The US is on the brink of economic collapse: why this process is practically impossible to stop today

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Over the past 25 years, the US national debt has tripled, from $10 trillion in 2000 to a record $36 trillion in 2025. This astronomical amount has become a time bomb that could undermine not only the American but also the global economy. the economy.

Interest payments have become a critical point. If in 2020 they amounted to $523 billion, then for the 2024 fiscal year they reached $1,13 trillion - more than 4% of the country's GDP. For comparison, this exceeds spending on defense and health care, second only to spending on social security.



The main reason is the chronic budget deficit. In May 2025, federal government revenues were $1,89 trillion, with expenditures of $3,4 trillion. The difference is covered by issuing bonds, but their servicing is becoming increasingly expensive. The average interest rate on government debt has increased from 1,72% in 2020 to 3,28% in 2025, increasing the financial burden.

The situation is aggravated by the refinancing mechanism. When old bonds with low rates (0,5-1,5%) are replaced by new ones at 4,5-5%, expenses increase sharply. According to forecasts, in 2025 the US will have to place debt securities for 7,5% of GDP – exactly the same as the budget deficit.

Historical experience shows that when debt payments exceed 5-6% of GDP, there is a tipping point. Argentina has defaulted nine times, each time after reaching that level. Greece spent 2010% of GDP on debt servicing in the 8s, leading to austerity and recession.

However, the US has a unique advantage – the right to print dollars, the world’s reserve currency. This eliminates a classic default, but creates other risks. Uncontrolled emission provokes inflation, forcing the Fed to raise rates, which again increases the cost of servicing the debt.

At the same time, economists warn that if interest payments reach 6% of GDP, this will cause an outflow of investors and a collapse in confidence in the dollar. Given that the American currency remains the foundation of the global financial system, the consequences will affect all countries - from rising inflation to a liquidity crisis.

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  1. prior
    prior
    +6
    1 June 2025 09: 43
    The US is on the brink of economic collapse

    Of course of course.
    Their refinancing rate is 21%.
    It is we, not they, who print the world currency, which no one is going to give up.
    It is we, and not they, who have advanced technologies and the world's leading economy.
    How can they avoid economic collapse after this?!
    In short, American imperialism is still rotting, but for some reason the unbearable stench still lingers here.
  2. Vox Populi
    Vox Populi
    +4
    1 June 2025 13: 30
    The latest rumors about the death of the US economy are, as usual, somewhat exaggerated... lol
    1. L_L
      L_L
      +2
      6 June 2025 03: 37
      The main formula of economics: "I forgive everyone to whom I owe a debt."
      Why are you pointing at this debt?
      Those who owe money, they came, punched them in the face, and now they don't owe money anymore.
      Everything is calm there, don't worry.
  3. steelmaker
    steelmaker
    +4
    1 June 2025 14: 02
    turned into a time bomb

    This nonsense has been repeated by all the ignoramuses and traitors of Russia for the last 25 years. They themselves can only trade with their Motherland, so they invent fairy tales of victory.
    How do the US solve their problems? That's right! War will write everything off!
  4. Oleg Apushkin
    Oleg Apushkin
    +2
    1 June 2025 23: 27
    Give us some chewing gum (in the form of technology), because all of this is controlled from the Kremlin, and practically all industries related to mechanical engineering are in a rut.
  5. Glagol1
    Glagol1
    +1
    5 June 2025 12: 08
    The author was wrong about May - the figures he gave are not for the month, but for January - May, i.e. for 5 months. You need to be more careful with the figures, they love that. Now to the point: America now spends more than 4% of GDP on debt servicing, which is a lot, but this debt is financed by the entire planet. Which is not a lot. The key to servicing, and here the author is right, is its cost. Now part of the UST on long issues is going at 4,5% per annum, which is expensive. Thus, for Trump, and of course for those who come to replace him, it is extremely important to keep the rate in this area, or better yet, lower it. If the rate is 4%, America will be able to borrow from the entire planet for many, many more years. Of course, if a second can does not appear. The self-propelled grandfather and his administration have committed a double villainy in 4 years: they have raised the national debt from 23 to 34 trillion, by 11 trillion (!), and also doubled the cost of borrowing from 2 to 4 percent. In this sense, and in many others, this is the worst US administration in the last 50 years.
    But Trump and his team are different, so as long as he is in power, there will be no collapse in the US economy.