The Americans are still impressive! 36 trillion in US debt, about to explode! 80% is in the hands of Wall Street financial giants! Since external solutions cannot resolve the problem, let's solve it internally!
The continuous expansion of US national debt has far exceeded its GDP growth rate. For example, last year, GDP grew by about 2.1%, while national debt increased by about 8%. Such a high level of debt has made interest payments a heavy burden, with annual interest payments amounting to hundreds of billions of dollars, accounting for a significant proportion of fiscal expenditure.
A large amount of national debt is concentrated on Wall Street, and any sign of default risk could trigger severe shocks in the financial market. Similar to the 2008 subprime mortgage crisis, the chain reaction in the financial market almost dragged down the global economy.
Resolving it internally may mean cutting welfare spending, but this would encounter strong opposition from the public. Polls show that over 60% of the public oppose cutting healthcare and other welfare.
Alternatively, tax rates could be raised, but this would dampen corporate enthusiasm. Historical data indicates that during periods of significantly increased tax rates, corporate investment enthusiasm declines noticeably.
The US may also attempt to promote rapid economic growth to dilute the debt, but achieving high growth under the current global economic environment is extremely challenging. The average growth rate over the past five years has hovered only between 1.5% - 2%.
I believe that the US debt problem is deeply entrenched, and any internal solution faces numerous difficulties and challenges. Its future economic direction is full of uncertainty and may have far-reaching negative impacts on the global economic landscape.