The U.S. is expected a hit the ceiling on Thursday, forcing the Treasury Department to start using ‘extraordinary measures’ so the government can keep paying bills while Congress negotiates to try and avoid an economic meltdown.
American debt is now at an eye-watering $31.38 trillion – that’s 120 percent of GDP, up from 39.2 percent as recently as 2008 and 77.6 percent in 2018.
The staggering figure is the highest since the Second World War, equals $246,876 in federal debt per taxpayer and is more than the economies of China, Japan, Germany and the United Kingdom combined.
The ‘extraordinary measures’, set to be initiated Thursday, refers to accounting workarounds to ensure financial liquidity to keep the government open through at least June, according to a letter sent by Treasury Secretary Yellen to Speaker Kevin McCarthy on January 13.
If a deal is not made by the Summer, the fallout could result in a global economic crisis. Since 1960 Congress has raised, extended or revised the…