U.S. Debt Tops 101% of GDP, CRFB Projects 120% by 2036
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- U.S. public debt crossed the 100% of GDP threshold in 2012 and reached 101% of GDP last month.
- Committee for a Responsible Federal Budget warned that debt could climb to 120% of GDP by 2036, with interest payments consuming 26% of federal revenue.
- Bloomberg labeled rising inflation a "mirage," while Fortune Magazine linked inflation and debt risks to the Iran conflict, illustrating divergent media narratives.
- Strait of Hormuz carries 20% of global oil shipments; the United States imports 7% of its oil through the strait, whereas Japan imports over 70%.
- Europe' push for war in Ukraine is identified as the most significant threat to the global economy, potentially dwarfing any Iran‑related oil shock.
- Federal Reserve is blamed as the primary driver of U.S. debt and inflation due to its money‑printing policies.
- Domestic unrest—including NGO‑funded leftist riots and terror attacks—is described as a secondary hazard that could destabilize the United States.
Why it matters: Policymakers face a fiscal squeeze as interest payments could consume a quarter of federal revenue by 2036, while the author warns that a European war over Ukraine—largely ignored by mainstream debt narratives—could deliver far larger economic disruption to the United States and global markets.
