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Will the U.S. Be Able to Pay its $34 Trillion Debt?

Jan 16, 2024

I'm Coy Wells for U.S. Money Reserve. According to the data released by the Treasury Department on January 2nd, 2024, the size of the U.S. national debt surpassed $34 trillion for the first time ever at the end of 2023. The national debt continues to rapidly expand, having surpassed $33 trillion in September 2023. This means it grew by $1 trillion in a matter of months.

The national debt has been growing at a rapid pace for decades. According to Fox business, just four decades ago, the size of the National debt was less than $1 trillion. Projections from the nonpartisan Congressional Budget Office, CBO, shows that the national debt will double in size over the next 30 years.

The size of the national debt relative to the size of the economy is also growing. The CBO estimates that the national debt was equivalent to 97% of U.S. gross domestic product, or GDP, at the end of 2022. Currently, the organization predicts the national debt will equal 181% of our nation's GDP by the end of 2053.

In addition to the debt size, the cost of paying the national debt is growing rapidly. Rising interest rates are projected by financial services company Capital Group to make debt repayment cost more for the government by 2025 than both defense appropriations and social security payments.

With historic levels of debt come historic levels of default risk, which in turn could mean increased economic volatility. A default by the U.S. government could have widespread effects on U.S. stocks and bonds, and the relative power of the dollar.

For this reason, consumers may be looking for ways to help protect their hard earned savings. Precious metals like physical gold and silver have long been considered safe haven assets in times of economic uncertainty and volatility. Untethered to paper assets and not directly tied to the U.S. economy, these assets can be an important hedge for consumers worried about soaring U.S. debt.

Gold also has a strong history of growth, allowing owners to reap the benefits of rising prices while also protecting their wealth for future generations. To learn more about the benefits of owning physical gold at home or as part of a gold backed IRA, and to receive your free gold information kit, call U.S. Money Reserve and speak to one of our dedicated account executives today.

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