The U.S. is on track for an economic “heart attack,” if lawmakers are unable to pull the country out of its “death spiral of debt,” according to the founder of the world’s largest hedge fund while speaking on a recent podcast.
Why It Matters
The U.S. national debt currently stands at $36.2 trillion, according to the Treasury Department. The U.S. currently runs at a roughly 123 percent debt to gross domestic product (GDP) ratio, reflecting an inability to pare down what it owes.
Mary Altaffer/AP Photo
What To Know
Excessive borrowing can drive up interest rates, potentially stagnating economic growth, while also limiting the government’s ability to respond to economic crises and increasing the risk of inflation if the government resorts to printing money to manage its debt.
If debt and interest payments tighten…
