Has the U.S. government lost its mind? As it may sound unbelievable, the U.S. government has decided to add $5 billion daily to its national debt over the next decade. This means that over one year, the U.S. government will add $1.825 trillion to the national debt, thus $18.25 trillion over the next ten years. This is insane. The U.S. national debt is already nearing $33 trillion. With these $18.25 trillion planned to be added to the national debt, the national debt is expected to be about $51.25 trillion by 2033.
This is based on projections from the Congressional Budget Office (CBO), which forecasts that the national debt will rise from $32.5 trillion now to $50 trillion by 2033.
This is a staggering amount of debt, and it is a major concern for economists and policymakers. The United States is already the world's largest debtor nation, and this trend is only going to continue if we do not make some changes to our fiscal policy.
There are a number of reasons why the U.S. government is adding so much debt. One reason is that the government is running large budget deficits. In recent years, the federal government has spent more money than it has taken in, and this has led to a growing debt. Another reason is that interest rates are expected to be cut soon, which means that they will be very low. This makes it cheaper for the government to borrow money, which encourages them to do so.
This decision came after the infamous Fitch Rating’s downgrade of U.S. creditworthiness. Again, the Fitch Ratings’ downgrade of the United States’ creditworthiness is absolutely legitimate because the U.S. economy is currently overleveraged. And what the U.S. government is trying to do is to deepen that overleverage, which will only worsen its inability to pay back its obligations. Continuing to be overleveraged will not make the U.S. economy but weak instead because the continued rise of the national debt will simply keep reducing the real value of wealth creation.
The growing national debt is a serious problem, and it is something that we need to address. If we do not, it could have a number of negative consequences, such as higher interest rates, inflation, and a decline in the value of the dollar.
The national debt could be reduced if the U.S. government reduces its budget deficits; if interest rates are maintained at a reasonable level, and if people invest in the U.S. economy, such as in its manufacturing sector. It is essential for the U.S. government to reduce its spending by reducing the number of entitlement programs. Indeed, these programs such as Social Security and Medicare, are very expensive, and they are going to become even more expensive in the future with the increase of the national debt.
Now the question is, does the U.S. government truly want to reduce the national debt? Of course not. If the U.S. economy continues to be overleveraged, then how do they expect Fitch Ratings to keep a good credit rating for the United States?
The problem of the national debt cannot be ignored because its increase is a burden that future generations will have to bear. Some economists may say that we don’t have to worry about the national debt because we owe it to ourselves, but the impact of its endless increase will have serious implications for future generations.