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America\u2019s national debt is rising at a rapid rate.<\/p>\n
The government\u2019s FiscalData platform shows<\/a> $116 billion has been added to the country\u2019s total public debt since the start of August, bringing the grand total to $32.7 trillion.<\/p>\n The rise comes amid a fresh fiscal warning from the Heritage Foundation.<\/p>\n The conservative think tank\u2019s EJ Antoni says<\/a> that the soaring debt, along with its recent ratings downgrade<\/a> from Fitch, should not be ignored.<\/p>\n \u201cThe downgrade by Fitch is not a big move in terms of overall rating, but it is significant. The drop from AAA to AA+ is still firmly in investment-grade territory, meaning the odds of default in the near term are still extremely unlikely, but it should not be ignored.<\/em><\/p>\n Debt is downgraded because the borrower is waving red flags. In the case of the U.S., we have over $32 trillion in debt and are currently adding trillions per year. Total annual interest payments alone on that much debt costs us about $1 trillion\u2014more than the entire Defense budget\u2014and spending keeps growing. That is a recipe for insolvency and eventual default.\u201d<\/em><\/p>\n Antoni says Congressional action is needed to revamp America\u2019s budget and avoid reaching a breaking point.<\/p>\n \u201cCongress and the White House need to immediately get their financial house in order. If they don\u2019t, we\u2019ll be right back on the inflation roller coaster with more hidden defaults on U.S. debt. <\/em><\/p>\n That will mean even higher yields, which leads to higher interest payments, which means even faster growing debt, and so on\u2014a veritable death spiral. Time is running out before we reach the point of no return.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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