US Will Collapse From Debt and Internal Losses
WASHINGTON – November 28, 2018
Debt and military issues are pushing the US to death, and we can talk about a coming crisis not only for the country but also for the whole world.
American debt is growing, and the turning point will come, American Conservative, the author of which also characterizes the policy of wars as unnatural, reports.
Leading experts predict a crisis in America. At the same time, it is not only about the state debt of the country but also about the policy of illegal wars waged by the United States. The consequences will be unpredictable.
"All undeclared wars are illegal, counterintuitive, and destabilizing to foreign regions, they’re financially destabilizing for American society as well," the article says.
The US' national debt is approaching $22 trillion with a current federal budget deficit of over $800 billion. As Senator Rand Paul often points out, bankruptcy is the Sword of Damocles hanging perilously close to Uncle Sam's neck. Outside of a handful of libertarian gadflies in Congress such as Paul, there is no serious political movement to curb the country's wayward spending. It would take some upset of multiple times greater magnitude than Donald Trump's 2016 victory to alter this course.
At the same time, the article's author calls the country's expenses capricious or dissolute.
The crisis in America will "certainly" come, despite the fact that there are a lot of poorer countries based on an assessment of the ratio of debt to GDP. The United States has the greatest debt, and the tipping point will come.
But not all economists hold this opinion. A number of experts believe that the US bankruptcy is impossible. They explain their position by the fact that technically it is possible to "print" the necessary amount of dollars to repay all debts, but then the US currency will depreciate in the world economy.
If public debt rates become "unbearably high," Washington will have to cut the budget significantly. American neoconservatives believe that this can limit the armed forces.
"When the world loses confidence in the American government’s ability to pay its debt, or the interest rate on our debt becomes unsustainably high, choices will have to be made," the article says. "No more kicking the can down the road, no more 10-year projections to balance the budget. Congress, in a state of emergency, will have to take a buzzsaw to appropriations. And the empire will be the first thing to go."
The US needs to reassess foreign assets and liabilities, and in foreign policy it is necessary to consider national interests from limited strategic positions, to close bases in Germany and to withdraw the US military from Afghanistan, the article adds.
The Foreign States owned In September 2018, foreign states owned $6.223 trillion in US securities.
The largest holder of US Treasury obligations, China, continued to reduce its investment. At the end of September, the figures decreased by $13.7 billion to $1.151 trillion.
"Our leaders ignore Stein’s Law at their own peril. No matter what, U.S. troops are coming home. Better it be our decision than the debt collectors," the article concludes.