Over the past years, the global markets have focused on China more, when it comes to debt, arguing that the marginal productivity of increased debt has declined substantially. The debt growth has outstripped GDP growth in China by son much that the Bank of International Settlements (BIS) has warned on the debt to GDP gap, in its quarterly report, arguing that it could lead to a banking crisis.

However, China isn’t the only economy where debt growth is outstripping GDP growth. The United States is suffering from the same chronic issue. Debt is growing at a much faster pace than that of GDP. On September 30th, United States closed out the 2016 fiscal year with a debt level of almost $19.6 trillion. That is an increase by approximately $1.42 trillion. The debt level in the world’s biggest economy grew by 7.5 percent. Compared to that, GDP grew by 1.6 percent on an average. The debt is hovering well above 100 percent of the GDP.