[World Says] Foreign media: The U.S. debt "snowball" is getting bigger and bigger, and the two parties are fighting and ignoring the risks of debt growth
China Daily, June 28: The current political polarization in the United States has led to an increasingly stalemate between the two parties over the debt ceiling. For political reasons, both parties are unwilling to "put on the brakes", allowing the US debt to go on an unsustainable track, causing widespread concern in the international community.
The Wall Street Journal website reported on the 21st that U.S. debt has been growing at an alarming rate and will be roughly equal to its GDP this year. It is expected to reach a record 106% by 2028. By 2034, if there is no change in tax and spending policies, it is expected to reach a record 122%. The article said, "This deficit may have painful consequences... Throughout history, countries that have recklessly accumulated debt have ultimately suffered an unfortunate end."
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According to previous forecasts by the Congressional Budget Office, the US deficit will increase significantly, and is expected to reach $1.915 trillion in fiscal year 2024 and $1.938 trillion in 2025. Barry Bosworth, a senior fellow at the Brookings Institution, said the latest deficit forecast is "evidence of the collapse of the US budget system." He believes that a larger proportion of public spending will be used to repay debts, squeezing out spending on other public projects, and that growing public debt may also lead to reduced private investment. In addition, soaring debt will increase foreign capital's control over the US economy.
The Peter Peterson Foundation of the United States said in a statement recently that the latest report shows that the U.S. finances are on an unsustainable track. If not addressed, the structural mismatch between federal government spending and revenue, as well as rising interest rates and borrowing costs, will pose challenges to the federal budget, the U.S. economy and future development.
![[World Says] Foreign media: The U.S. debt "snowball" is getting bigger and bigger, and the two parties are fighting and ignoring the risks of debt growth](https://a5qu.com/upload/images/e4a36544072a7a9e8e767fb44cc5bb37.webp)
The Washington Post recently published a commentary that the two parties are to blame for the out-of-control US debt. During the terms of Trump and Biden, fiscal spending increased significantly. Both parties knew that the United States was in a budget dilemma, but they were unwilling to introduce practical policies to cut spending and control debt, which made the US debt problem worse.
According to a recent report by Reuters, Gennady Goldberg, head of U.S. interest rate strategy at TD Securities, said that the debt ceiling deadlock that may occur in the United States next year may be one of the most serious deadlocks since the U.S. debt ceiling crisis in 2011, or may lead to another downgrade of the U.S. sovereign credit rating.
![[World Says] Foreign media: The U.S. debt "snowball" is getting bigger and bigger, and the two parties are fighting and ignoring the risks of debt growth](https://a5qu.com/upload/images/921d75e0a78ab461fa76c51f96c8a29b.webp)
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