The US debt is currently at $31.8 trillion and rising fast
The US paid an interest of $475 billion in 2022 on its debt — more than the total revenue of Apple, the world’s biggest company by market cap
One of every $12 spent by the US government goes into paying interest on loans
The interest on US public debt is expected to cross $525 billion in 2024
When a bulk of government revenue is spent on servicing debt, other important sectors suffer
Currently, the US is about to hit the maximum money that is allowed to borrow by its constitution
It has hit the ceiling multiple times in the past & each time, the limit has been raised. 78 times since 1960.
Earlier in Dec 2022, the US debt ceiling was raised by $2.5 trillion but that money is running out fast.
If the debt ceiling is not raised again, the US could run out of money to pay its bills by August, according to Moody’s
While most experts believe, despite the intense fight between Biden and his rivals, the risk of a US default is low
However, the political brinkmanship will affect the confidence in the US economy, which has already made the cost of its loans the highest they’ve ever been.