US Debt Surpasses 100% of GDP for the First Time Since World War II— Is the Fiscal Squeeze Actually Defla

Publicly held federal debt has officially eclipsed the size of the entire American economy, crossing the 100% gross domestic product (GDP) threshold for the first time since 1946.

While traditional economic theory warns that this fiscal squeeze could trigger runaway inflation, a growing chorus of contrarian analysts argues that the massive debt load might actually be deflationary.

A Historic Fiscal Milestone The United States' national debt has reached a level not seen since the immediate aftermath of World War II, Steve Rattner, Morning Joe Economic Analyst, highlighted on Thursday.

Unlike the debt spikes of the 1940s, the current trajectory to $39.4 trillion in debt is not the result of a sudden global conflict.

Under Trump, U.S. federal debt has surpassed 100% of GDP for the first time since WWII.