The U.S. National Debt Officially Surpassed $40 Trillion in August: Here's What History Says This Means for the Stock Market
This enormous figure shines a bright light on the country's troubled financial situation.
Overview
Milestones are usually meant to be celebrated, but this achievement isn't necessarily a positive development. The U.S. government's debt balance has officially exceeded $40 trillion. This massive sum is equal to 124% of the country's gross domestic product (GDP), up from a 62% share in 2006.
What's more, the federal debt burden has more than doubled in a decade. Compared to 20 years ago, it has exploded 376% higher. Within the U.S. budget, more money goes to interest payments now than it does to anything else, except Social Security and Medicare.
Details
Here's what history says all of this borrowing means for the stock market. Investors will want to pay attention.
Source
Originally published at www.fool.com.