DEFICIT DANGER

While the US debt just crossed the $40 trillion mark, what matters much more is debt held by the public, and it’s “only” $32.3 trillion. The difference is intragovernmental debt. But even that number needs context. The critical number: the debt-to-GDP ratio, which, with 26Q2 GDP at roughly $32.5 trillion, is about 100%, near levels last seen just after WWII. The real problem; the staggeringly large 6% annual deficit.