An economist claims that the United States urgently has to undergo a “debt detox” because, before anyone knows it, a recession will be upon us.

As the nation’s debt situation continues to worsen, a market expert is sounding the alarm and recommending a “debt detox” in order to experience “the next great boom.” “We are going to have to finally have a short-term debt detox before we can get going on the next great boom,” Harry Dent, a financial author and founder of HS Dent, remarked during his interview on “Cavuto: Coast to Coast” on Tuesday to the audience.

Dent told the host, Neil Cavuto, “Here’s the number, Neil,” and he was there. “Nobody’s totaling this up: Twenty-seven trillion [dollars] in debt and deficits from the government and money printing combined since the 2008 downturn to get us through that long ditch and spending.” “And now the millennials are ready to spend money 2024 to ’37, as I also predicted a long time ago,” he went on to explain.

In his argument, the economist stated that the United States is currently experiencing a “massive financial asset bubble that hasn’t deleveraged super-high debt levels,” which may result in more severe issues. As one of the numerous factors contributing to the current amount of debt, Dent pointed the finger of blame at the excessive response to the overstimulating of COVID. He stated that this endeavor “didn’t make sense.”

According to the most recent data released by the Treasury Department regarding the national debt, which is a measurement of what the United States owes its creditors, the national debt increased to $34,608,412,560,642.47 as of Monday afternoon. This is an increase of around $1.7 billion when compared to the figure of $34,600,643,492,585.10 that was reported the day before. When compared to the current level of the national debt, it was approximately $907 billion just forty years ago.

As a consequence of this, Dent makes the prediction that the Federal Reserve will be forced to “hammer down,” and that the American people may anticipate “feeling this on a year-and-a-half lag into early to mid-next year.” When asked why the debt may be at its breaking point, Dent responded that it is because of the Federal Reserve’s 525 basis points, which are amounts that the forecaster stated triggered the “deepest recession” in 1980 and tightening.

With the benchmark federal funds rate currently lying at a range of 5.25% to 5.5%, the Federal Reserve policymakers have raised interest rates to their highest level in twenty years. As a result of inflation reaching a 40-year high of 9.1% year-over-year in June 2022, these rate hikes were implemented. However, inflation has since decreased to 3.2% as of February 2024, which is still a significant amount higher than the Federal Reserve’s target rate of 2%.

American economists believe that the year 2024 will bring about the “biggest crash of our lifetime.” People are more likely to overinvest, overspend, and overborrow when they are overstimulated and given an excessive amount of money. It would appear that they are already borrowing from the future. “Then, when you turn around and have to clamp down because you created 9.1% inflation overnight in an economy that was supposed to be experiencing zero inflation, by the way, and that is another thing that my indicators have been predicting for a long time,” Dent emphasized.

“Then you get this mess like, oh, my gosh, now you’re going to force all this debt in excesses to suddenly deleverage,” said the economist. In his explanation, Dent stated that the economy “always overdoes stuff” and then “deleverages,” which means that the debt is converted into unsuccessful investments. As far as Dent is concerned, the economy has “not been allowed” to detoxify any longer.

“I believe that we are going to be compelled to deal with this. I’m merely going to notify the investors… Hold off until this stimulus exerts its full impact. The entire extent of its impact won’t be known to us until the beginning to the middle of the next year. His emphasis was on the fact that he believed that we will be in a recession before people even realized it.