At 18:00 local time, the total debt of the US federal government exceeded $33 trillion for the first time.
In the words of Maya McKinnis, chair of the responsible federal budget committee, a nonpartisan U.S. organization, this is "the last step that no one can be proud of."
"These numbers make us stronger, but it doesn't put them at risk."
Screenshot of the official website of the Responsible Federal Budget Committee
It turns out that he is the "one who spends the most" for the next 30 years!
At the beginning of October last year, at the beginning of this fiscal year, the US debt exceeded $31 trillion; In June this year, it took eight months to exceed $32 trillion; Now it's an increase of $10,000 in just three months. One hundred million dollars.
Among them, the most concerned abroad is federal government debt, which is the guarantee provided by the US government to individuals, companies, states or localities, Federal Reserve Banks, and foreign governments.
Today, the size of that debt is more than $26 trillion.
The Congressional Budget Office projects that the U.S. national debt will double over the next 30 years, with gross domestic product (GDP) growth increasing from 97 percent today to 181 percent in 2053.
Screenshot of a Fox News report
While this is not new to the United States, which has always survived on debt, everything else is a thing of the past today, and most borrowing took place in the era of low interest rates. With the current round of US interest rate hikes starting in March last year, the rise in interest rates has pushed up the price of US debt.
According to the Committee on Responsible Federal Budgeting, a bipartisan research group, paying interest on the U.S. Treasury debt could become the fastest-growing part of the federal budget over the next 30 years.
By 2053, interest payments are expected to reach $5.4 trillion, more than the U.S. spends on all mandatory spending like Social Security and Medicare.
Screenshot of a Fox News report
It is widely accepted that the higher a country's debt-to-GDP ratio, the lower the country's ability to service and risk of default.
World Bank research shows that countries with debt-to-GDP ratios that have been chronically above 77% have seen a marked slowdown in economic growth.
Since the 2009 financial crisis, the US debt-to-GDP ratio has remained above 77%, and it exceeded 120% in the fourth quarter of last year
Screenshot of the US "Investment Encyclopedia" website.
In early May, when the United States faced a debt crisis, International Monetary Fund (IMF) Managing Director Georgieva warned that the United States needed to do more to reduce its public debt, including two ways to increase revenues. Reduce costs and control budgets. And raise taxes, "the sooner the better."
But for the United States, such reminders are unbearable. In fact, the "brutal growth" of US debt is the result of irresponsible financial issues between Democrats and Republicans.
Over the past decade, politicians of both parties have taken turns driving down the U.S. debt through policies such as tax cuts and increased government spending. The increasingly complex financial and debt issues have shifted from purely economic to bipartisan political negotiations.
Is the 22nd "shutdown" coming?
With the size of the U.S. debt exceeding the debt ceiling set by the previous Congress at the beginning of the year, the two parties struggled for months before the U.S. Treasury Department passed a bipartisan debt bill at the last minute in June, which was expected by the U.S. Treasury. Department. Insolvent. to avoid debt for the time being.
However, this bipartisan political agreement does not solve the underlying crisis, but instead gives the US government the freedom to "borrow without restrictions" until January 1, 2025.
To be sure, according to the U.S. Treasury, the amount of new U.S. debt in the third quarter of this year will exceed $1 trillion, much higher than the previously expected $733 billion and a record high for the same period.
Screenshot of the Reuters report
Of course, this is an agreement that has already been reached by both sides. As the fiscal year 2023 is coming to an end at the end of this month, it is the focus of the party's struggle.
After seeing the results of the new debt, far-right within the Republican Party insisted on putting more pressure on Democrats to cut spending. As a result, the Biden administration's proposed budget for the new fiscal year is difficult to pass. The White House urged Congress earlier this month to pass the bill. The short-term financing bill has not yet been implemented.
No wonder The New York Times lamented that the will of political institutions is being eroded by painful alliances, deep ideological divisions, mistrust and a stubborn refusal to compromise. "Restoring order on Capitol Hill will be very difficult."
Photo of the New York Times report
Since the enactment of the Congressional Budget and Retention Control Act in 1974, which transferred budget management from the executive branch to the legislative branch, the government's fight with the Senate and the two parties over budget issues has led to 21 "U.S. government shutdowns."
If Congress fails to resolve the issue by Sept. 30, cuts in government funding will threaten many federal programs and affect millions of Americans, including poor families.
Despite such a bleak outlook, in the eyes of some politicians, "shutdown" is not so important. Most government departments will still keep their jobs, and temporarily "dismissed" civil servants can take advantage of this time to rest and take over at a later date. Salary.
In this regard, the Washington Post commented that this idea is completely wrong!
At this critical juncture, the shutdown will shake confidence in U.S. leadership at home and abroad, and will further strengthen the case for the international agency Fitch's recent "downgrade" of the U.S. credit rating: sustained political pressure cannot be in Washington. Address worsening financial problems.
The Washington Post report screenshot is true that regardless of whether this round of disagreement will bring about the shutdown of the 22nd US administration, it is only a "middle ground" rather than an "end". The "pause" of US governance has become a reality.
According to a recent Pew Research Center poll, 63 percent of U.S. respondents distrust their country's current political system; A whopping 86 percent of respondents believe both Republicans and Democrats are more focused on conflict than problem solving.
Screenshot of the Capitol Hill report
Source丨World Media "Global Deep Observation"
Planning丨Wang Jian
Reporter 丨 Li Peng
Posted by丨Lin Wei
Signature Review丨Wang Jian
Producer丨Guan Juanjuan
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