Hi @Fat Harrys Cat, US debt level would not be a main concern as Health Cost is an essential item of everyday life. Regardless of the currency, its true value is always supported. Besides, PYC's drugs would be marketed world-wide, therefore a world price parity would be achieved and hence protecting the value of the assets.
U.S. Insolvency ?
You seem to be worried that US might go into default or enter hyperinflation in the next 3 years, basically "insolvent". Predicting the exact year when the U.S. would not be able to pay interest on its debt from GDP depends on several dynamic factors, including future economic growth, interest rates, inflation, government fiscal policies, and political decisions. However, we can consider key factors that could help in understanding the risks:
Current Debt Levels: As of today, U.S. national debt has surpassed $35 trillion, with debt-to-GDP ratios around 121% (this number fluctuates depending on various definitions of debt, e.g., gross vs. net debt). If debt continues to grow faster than GDP, the ability to service that debt could be strained.
Interest Payments: Interest payments on the debt are set to increase significantly, especially if interest rates remain high or rise. In the 2024 fiscal year, the U.S. would spend around $892 billion on interest, climbing from $1 trillion in 2025 to $1.7 trillion in 2034.
GDP Growth vs. Interest Rate Growth: If GDP grows at a slower rate than interest payments, the ability to pay down debt diminishes. For example, if GDP grows at 2% annually but interest payments increase by 5-6%, this would create increasing pressure.
A Crisis Year If current trends continue with growing interest payments, stagnant or slow GDP growth, and no major fiscal changes, some estimates suggest that by 2040 or later, the U.S. could face a serious fiscal crisis.
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