By any measure, the current US fiscal situation is highly distressed. Total public debt outstanding exceeds $36 trillion, double what it was just a decade ago and more than 120% of gross domestic product (GDP). Annual interest expense is set to surpass a staggering $1 trillion. The federal deficit was $1.8 trillion for fiscal year 2024, or 6.4% of GDP. Respected analysts argue the US is already in fiscal dominance, defined as “an economic condition that occurs when a country’s debt and deficit levels are sufficiently high that monetary policy can no longer effectively control inflation.”

Doomberg