Is the proverbial sh*t beginning to finally hit the fan?
Hedgeye Macro/Financials analyst Josh Steiner is more than a little knowledgeable on this important topic. He discussed the rapidly ballooning, unsustainable level of US debt with Hedgeye CEO Keith McCullough this morning on The Call @ Hedgeye.
The debt-to-GDP ratio is simply a measure of a country's national debt compared to its gross domestic product (GDP). It indicates how much the country owes, relative to the size of its economy.
For half a century, the US debt-to-GDP ratio was within a range of 20% to 45%. However, in the few years since COVID, that ratio has skyrocketed to 100%. Making matters worse, it is (conservatively) projected to reach 170% over the next three decades.
“Does it hit a wall at some point—and if so, when and what’s that threshold?” asked Steiner.
“You just don’t get to issue all this debt and then not pay the bill,” concluded McCullough.
Watch the full clip to hear why things may be worse than they seem.
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