As the U.S. national debt approaches $36 trillion, the negative impacts are becoming more severe. A skyrocketing debt increases interest payments, which drain government resources that could otherwise fund essential services like healthcare, infrastructure, and education. It also undermines confidence in the U.S. dollar, potentially leading to higher inflation and rising interest rates. This can slow economic growth, making borrowing more expensive for both businesses and individuals. If left unchecked, the growing debt could limit future economic opportunities, weaken the nation’s financial stability, and burden future generations with unsustainable fiscal challenges.
Additionally, rising national debt can contribute to inflation in several ways. When the government borrows large amounts of money, it may increase the money supply, especially if it relies on the central bank to finance the debt. This can lead to more dollars chasing the same amount of goods and services, driving prices up. Additionally, as debt grows, investors may demand higher interest rates on government bonds to compensate for the increased risk, which raises borrowing costs across the economy. Higher borrowing costs can slow investment and productivity, making goods and services more expensive, and further contributing to inflation. Lastly, if the government resorts to printing more money to manage its debt, it can devalue the currency, causing prices to rise even faster.
Yeah – we’re screwed as every 100 days give or take the debt grows another trillion.
Add this to everything else going on and you better keep prepping!
Take care all –
Rourke
John, I’m just waiting for all those we owe our debt too to all show up at the doorstep waiving those I O I’d and then the rioting really begins.