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Will the National Debt Kill the US Economy?

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Will the National Debt Kill the US Economy?

by Peter Zeihan on September 26, 2024

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Okay, now that all the housekeeping is out of the way, let’s move on to today’s video…

Will the National Debt Kill the US Economy?

The US national debt is so high that it has exceeded 100% of GDP. We’re talking over $35 trillion. Nice little chunk of change there. So, what led us to this point and how do we move forward?

There are several things that have helped the US rack up that debt: Baby Boomers retiring and collecting from the system instead of paying into it, spending on wars, and recent administrations carrying larger and larger budgets…just to mention a few.

While the US debt is concerning, a healthy dose of perspective might help back you off that ledge. Europe is facing a severe demographic problem. China’s debt stems largely from corporations and is still massive. Japan has a debt-to-GDP ratio of a few hundred times GDP, and they’re doing…all right.

So yeah, the US has a problem, but we’re not quite in crisis mode. Give it about 30 years before you really start to worry (heck, maybe someone will even come along and fix the problem before we get there). In the meantime, the US could see massive capital flight from the collapse of other countries, and that would buy us some more time to figure out our issues.

Please click below to watch today’s video

YouTube Video Link: https://youtu.be/SZ3ij6fVJmk

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