The country that once dominated the global economy is now grappling with a severe debt crisis. The United States, with a GDP of $28 trillion, is burdened by a debt of $36 trillion. This disparity between the country’s income and debt is not only unusual but also alarming. The sheer magnitude of this debt, exceeding the combined GDP of China, Japan, India, the UK, and Germany, has raised concerns about its potential impact on the global economy. The International Monetary Fund (IMF) has cautioned the US about its debt crisis, and major credit rating agencies have sounded alarm bells, sparking fears of another global economic downturn similar to the 2008 ‘Great Recession’.
The US Treasury Secretary has acknowledged that the government is running out of time to address the issue, as tax revenues are insufficient to manage the massive debt burden. Experts describe the situation as a late-cycle debt…
