US National Debt Hits $35 Trillion. Debt-to-GDP Ratio, at Scary Levels, Dips a Tad. And T-Bills’ Share of this Debt

 The US national debt - the total amount of Treasury securities - rose to $35.00 trillion, according to the Treasury Department on Friday.

Since the beginning of the year, in less than seven months, the debt has jumped by $1.0 trillion.

If current-dollar GDP grows faster than the debt, the burden of the debt on the economy diminishes.

That's the hoped-for but for the US overall elusive scenario of "Growing your way out of the debt." During recessions, the burden of the debt spikes because the debt increases and GDP declines - a double-whammy for the debt-to-GDP ratio.

Over the same period, the debt grew by 50%. As current-dollar GDP grew 31% and the current-dollar debt grew by 50%, the burden ballooned.

In Q2, current-dollar GDP grew faster than the debt.

So with current-dollar GDP growing faster than the debt in Q2, the debt-to-GDP ratio dipped a bit to a still huge 121.7%. The burden of the interest payments.

https://wolfstreet.com/2024/07/27/us-national-debt-hits-35-trillion-debt-to-gdp-ratio-at-scary-levels-dips-a-tad-and-t-bills-share-of-this-debt/