U.S. Total Public Debt Outstanding rose from $32.65 trillion on June 27 to $32.26 trillion on July 27 of the same year, a rise of approximately $392.75 billion.
The Federal Reserve Bank of St. Louis revealed that quarterly interest payments for the United States were approaching $1 trillion, as reported by The Daily Hodl.
According to the story, a libertarian think organisation called the Cato Institute has issued a dire warning in light of the current financial climate. They worry that a deterioration in the economy and a possible fiscal catastrophe might result from the government’s continued failure to execute reasonable fiscal measures in the face of rising federal debt.
The Cato Institute adds that the United States’ international position may suffer if the economy were to weaken and overseas bondholders were more worried about the U.S. government’s capacity to fulfil its debt. Some people worry that the United States’ large and growing debt would discourage private investment, lower earnings, and make a sudden fiscal catastrophe more likely.
The Institute also stresses the immediate need for entitlement reform. Half of the government budget goes to needs-based programs like Social Security, Medicare, Medicaid, and so on, while the other half goes to defence. To address entitlement reform, the Cato Institute suggests establishing a debt commission. They argue that the President’s signature should be all that’s needed for the commission’s recommendations to become law.
The Cato Institute warns that America’s economic and military power are at risk due to the country’s unsustainable budgetary policies. They claim that lawmakers can keep excessive debt from threatening America’s economy and security by enacting reforms to entitlement programs and cutting expenditures. They think Congress can do more by forming a debt panel.
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