(AmericanProsperity.com) – The US government’s budget runs at a deficit this year and has every year for the past decade. Our rising national debt is not new, however, it topped $26 trillion on June 9, according to the US Department of Treasury. In unprecedented spending, the last $2 trillion of debt was added recently: $1 trillion in April and another trillion in May.
It took the nation 210 years to run the National Debt up to $2 trillion. It took exactly 2 months and 2 days to add the most recent $2 trillion. The National Debt just passed $26 trillion, and the Fed has given Congress the green light to keep borrowing, as it will keep printing.
— Peter Schiff (@PeterSchiff) June 10, 2020
This staggering number poses risks for the future health of the US economy and its place as the leader of the free world. Interest is ever-increasing on the debt, leading to higher interest rates for borrowers at both corporate and personal levels, especially with mortgages. For future generations, this could mean scarcer job opportunities with lower salaries and higher taxes.
Owners of American debt are key players in how the payments are requested. China owns over $1 trillion of American debt and has outstanding claims greater than 5% of the world’s GDP. This gives communist China undesired power over its debtors. However, Trump has been slowly decreasing the amount owed to China over the past year, helping us loosen China’s potential grip on our economy.
To ensure a prosperous future for our children and continued freedom for America, it’s vital to address National debt, who holds it, and how to make a budget without a deficit in the coming years.
~Here’s to Your Prosperity!
Copyright 2020, AmericanProsperity.com