Donald Trump is back in the spotlight, this time targeting the US national debt rather than cryptocurrencies. The billionaire claims he will swiftly reduce the country's debt once he is in office.
Trump and his administration plan to trim the federal debt by using the nation's emergency oil stockpile, though a detailed strategy has yet to be disclosed.
Notably, the US national debt currently stands at $35 trillion, increasing by about $1 trillion every 100 days. This year, federal spending on servicing the government debt has eclipsed military spending for the first time. Economist Les Rubin suggests that the Biden administration will likely have to continue its current policy of selling US Treasury securities. However, such a high level of debt raises concerns about the country’s ability to manage interest payments in the future. In 2023, demand for US government bonds saw a significant drop.
According to analysts at the International Monetary Fund, an escalating debt burden poses a threat to both the global and US economies. Despite these challenges, US officials continue to describe the national economy as strong, vibrant, and adaptive.