U.S. Federal Debt: Nearing the Brink of Unsustainability?

A Penn Wharton study suggests the U.S. could reach its public debt limit of approximately 200% of GDP in about 20 years under current fiscal policy. Currently, U.S. public debt stands at about 98% of GDP, or $26.3 trillion. Without corrective measures, the U.S. risks defaulting on its debt. Market confidence in future fiscal adjustments could shorten this timeframe if lost. The study also notes that the severity of the debt issue is often exaggerated, and recent increases in gold prices indicate growing concerns about debt sustainability.