Kunpeng Project
The U.S. national debt is on the rise, and interest payments will exceed this year's defense budget
Introduction. The huge debt problem of the United States is like a sword of Damolisk, hanging high over the head of the economy, and there is always a danger of being cut down. The United States is the largest economy in the world, and it is constantly borrowing and increasing its own debt, according to recent statistics, the number of US bonds has reached 34 trillion. While the U.S. Treasury has been able to consistently repay loans by issuing debt, the huge annual interest rate bill has become a pressure that could outweigh defense spending. The problem of debt is a problem that cannot be ignored, and this paper analyzes the causes and consequences of the rapid growth of debt.
U.S. Treasury rates continue to move higher.
In recent years, the U.S. treasury has swelled dramatically, in large part due to the growing need for spending such as illness, and when the Federal Reserve raises interest rates, the interest rates on the U.S. treasury rise, raising its interest rates. The United States** will pay another 1 over the next 10 years1 trillion yuan in interest, this figure has already surpassed the defense budget and accounts for a large part of the ** spending. In the context of interest rates, in the next ten years, only social security and medical insurance can exceed the interest rate of spending, and other expenditures are far behind. Americans are expected to contribute the equivalent of 3 percent of gross domestic product by 20349% interest rate, and this crisis will become a potential threat of "the sky falling".
1. The debt crisis poses a threat to the economy and financial markets.
Investors are widely concerned about the impact of the expanding US budget on the global economy and finances. Campbell Harvey, head of research at the research institute, noted that while it is difficult to predict exactly when the outbreak will occur, over-indebtedness will be a potential problem. The U.S. Treasury raises money by giving bonds to investors around the world, but when its budget increases, it has to continue to issue new debt to pay its debts. Americans are expected to have $48 trillion** of bonds in 2034, more than eight times more than in 2008, which will make the U.S. debt as high as 97% and as high as 116%. In this case, the debt problem in the United States will become more and more serious, and the excessive fiscal supply will push the US Treasury yields higher, which will lead to higher debt levels and interest rates in the United States.
2. The debt crisis has triggered people's worries about the economy.
German newspapers have widened the gap between the rich and the poor in the United States, and they have also become more worrisome because of the debt crisis in the United States. Karlingward, an analyst at JPMorgan Stanley, said the continued expansion of the US treasury's liabilities "delayed" the danger of a depression, but did not reduce its own danger. Former President Richard Fisher also warned that if the US continues to borrow, the oversupply of the bond market will push up the yield of public debt, causing greater fiscal turmoil and increasing the likelihood of instability. The current fiscal situation of the United States is not optimistic, and neither is its fiscal situation, and its debt situation is in danger of further deterioration.
Conclusion. The issue of US treasury bonds is the focus of attention of all countries in the world today, and the annual rise in the interest rate of US treasury bonds will not only increase the cost of using treasury bonds, but will also have a profound impact on China's economy and financial market. To this end, we should start by reducing the total amount of debts and adjusting the structure of expenditures, and strive to prevent the emergence of new debt problems so that China's economy can maintain stable and steady development. At present, China is facing a serious debt problem, which requires all levels and the whole society to be cautious and use practical measures to maintain the stability of China's financial system and the development of the national economy.