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The US debt could eventually “break” markets if it keeps growing at this pace, Joao Gomes warned.
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The Wharton finance professor said he worried the debt-to-GDP ratio would double in the next 20 years.
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The US may no longer be able to rely on countries like China and Japan to buy up Treasurys, he added.
The US’s soaring debt threatens to break something in the market if the government doesn’t pull back its pace of spending soon, according to a Wharton finance professor.
Speaking to CNBC on Thursday, Wharton’s Joao Gomes warned of future trouble stemming from the US’s $34 trillion debt load, which experts have been watching grow at an alarming clip. Given the government’s current pace of spending, the federal debt is growing by around $1 trillion every 100 days, Bank of America analysts said this month.
Public debt accounted for 121% of GDP at the end of 2023, according to data from the US Office of…
