U.S. Debt Interest Surpasses Defense; Third-Highest Deficit Rate

Is the American economy truly a surefire success? Can they really be a country that is always profitable, regardless of the circumstances?

The answer is no!

The United States is currently facing a rare challenge in history, that is, the enormous debt of U.S. Treasury bonds and a significant deficit.

According to current fiscal conditions, it is predicted that the next U.S. government may lack funds, and the worst-case scenario is that the United States may go bankrupt.

Perhaps you think this is entirely alarmist and nonsense. Let's take a closer look at what has happened to the U.S. finances.

First, let's use official data to discuss the recent situation of U.S. finance.

On October 20th, the U.S. Department of the Treasury officially announced that the U.S. budget deficit for the fiscal year 2024 reached a staggering $1.833 trillion, setting a record high since the pandemic era and marking the third-highest deficit level in U.S. history!

$1.83 trillion is equivalent to about 13 trillion yuan in Chinese currency, and this figure has increased by 8% compared to the previous year. This growth rate can be said to be extremely astonishing.

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Why has there been such a rapid growth and why has it been continuously rising?

Some people jokingly say it's because of the hurricanes that swept through the United States before, leaving many families homeless. The Biden administration distributed $750 in disaster relief to each family to help them through the difficult times.For the U.S. government, would such a small amount of funding really be enough to collapse? In fact, this is just a phenomenon. In other words, through this inference, it can be deduced that the U.S. government's funding is indeed very limited.

Where has all their money gone? The first thing that comes to everyone's mind is war and military aid.

The U.S. constantly instigates local conflicts and provides financial assistance to the corresponding countries. It is known that tens of billions of dollars in military aid have been approved for Ukraine. Although it is not public for Israel, judging from the extent of the conflict, it is only more.

Do you think this is the main reason?

There is another point that can shock you: the interest on U.S. debt is 113.3 trillion dollars. The net interest expenditure on debt in the fiscal year of 2024 is 882 billion dollars, averaging about 2.4 billion dollars per day, accounting for 3.06% of the U.S. GDP.

The reason for such a huge amount is inseparable from the good deeds done by the Federal Reserve itself, raising interest rates! And this number is higher than the sum of the U.S. defense budget and the expenditure on the Medicare program for the elderly.

Such a high deficit and debt would have already declared bankruptcy for other countries. The United States has been fortunate to have lasted until now.

Perhaps the American people would never have thought that the decline in their quality of life in recent years was actually caused by their own country.

What is the United States like now?

The Federal Reserve has worked hard to raise interest rates, and the American people have tightened their belts to get by. In the end, the Biden administration has taken on a large amount of debt, almost emptying the funds, leaving the next government in a dilemma.The habit of borrowing money to live, prevalent from top to bottom in the United States, has caused the snowball to grow larger and larger. Unwittingly, it has transformed the country from one that is coveted by many into a place where even the quality of life is hard to guarantee.

Can lowering interest rates alleviate the United States' debt and deficit?