USA faces severe debt crisis with $2 trillion deficit, rising interest rates, and risk of high inflation.

The US is facing a severe debt crisis, with projected deficits reaching $2 trillion this fiscal year and rising in the next two years. The Federal Reserve's rising real rates are exacerbating the situation, as the US Treasury must refinance $7 trillion in debt this year. The US savings rate has dropped to 0.6%, unable to fund the growing debt, contributing to chronic trade deficits. The risk of a stealth default and inflation levels reaching 20-25% is increasing, potentially leading to a self-fulfilling crisis.