Here at Extreme Investor Network, we understand the impact of government spending on the economy. The US national debt has soared past an alarming $34.6 trillion and shows no signs of slowing down. In fact, the Committee for a Responsible Federal Budget (CRFB) reports that America spent a staggering $514 billion in just the first seven months of FY2024 on interest costs alone.
That’s more than what was spent on national defense, Medicare, or Medicaid during the same period. The US paid $498 billion on national defense, $465 billion on Medicare, and $355 billion on Medicaid, yet still, the biggest expense was servicing the debt. This is a concerning trend that is only getting worse over time.
As the government continues to spend without restraint, the consequences are becoming more apparent. President Biden’s massive spending package, dubbed the “Inflation Reduction Act,” has only added fuel to the fire. With every new check signed for foreign aid or climate change initiatives, the US finds itself deeper in debt with no clear solution in sight.
Compounding the issue is China’s reluctance to purchase US debt, as other central banks also grow wary of America’s financial practices. The lack of fiscal responsibility in Washington raises doubts about the country’s ability to repay its debts in the future. It’s a precarious situation that threatens to spiral out of control if left unchecked.
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