US Debt to GDP issue, what is next?

The last 100 years USA debt to GDP has exploded on the back of wars and crisis.


The first chart shows how and when this came to be.


Chart 1 - US Debt to GDP%.

The US Debt to GDP% ratio can be fixed in a few ways:

1) Revalue selective assets on the USA balance sheet higher: 8,000 tonnes of gold is currently valued at $34 USD an once. This could be revalued to $10,000 USD and once. 

2) Massive production miracle to boost GDP from some new technology.

3) Cut spending and pay back the debt. Very hard politically and a world wise depression may result.

4) Inflate prices higher while debt stays the same (just like Israel did after several wars). Most likely!



Chart 2 - How Israel fixed its debt problem. Israel inflated the debt away.

Short Answer: Higher inflation and suppressed interest rates are coming to the USA very soon, to simply deflate the debt away. 

Currently USA debt to GDP% is around 122%. This can still go to +150% before Congress deals with the debt. The may be a election issue in 2028, as the interest expense costs becomes too much to bear.





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