The Increasing National Debt of the USA and Its Impact on National Security

At Miracle Cash and More, we have compiled recent developments regarding the economy and global security issues. In this article, you can also follow how these developments might affect our real-world asset and web3-based projects realized with Phoenic Token. The rapidly increasing national debt of the USA is becoming a growing concern for economists and politicians. According to new data from the Treasury Department, from January 2 to July 2 of this year, the country's foreign debt rose from $33.990 trillion to $34.866 trillion. This means an increase of over $876 billion in just six months.

Pompeo's Warning: Debt as a Threat to National Security

Pompeo, writing for the Washington-based non-profit American Center for Law and Justice (ACLJ), stated that the country's swelling debt now poses a threat to national security. Citing data from the bipartisan federal agency, the Congressional Budget Office (CBO), Pompeo indicated that the budget deficit for the fiscal year 2024 is expected to reach $2 trillion. This figure is $300 billion more than last year's deficit of $1.7 trillion.

Economic Impacts of the Debt

Pompeo pointed out that last year the national debt equaled 97.3% of the national income, and within a decade, the CBO now estimates it will rise to 122%. This implies that the country's debt will exceed the total wealth that the world's largest, most dynamic, and most powerful economy can generate.

The Decline of the Dollar and the Global Economy

The former Secretary of State believes that the country's record-high debt level is likely to lead to a devaluation of the dollar and increased influence of US rivals on the global stage. Pompeo warned that sustained high debt, interest rates, and inflation could weaken the value of the US dollar in the long run. This scenario would be a disastrous outcome sought by America's adversaries in Beijing, Moscow, and Tehran, aiming to shift the global economy away from the US.

The Federal Government's Responsibility

Pompeo emphasized that no business or country, regardless of its size, is immune to the fatal effects of operating with deficits. He stated that no business running on debt can succeed, criticizing the federal government for ignoring this critical truth. Pompeo stressed the need to recognize the threat posed by America's growing national debt to our future; otherwise, it might be too late.