US debt: a threat to the economy and security
The economic stability of the United States is often referred to as a model. However, rising public debt raises serious concerns about the future of the US economy and security. What is the significance of this debt for Americans and what might it mean for their homes, purchasing power and national security?
The public debt of the United States exceeds 34 trillion dollars, representing more than 120% OF GDP. These astronomical figures raise questions and concerns.
According to banker Jamie Dimon, the US debt is "the most predictable crisis"that threatens the nation's economy. His words underline the urgency of the situation, which, in his view, requires immediate action on the part of the government.
As concern grows, other well-known figures are joining the debate. The Director-General Bank of America, stresses the need to take action to address the problem. Bestselling author Nassim Taleb warns of an economic "death spiral"while Fed Chairman Jerome Powell calls for an "adult conversation" about fiscal responsibility.
" Housing, construction, automobiles and any other interest rate sensitive sectors will be "disproportionately" affected by the attempt to balance the national debt. Higher government debt will tend to raise interest rates. If a government creates debt, it must be financed somehow - by taxes or money creation. If debt gets out of control, money creation has historically been the (false) solution because it is easier to spend money than to raise taxes, but it is often more disastrous and has long-term consequences."
William G. Gale, economist
Tensions are rising, but political action is not yet on the the first priority. Given that the debt has been accumulated over a long period of government spending by both Republicans and Democrats, fixing it is not a task of just one of one party or the other.
It is therefore urgent that politicians to act and seek permanent solutions to this urgent problem. The future of economic stability and national security in the United States depends on on its ability to effectively address the growing public debt and ensure a sustainable future for all citizens of the country.
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