President Joe Biden signed a bill raising the debt limit of the United States by 2.5 trillion, thereby allowing the nation to pay its bills the coming year and avoiding a default.
The United States has a national debt of approximately $29 trillion, or $230,000 per taxpayer, while the federal budget deficit stands at $2.8 trillion. The deficit rises from a shortfall between $4.1 trillion of federal tax revenue and $6.9 trillion in official federal spending.
The US federal debt to GDP ratio has reached record levels at 126% up from 55% in 2000. Meanwhile US personal debt stands at $22 trillion or $67,000 per citizen.
According to Treasury Secretary Janet Yellen a failure to increase the borrowing limit could have led to job losses and a recession.
The largest budget items are Medicare/Medicaid at $1.3 trillion, Social Security at $1.1 trillion, Defense/War at $719 billion and interest on debt at $420 billion.