US Government Debt will increase by $22 trillion or by 85% over the next 10 years to $48 trillion, according to a recent report from the Congressional Budget Office. That would take the ratio of Government Debt to GDP from 97% at the end of 2023 to 116% at the end of 2034.
These projections were met with astonishment and alarm in the press and across social media.
Everyone wants to know how it will be possible for the government to finance so much new debt, or, put differently, who will buy all this government debt.
The latest Macro Watch video provides the answers.
It shows that not only will the government be able to borrow on this scale, but that it will be able to do so easily, thanks to:
- The growing pool of trapped Dollar savings abroad,
- Additional money creation by the Fed,
- The growth in Household Savings,
- Continued rapid Credit Creation, and
- Increasing Wealth over the next decade.
These are the sources that have funded the government’s debt thus far during this century. They will continue to fund it during the decade ahead – and for many decades beyond that.
If you are not convinced, watch this video now before you make investment decisions you will come to regret.
Macro Watch subscribers can log in and watch it now for all the details.
The video is 19 minutes long and contains 44 slides that can be downloaded.
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