The annual U.S. deficit for Fiscal Year will be $600 billion.
That’s $125 billion higher than last year!
If the federal government does not implement a serious course correction, our country will turn into Greece by 2046, with national debt hitting 141% of our country’s Gross Domestic Product.
The deficits are not getting better. They are getting worse, and with an aging, retiring population, more people will be drawing rather than contributing to retirement programs.
Even though the Federal Reserve has driven down the interest rates to a nominal 1.4%, the interest alone on our national debt will become 5.8% of our budget.
That’s billions wasted on interest, not national defense, justice, or infrastructure.
That’s money that could repair our national infrastructure, secure our borders, rebuild our military.
Today, more than half of the United States’ public debt belongs to foreign investors.
If these investors fear that the United States is going to default, or limit the return on their debt, they may sell off their bonds, and other nations may refuse to purchase the debt, or demand a higher interest rate, which will lead to even higher debt.
Or worse, these foreign investors could turn hostile and demand repayment.
Is there a way out of this deficit-ridden, national-debt death spiral?
If the federal government cuts wasteful and unnecessary federal spending and move to create a surplus rather than a deficit, then our government can reduce the disastrous consequences of ballooning interest payments and and economic crises that it could produce.
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