America's Debt Spiral (09Jun25)

KYHBKO
06-08

America’s Debt Spiral

Here is a collection of recent news about America’s debt situation":

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USA’s national debt approaches $37 trillion

The US car market BUBBLE is popping: The 60-day delinquency rate for subprime auto loans hit 5% for the first time, and exceeded Financial Crisis levels. Auto loan SERIOUS delinquencies 90+ days hit 5% in Q1 2025, reaching the Financial Crisis high - X user Global Markets Investor

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It took over 200 years for the U.S. debt to reach $12 trillion. $12 trillion is how much we added in 4 years between 2020 and 2024. - X user The Rabbit Hole

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In this thread I want to give you an idea just how insane the current government spending is and how far we drifted away from any sustainable fiscal spending. This is all based on reported numbers and there are no assumptions/forecasts. In the current fiscal year, the government already spent $4,159 billion. This is for the first 7 months and the fiscal year ends in September. The latest available data is as of April. The already accrued deficit amounts to over $1 trillion: $1,049 billion. You can see in the chart how net interest expense has become the #2 largest spending category at $579 billion (for 7 months) after social security ($907 billion) and even exceeded national defense ($536 billion), health ($555 billion), and Medicare ($550 billion). The deficit is 34% of total receipts! (1049/3110) In other words: the government spent 34% more than it took in. - X user AJ

World debt rose $7.5 TRILLION in Q1 2025 to a RECORD $324 TRILLION. Emerging markets debt hit a RECORD of $106 trillion. Global debt-to-GDP ratio fell slightly to 325%. Emerging markets' debt-to-GDP hit a record 245% - X user Global Markets Investor

Debt is affecting America at the various levels - consumer, federal government and even corporate. As the global reserve currency, any economic volatility can affect the rest of the world. Is this going to bond other countries together? Is this going to be make other assets like cryptocurrency more popular?

(This is an extract from my weekly preview - 09Jun25)

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