The Yank federal debt has skyrocketed to unprecedented heights, tipping over 33 trillion bucks, which clocks in at about 129% of the American GDP. The interest payments on this debt hit a staggering $659 billion this fiscal year, more than double the entire GDP of the Czech Republic.
Under the watch of the Democrats and President Joe Biden, the Yank government's debt has nearly doubled in the past two years, and it's starting to look a bit dodgy. Some of the Libs and economic boffins reckon this level of debt is now on the nose and could pose a risk to the stability of the global economy.
Adding fuel to the fire are the Federal Reserve's interest rates, which are currently sitting at their highest in 22 years, floating between 5.25 to 5.50 percent.
The interest payouts on the federal debt are nipping at the heels of defence and healthcare expenditures and might, in a few years, slide into the number two spot in the Yank budget, right after social security and pension schemes.
If the Yank government keeps copping increasing costs for its debt and can't manage the sitch, it might find itself having to borrow even more dosh by issuing bonds to cover the interest. This could lead to a bit of a financial wobble, impacting not just the Yanks but the global economy as a whole.
So, it's not a stretch to think the world could be staring down the barrel of a major economic downturn, affecting folks all around the globe. It's bloody crucial that the Yank government and Congress pull their socks up and take the necessary steps to avoid a potential disaster.