Here’s the good news – U.S. debt levels will be perfectly normal relative to other developed countries over the next few years, according to the International Monetary Fund.
Here’s the bad news – It’s because every advanced nation is piling on debt like there’s no tomorrow.
Thus massive government debt is the new normal for the G20 nations. For the U.S. dollar, this is actually great news relative to other major G20 currencies. Meanwhile, developing nations will continue reducing debt to GDP, which is even better news for theirs.
The Economist: The IMF forecasts that gross government debt among advanced economies will continue to rise until 2014, reaching 114% of GDP, compared to just 35% for developing nations.
Chart via The Economist
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