America's $175T Problem

The article argues that the United States and the wider Western world face a sovereign debt crisis worse than 2008, and that official figures understate the problem. It cites the Fed making more emergency loans in 2023 than during the 2008 financial crisis, and US interest payments on the national debt becoming the second largest government expense, ahead of defense. It also points to the dollar losing at least 25% of its value in four years, China dumping Treasuries, and a $175.3T true debt figure from the February 2024 Financial Report of the United States Government. The author concludes that the Magnificent 7 tech companies' combined market cap of $15.65T is under 10% of that debt, so AI cannot grow the US out of it.