The Looming Debt Crisis

This chapter explores the alarming state of the U.S. national debt, which has reached approximately $36 trillion, surpassing the annual GDP by 1.2 times. The discussion highlights the dire implications of potential default, likening it to the catastrophic fallout of the 2008 financial crisis, while also addressing the responsibilities of policymakers and the risks associated with low interest rates. Additionally, it emphasizes the complex relationship between foreign ownership of U.S. debt and the global perception of America's financial reliability.