IMF Sounds Alarm Over US National Debt Insolvency
The astronomical rise in the US national debt poses significant risks to the global economy and threatens to continue fueling high inflation, according to a new warning from the International Monetary Fund.
In its latest Fiscal Monitor, the Washington-based institution said that it expects the U.S. to record a fiscal deficit of 7.1% in 2025 – more than triple the level in other economies.
"Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar," Vitor Gaspar, director of the IMF’s fiscal affairs department, told reporters. "It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks."
Under current policies, public debt in the US is projected to nearly double by 2040. If this trend continues, the Congressional Budget Office anticipates the national debt will grow to an astonishing $54 trillion in the next decade.
Should that debt materialize, it could risk America's economic stability in the world. America would become a third world country with out-of-control price inflation.
The US is one of four countries that needs to critically address fundamental imbalances between spending and revenue.
The US national debt topped $34 trillion in January after a burst of spending by the Biden regime and Congress and is well on its way to surpassing $35 trillion.
The massive amount of spending is igniting price inflation and is undermining financial stability worldwide by increasing global funding costs.
https://www.foxbusiness.com/economy/imf-sounds-alarm-ballooning-us-national-debt-something-will-have-give
