion in the next decade.

Much of the debt is due to an aging population and spikes in federal healthcare costs, but high-interest rates are also adding to the pain.

Payments will likely triple from around $475 billion in fiscal year 2022 to a maddening $1.4 trillion in 2032.

Even worse, the interest payments alone on the U.S. debt could reach $5.4 trillion by 2053.

That figure equals more than the U.S. spends on programs like Social Security, Medicare, Medicaid, and other mandatory discretionary spending programs combined.

Factoring in the current outlook on interest rates, the debt-to-GDP ratio is slated to rise to 123% in 2034, according to the Bloomberg report.

However, the sweeping tax law passed by former President Donald Trump in 2017 could be extended once certain provisions expire in 2025, making the 123% rise a rather conservative number.

In a separate “higher simulation,” the debt-to-GDP ratio could be even higher, at 133.9% in 2034 and 185% in 2050.

If these numbers come to fruition, it could threaten America’s position on the world stage. 

The national debt measures what the U.S. owes its creditors, and it just hit $34.5 trillion last week, according to the newest data from the Treasury Department.

Just four decades ago, the national debt was closer to around $907 billion – a jaw-dropping difference between then and now.

Out-of-control spending is to blame

The huge spike in the national debt is largely due to a spate of spending by Democrat lawmakers and President Biden.

According to the Committee for a Responsible Federal Budget (CRFB), in September 2022, Biden had already approved approximately $4.8 trillion in borrowing, which included $1.85 trillion for COVID relief measures called the American Rescue Plan and another $370 billion for the “infrastructure bill.”

That equates to around half of the $7.5 trillion that Donald Trump added to the national deficit when he was President, which is much more than the $2.5 trillion he approved around the same time during his tenure in office.

Analysts at Bloomberg said it “would take a lot to shake investor confidence in U.S. Treasury debt as the ultimate safe asset,” noting that debt is more sustainable if it’s judged by looking at inflation-adjusted interest expense.

Only 30% of the simulations found that using that metric (inflation-adjusted interest expense) would exceed the preferred debt-to-GDP ratio threshold of 2%.

Informed American will keep you up-to-date on any developments to this ongoing story.