US National Debt Rises by $116 Billion in August; Heritage Foundation Cautions on Approaching Critical Threshold
U.S. National Debt Experiencing Rapid Increase
The U.S. government's FiscalData platform reveals an addition of $116 billion to the national debt since August, pushing the total to $32.7 trillion. This alarming increase prompted the Heritage Foundation to sound the alarm. EJ Antoni from the conservative institution emphasized the gravity of the recent Fitch ratings downgrade, even though it remains within the investment-grade.
"The shift from AAA to AA+ might seem minor, but its implications are noteworthy. While a near-term default remains unlikely, overlooking the downgrade is risky. The U.S., already burdened with over $32 trillion in debt, continues to accumulate trillions annually. With annual interest payments nearing $1 trillion—surpassing the Defense budget—it's a potential path to insolvency," warns Antoni.
Highlighting the urgent need for Congressional intervention, Antoni advocates for a restructuring of the U.S. budget to prevent a catastrophic fiscal scenario. He adds, "Immediate action from Congress and the White House is pivotal. Inaction could plunge us into a vicious cycle of escalating inflation, rising yields, and accelerated debt accumulation. We're dangerously close to an irreversible financial precipice.
Aug 20, 2023