Debt to GDP in 2024–The Highest EVER Recorded

 I’m posting this article for a few reasons.  First off the warnings that our financial system will soon go over a cliff and change our lives like never imagined are increasing but voters have become so ignorant that they’ll never see the warnings.  Second, the article has the word EVER in it when it mentions that later this year our debt to GDP ratio will go to the highest EVER recorded.  With the election, wars everywhere and financial collapse looming…2024 might turn out to be quite the year!  

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The Congressional Budget Office said Wednesday that it expects the federal budget deficit to drop by $188 billion this fiscal year to $1.5 trillion, a short-lived dip as the annual shortfall is likely to rise over the next nine years.

Two major factors are behind the decline in the budget deficit this year, each of them one-off events that reflect the challenge for lawmakers in trying to close the growing gap between tax revenues and spending.

First, the current fiscal year started on an October weekend, which caused its payments to be booked in fiscal 2023 without offsetting revenues.

Second, tax revenues are expected to increase because of better returns on financial investments and the collection of taxes from last year that the government postponed because of natural disasters.

Over the next decade, the cumulative budget deficits will be 7% smaller than the nonpartisan CBO forecast last year. That’s mainly because of an agreement President Joe Biden signed last summer with Congressional Republicans that temporarily lifted the statutory debt ceiling in exchange for restrictions on government spending. But also, economic growth looks stronger than what was forecast and more people are working.

Still, deficits are a problem for lawmakers in the years to come because of the burden of servicing the total debt load, an aging population that pushes up the total cost of Social Security and Medicare and rising health care expenses.

The report also projects that the nation’s publicly held debt is set to increase from 99% of gross domestic product at the end of 2024 to 116% of GDP — the highest level ever recorded — by the end of 2034. Behind that increase are persistently large gaps between how much the government receives from taxes and how much it spends, a gap filled by borrowing from investors.

https://fortune.com/2024/02/08/how-big-national-debt-cbo-projection-jerome-powell-unsustainable/