The U.S. national debt is growing at such a rate that soon the country will have to annual interest payments will surpass the defence budget, but Washington is not solving the problem, Bloomberg writes. Philip Swagel, head of the U.S. Congressional Budget Office, warned that the country is moving in a spiral of growing debt and increasing debt payments.
In early January, the U.S. national debt exceeded $34 trillion and continued to grow. The growth rate of the national debt is so high that soon the United States will have to spend more annually on debt interest payments than the country spends on national defence.
At the same time, as Bloomberg notes, Washington continues to sideline the problem. Despite countless complaints, warnings and promises to do something about it, Congress, which is in a deadlock, is finding it difficult to reach an agreement and cut federal budget spending.
Meanwhile, the outlook is disappointing. According to the U.S. Congressional Budget Office, annual interest on the debt will reach $1.4 trillion by fiscal 2033 and $5.4 trillion by fiscal 2053.
“We are now in a spiral – it’s a slow spiral, but it’s still a spiral – of rising debt and rising debt payments,” warned Philip Swagel, head of the department.