The U.S. national debt is on the verge of exploding! The average debt per capita is nearly US$10,000

[New Sancai Compilation and First Release] Do you believe it? The current national debt of the United States is nearly 33 trillion U.S. dollars, and the average debt of each American is more than 9,800 U.S. dollars, and it is increasing at a rapid rate.

In 1989, Seymour Durst, a famous American real estate tycoon, installed a clock in New York that counted and displayed the amount of the U.S. national debt at any time. At the time of its establishment, the U.S. national debt was close to an astonishing three trillion dollars. Today, the U.S.'s GDP has increased elevenfold to nearly 33 trillion U.S. dollars, and is growing rapidly at a compound interest rate of more than 163,000 U.S. dollars per hour.

An American financial expert said that the national debt of this size has reached close to 130% of the gross domestic product (GDP) of the United States and is almost on the verge of economic disaster. Next year, the United States will have to pay $1 trillion in debt interest. If this rate is followed, it is estimated that the U.S. national debt will reach 50 trillion U.S. dollars within ten years. If it continues without triggering U.S. fiscal collapse, it will reach 150 trillion U.S. dollars in 30 years.

A U.S. news media recently interviewed this financial expert to help the public understand the current situation of the U.S. national debt and how to control it. The expert also suggested that American citizens use their votes to elect people who face the national debt problem and can promote it. Lawmakers and government officials addressing the national debt.

The interview pointed out that there is an imminent financial crisis in the United States. The current national debt of the United States is so large that it no longer has the ability to repay the debt other than borrowing more money to finance it. Once investors stop buying U.S. Treasury bonds, the United States will face bankruptcy. This is a very scary prediction.

The financial expert said that the U.S. national debt is actually on the verge of exploding. If there is no financial source to repay the old debt, it may collapse, resulting in a tragedy similar to a Ponzi scheme.

(Note: Ponzi scheme is an ancient and common money scam. It uses abnormally high returns to defraud investors to join one after another, and uses part of the money invested by late entrants as dividends to pay out to early entrants. This snowballs. Continuous expansion like this will eventually lead to collapse and bankruptcy due to the lack of new entrants and the inability to pay dividends.)

Experts say that if the United States cannot pay its debts, it will lead to a global financial disaster. When Greece faced a financial crisis, the European Union spent more than 80 billion euros to rescue her, but no country in the world had the ability to rescue the U.S. debt. Once the U.S. Federal Reserve starts printing large amounts of money, it will cause interest rates to soar and form a vicious cycle that cannot be solved. This disaster can quickly snowball into unimaginable proportions.

The U.S. administration and most members of Congress are incapable of, and do not seem to want to, solve this problem, because the only way to solve the debt is to restrict national fiscal expenditures, which means restricting people's welfare and public expenditures, and in this way they will not be able to win votes. Make yourself available for election or re-election. Therefore, we must try to make voters aware of the problem and call on them to elect willing and conscientious members of parliament, local chiefs and presidents, and support them in taking action to establish responsible fiscal and monetary policies to solve the problem.

The expert believes the country's welfare system as a whole is outrageous. These programs were launched in the 1960s to help people escape poverty. The United States has spent more than $25 trillion on poverty relief over the past sixty years, but the level of poverty has not improved. The entire Medicare, Medicaid and Social Security program is financially ill-conceived, costing a trillion dollars a year. The social security system seems to be poorly managed. According to the current consumption rate, the fund will be exhausted within ten years. Therefore, these three welfare policies must be reformed. In the future, the welfare benefits of beneficiaries must be reduced, otherwise they will be completely depleted. . That’s not even counting the trillions of dollars spent on combating the coronavirus pandemic and aiding victims, as well as the Biden administration’s green policies.

Although the U.S. government is now short of money to repay its debts, as long as it can continue to borrow money, disaster will not happen. Fitch Group's Fitch Ratings has already lowered the credit rating of the United States, which has sounded the alarm to the U.S. government. But politicians in Washington continue to spend money blindly. Some members of Congress understand but have yet to take any action.

The interview mentioned that the policies of the Biden administration have increased the national debt by US$5 trillion, but this is not just a problem for Biden. This problem has continued since Clinton balanced the national fiscal balance, and subsequent administrations have also Neither managed finances well.

The expert suggested that now that it's election time, Americans should express their concerns about the country's fiscal future to the president and all candidates. Push politicians to stop spending, cut back and come up with solutions.

The interview also talked about the situation of foreign countries lending money to the U.S. government. Experts said that foreign countries do not lend as much money to the U.S. government as people think. China once held more than $1 trillion in U.S. debt, but now it has less because it has been selling off its U.S. debt holdings. In fact, Japan is the largest lender, lending more than $1 trillion to the United States.

The reporter asked this expert whether the United States could become better if the current size of the U.S. government could be reduced. Experts explain that the original intention of the U.S. Constitution was to limit the size of the government, and it has been in operation for nearly two hundred years. But starting in the 1960s, the size of the government has rapidly expanded into the behemoth it is now. Such a huge government structure has hurt the growth of the United States, consumed huge funds, and caused people in need to not receive appropriate help. subsidy. The expert made his recommendations – reducing the size of government, cutting taxes, and adjusting budget allocations in order to promote more investment and accelerate economic growth.

(Compiled by: Mulian)

(Editor: Jiang Qiming)

(Source of the article: First published by Xinsancai)