Behind the record high US national debt

In this era of global financial change, one number is climbing at an alarming rate, seemingly through the sky: the total national debt of the United States. Recently, this number has once again hit a record, which has strained the nerves of countless economists, investors and even ordinary people to the limit. What lies behind the new record of US national debt? Is it the inevitable outcome of an economic boom or a bottomless financial orgy?

First, let's unravel the mystery of this "behemoth." The US national debt, as a bond issued by the US government to raise funds, has been rising in total, undoubtedly reflecting the increasingly serious fiscal deficit of the US government. In other words, the U.S. government is spending money far faster than it can make money. This, if not because of some "force majeure", is a complete fiscal runaway.

So what caused this fiscal runaway? The answer may not be complicated, but it's enough to be jaw-dropping. On the one hand, in order to stimulate the economy and increase employment, the US government has continuously introduced various fiscal stimulus programs. Although these plans may bring a certain economic growth effect in the short term, in the long run, it is like injecting a dose of "stimulant" into the economic system, so that government finances are trapped in a vicious circle. On the other hand, the US military expenditure, social welfare expenditure and other rigid expenditures continue to grow, making the government's financial pressure increasingly increasing. In this context, increasing the issuance of national debt has become the "only way" for the US government to solve its financial problems.

However, this seemingly simple solution hides a huge risk. First, the rise in the total national debt means that the US government will be under increasing pressure to repay its debts in the future. When the economy wobbles or investors doubt the creditworthiness of the U.S. government, the Treasury bond market could become volatile, triggering a financial crisis. Secondly, the rise in the total national debt has also intensified the risk of global financial markets. As one of the most important safe-haven assets in the world, the price movement of US Treasuries has a profound impact on global financial markets. Any trouble in the U.S. Treasury market could ripple through global financial markets.

But it is puzzling that, in the face of such grave risks, the US government does not seem to show the concern and urgency it should. On the contrary, some politicians and officials continue to promote absurd claims such as "U.S. Treasury bonds are the safest investment in the world." Rather than hiding the grim reality of the US fiscal situation, such self-deception risks further eroding investor and public trust in the US government.

It is even more ironic that the US government seems to be happily playing the game of "borrowing the new and paying the old". They keep the Treasury market going by issuing new bonds to pay off maturing ones. Although this approach may have avoided the collapse of the Treasury bond market in the short term, in the long run, it is like drinking poison to quench thirst, and will only worsen the fiscal situation of the US government.

The American people are also the innocent victims of this bottomless financial orgy. They not only have to bear the tax pressure caused by the rise of the total national debt, but also face the financial risk that may be caused by the volatility of the national debt market. More importantly, this uncontrolled fiscal situation has seriously damaged the credibility of the U.S. government and its international image. If the US government cannot take effective measures to curb the rise of the total national debt, then the future of the United States may fall into an unprecedented financial crisis.

Overall, behind the new record US national debt is a bottomless financial binge. This orgy has not only put the U.S. government in a quagmire of fiscal runaway, but also exposed global financial markets and investors to unprecedented risks. Neither the US government, investors nor ordinary people will be immune from this disaster.