Project Sword
Previously, the United States has always been synonymous with economic development. But now, the United States can no longer keep such a title. During the Biden administration, the U.S. national debt has increased significantly, and the interest paid each year has also increased. Just like now, the yield on US Treasuries is rising, and the interest that the United States needs to pay has also increased to a high level, even exceeding defense spending.
According to the news network, according to the US agency, the United States will pay an additional $1.1 trillion in interest on national bonds in the next 10 years. And this year, the United States will spend $870 billion in interest repayments, which accounts for 31% share. In other words, the total interest expenses will exceed the defense spending of the United States. Such high interest costs will have an unimaginably serious impact on the United States.
High levels of government debt could lead to higher long-term interest rates, making borrowing more expensive. This will affect the investment and consumption decisions of businesses and individuals, slowing economic growth. Moreover, high levels of national debt could lead to large interest payments, limiting investment in other important sectors, such as infrastructure, education, and innovation. In the long run, this will have a negative impact on productivity and economic growth. If such a situation cannot be resolved quickly, the United States will suffer a big loss.
Biden is not only that, but high Treasury bonds could cause a distortion of supply and demand in the bond market, pushing interest rates higher. This will have a negative impact on the cost of financing for businesses and individuals, increase the cost of corporate borrowing and dampen consumer spending. In addition, high levels of government debt may constrain monetary policy, and central banks may need to tighten policy to control inflation and rising interest rates. This can have a detrimental effect on economic stability and financial markets.
At the same time, high levels of national debt have increased the debt burden and increased risks to fiscal sustainability. Excessive debt can lead to difficulty in paying debts and may even trigger a debt crisis. Moreover, high levels of government debt could lead to credit rating downgrades, further raising borrowing costs. In addition, the loss of investment grade could lead to a decline in demand for U.S. bonds, limiting access to funding. Once such an outcome occurs, it will be difficult for the United States to issue more Treasury bonds.
In addition to the impact of the economy and interest rates, high national debt may lead to public spending cuts, including in areas such as education, health care and social welfare. This can have a negative impact on vulnerable groups and the sustainability of social welfare programs. High national debt could lead to higher tax revenues or debt passed on to future generations, exacerbating inequality in the distribution of wealth. Higher taxes may place a greater burden on low- and middle-income households, while the wealthier class generally has more fiscal freedom.
Moreover, high national debt could weaken the economic power and geopolitical influence of the United States. Other countries may see the U.S. fiscal situation unstable, leading to a decline in confidence in the U.S., which in turn increases U.S. uncertainty in international affairs.
The most serious part of the U.S. debt crisis is that high national debt could reduce U.S. competitiveness in the global economy. Restrictions on investment, as well as an unstable economic environment, may allow other countries to occupy a more favorable position in the international market, which will lead to the loss of the initiative of the United States.
In fact, the United States** understands the dangers, but it cannot solve the national debt problem. Because the issue of national debt involves political, economic and social aspects, there are often divisions and conflicts between different political factions, interest groups and stakeholders. Political strife and conflicting interests have led to the inability to reach a consensus in formulating a solution to the national debt, which has severely hampered the resolution of the problem.
The ongoing bipartisan political struggle in the United States is the result of a long period of accumulation and reflects the complexity of economic and fiscal challenges. These challenges include economic instability, high unemployment, low growth and inequality. And none of these problems can be solved by Biden alone.