U.S. National Debt Soars to Alarming $34 Trillion, Echoing Credit Downgrades and Fiscal Warnings
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As the festive season's glow dims, Americans confront a sobering fiscal reality: the United States' national debt has surged past an unprecedented $34 trillion, according to a recent announcement from the Department of Treasury. This eye-watering figure was confirmed on December 29, merely 105 days after the national debt crossed the $33 trillion mark in September, marking a breakneck pace of debt accumulation that outstrips projections.
As predicted, federal debt breached $34 trillion on 12/29/23 as Treasury borrows over $90 billion in a single day - even a talented technocrat like Yellen can't hold back this tide: pic.twitter.com/HqFckOUlJ8
— E.J. Antoni, Ph.D. (@RealEJAntoni) January 2, 2024
The gravity of the situation is underscored by the downgrading of America's credit rating by Fitch last August and by Moody's in November, reflecting growing concerns about the nation's fiscal health. Despite these warnings, political factions in Congress, often referred to as the "uniparty," continue to approve spending that exponentially inflates the debt, ostensibly for programs related to diversity, climate change, and military engagements abroad—commitments made in the name of future generations.
The implications of this ballooning debt are dire. During the 2008 financial crisis, the national debt was a third of its current size, with the government incurring over $1 billion daily in interest. Today, that figure has tripled to $3 billion per day. The Peterson Foundation estimates an expenditure of nearly $11 trillion on interest alone in the next decade, excluding potential new debt from additional spending initiatives.
The situation is compounded by unfunded liabilities, particularly in entitlement programs such as Social Security, Medicare, and government pensions, which add at least another $100 trillion to the fiscal burden. This translates to over $1 million per American household, a staggering fivefold increase on the median U.S. household net worth.
Historically, nations have extricated themselves from such debt spirals through massive austerity, as seen in Argentina; hard default, which would involve reneging on debts to creditors like Wall Street; or resorting to inflation. The latter, given its political palatability and Wall Street's influence, appears to be the likeliest path the U.S. might take.
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As the nation edges closer to a potential debt spiral and point of no return, the critical question remains: how will America navigate this fiscal quagmire?
