US Is The Most Indebted Country


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According to the International Monetary Fund’s or IMF measure of central government debt, the U.S. federal government is among the most indebted governments in the world.

As of 2021, federal debt reached 115 percent of our gross domestic product or GDP. That puts us on the 16th place out of 164 countries. Japan tops the ranking with central government debt of, followed by Greece, Sudan, Eritrea, and Singapore.

Considering we are the world’s reserve currency and not long ago, the U.S. was among the least indebted countries. In fact, just a little over 20 years ago, U.S. federal debt was 42 percent of GDP, lower than debt levels found in 100 other countries.

That data you see on your screens right shows the U.S. debt surged upward in two stages over the last 20 years. The first after the financial crisis in 2008 and then after the COVID-19 pandemic that began in 2020.

Gross federal debt climbed to a record high of 128 percent of GDP in 2020. The recent downtick was primarily due to a surge in inflation as well as real economic growth coming out of the pandemic, factors that temporarily reduced debt burdens in many countries.

Now that the debt ceiling has been taken out completely until 2024, we can expect more debt to come. Many are not discounting the possibility that our debt will go up by 50%. And this is if there are no economic disaster comes our way again.

That is unlikely though.

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