The Kremlin spokesperson, Dmitry Peskov, stated that the United States national debt has risen to such astronomical levels that Washington will soon be unable to print any more dollars to service it. Peskov’s comment comes in response to a statement made by his US counterpart John Kirby, who revealed that 96% of the funds allocated for Ukraine since early 2022 have been spent due to the escalating tensions and armed conflict with neighbor Russia.
When a reporter suggested that Washington could simply continue to print money indefinitely, Peskov emphasized that there will eventually be no paper left. With the US outstanding public debt currently amounting to roughly $33.6 trillion, the debt ceiling was exceeded in January after reaching $31.4 trillion.
The Congressional Budget Office (CBO) reported that interest payments on the national debt reached $475 billion in fiscal year 2022, equivalent to about $1.3 billion per day and approximately $54.2 million per hour. With the federal government’s borrowing costs rapidly increasing due to a series of interest-rate hikes, the CBO has warned that these costs will continue to grow.
The CBO further cautioned that within the next 30 years, servicing the national debt will become the largest expenditure in the federal budget, surpassing even healthcare and social security. It is projected that the US debt will exceed $50 trillion, according to a report by Bank of America.
With the exponential growth of the national debt and the soaring costs of servicing it, the United States will need to urgently address its fiscal policies and debt management in order to avoid a potentially catastrophic financial crisis. Failure to do so could lead to severe consequences for the US economy and the global financial system as a whole.
The mounting debt crisis highlights the importance of prudent fiscal governance and responsible economic policies to ensure sustainable growth and stability. In the face of these challenges, policymakers will need to explore effective strategies to reign in the national debt and mitigate the risks associated with its continued escalation.
As the United States grapples with the ramifications of its surging national debt, all eyes will be on Washington as it seeks to navigate a path towards fiscal sustainability and safeguard the long-term economic well-being of the nation. Given the far-reaching implications of the debt crisis, the urgency of addressing these issues cannot be overstated.