❗️ A Million Simulations — One Verdict for the U.S. Economy: Debt Danger Ahead

👥 Analysts at Bloomberg Economics "ran a million forecast scenarios" regarding the prospects of U.S. debt. In 88% of cases, the results show that the debt-to-GDP ratio is on an unsustainable path, defined as increasing over the next decade.

🔍 In its latest forecasts, the U.S. Congressional Budget Office warns that U.S. federal government debt will rise from 97% of GDP last year to 116% by 2034 — more than during World War II.

💬 Earlier this year, Federal Reserve Chairman Jerome Powell stated that it might be "time... or long past time" for policymakers to start addressing the issue of an "unsustainable" borrowing path.

😐 Of course, we do not believe in a "collapse of the dollar" (certainly not in the coming years), but the situation with U.S. public debt is becoming increasingly serious. The question is only how it will be resolved.

#USA #Fed #JeromePowell #Congress