USA National Debt Online!

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Debt per every citizen ≈ $108 000

Public debt to GDP ratio ≈ 121%

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Every second debt growth on ≈ $48 100

Why USA Must Confront Its Rising National Debt?

With interest payments on federal debt surpassing $1 trillion annually, the growing cost of servicing USA debt is placing increasing pressure on the federal budget. These payments reduce fiscal space for key investments like infrastructure, education, and defense, while limiting the government's ability to respond to future economic shocks. Persistent deficits also risk eroding investor confidence.

Although USA treasuries remain a global safe haven, recent credit downgrades highlight concerns about long-term fiscal sustainability. If markets begin to demand higher yields, borrowing costs could rise across the economy, weighing on growth.

Beyond markets, high debt levels may dampen private investment by absorbing national savings and reduce USA geopolitical flexibility due to reliance on foreign creditors. A credible strategy to stabilize debt is essential to maintain economic resilience and long-term stability.

US Debt & M2 Money Supply over last 25 years

  • Debt
  • M2

All data is in trillions of US dollars.

What Is the M2 Money Supply?

The M2 money supply is a key economic indicator that measures the total amount of liquid money available in the U.S. financial system. It includes cash, checking deposits, savings accounts, and short-term time deposits, making it a broader measure than M1.

Why Is M2 Important for US?

M2 reflects the monetary policy stance of central banks, especially the Federal Reserve, and plays a crucial role in influencing inflation, interest rates, and overall economic growth.

During expansionary periods, such as the 2020-2021 pandemic response, the U.S. M2 money supply grew significantly. This surge in liquidity boosted consumer spending, investment activity, and financial asset prices.

In contrast, recent tightening cycles-characterized by higher interest rates and reduced central bank balance sheets-have slowed or reversed M2 growth, signaling lower liquidity and increasing the risk of disinflation or economic slowdown.

Why Investors and Policymakers Monitor M2?

Changes in the U.S. M2 money supply serve as a barometer of financial conditions. Policymakers, economists, and investors closely watch M2 trends to anticipate shifts in the economic cycle, assess recession risks, and inform monetary and investment strategies.

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