The global debt clock is spinning, reaching a record-high of $307 trillion this week. What does this mean?
The amount of debt grew by around eight to ten trillion in just the first quarter of 2023 alone. It was recently reported that “The majority of low-income nations are on the cusp of a debt crisis, sparking fears of global contagion.”
The global debt virus has infected the international economic system, and the world is teetering on the edge of bankruptcy, especially in many of these low-income nations. US debt just surpassed $33 trillion this week. Last month, Credit card debt, for the first time in American history, eclipsed $1 trillion.
The US national debt is projected to exceed 100% of gross domestic product in the next two years. In around six years, the national debt is said to exceed its all-time high of 106% of the gross domestic product, which occurred in 1946, the year immediately following World War II. We know why we had so much debt then, but now it’s simply a result of runaway spending that politicians are not able to curtail.
What’s happening now is the convergence of rising debt and rising interest rates, which is a deadly cocktail. 60% of American families live paycheck to paycheck. Think about that—any kind of financial crisis can take six out of ten families under.