Forex Guides

US Debt Review 18 Nov 17

Good day forex traders.

It has been a while since we visited the topic of the debt held by the US government. One of the main concern remains which is that of how much is too much.

Looking at the chart above, we note that debt continues to accumulate and it is now above $20 trillion. It is $20,529,210,216,668.85 as of 16 Nov 17.

As the debt amount increases, interests cost will rise and this poses an increasing drag on the financial situation of the US.

Without a return to healthy deficit levels, there will likely be many complications. For example, as the baby boomers generation retire, the strain on social security may compound with the debt complication.

As problems manifest, the demand for the US dollar may drop. This will likely in turn further depresses the situation which may go on to trigger further erosion of demand.

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