#USNationalDebt
#MyTradingStyle The US national debt is a pressing concern, currently standing at a staggering $35 trillion to $36.4 trillion, with the latter figure broken down into $29 trillion in debt held by the public and $7.4 trillion in intragovernmental holdings. To put this number into perspective, the US debt-to-GDP ratio is around 123%, indicating that the country owes more than its entire annual economic output ¹ ².
*Key Components of the US National Debt:*
- *Debt Held by the Public*: Includes Treasury securities and bonds owned by individuals, corporations, state and local governments, and foreign governments.
- *Intragovernmental Debt*: Represents debt owed to government programs like Social Security.
*Recent Trends:*
- The national debt has been growing steadily, fueled by government spending, tax cuts, and historically low interest rates.
- The Congressional Budget Office (CBO) predicts that federal government debt will continue to outpace the nation's economic growth.
- In 2024, the public debt reached $35.251 trillion, accounting for approximately 120.79% of the country's GDP ¹ ³.
*Impact and Consequences:*
- The growing national debt has far-reaching consequences, including increased market dynamics, investment returns, and portfolio strategies.
- A high debt-to-GDP ratio can lead to decreased investor confidence, potentially affecting the value of the US dollar ¹.