America’s Debt is Walking Towards a Cliff….

Avearge American doesn’t know of care about Government debt….

Just their OWN…

But?

The Government’s DOES have an influenec of us average Americans….

The stock market and the rich are doing fine….

But the ‘expert’ who Trump & Co. do NOT listen do ARE sounding a warnng bells….

 

The United States is rapidly accelerating toward a definitive tipping point in its financial history, the Committee for a Responsible Federal Budget (CRFB) wrote in response to the latest 10-year outlook from the Congressional Budget Office. The nonpartisan budget watchdog issued a stark assessment: The current trajectory of borrowing, which is running at double the 50-year historical average, is simply mathematically unsustainable.

The CRFB cautioned that without immediate legislative intervention, the federal government faces a future defined by exploding interest costs, insolvent trust funds, and a national debt burden that will shatter post–World War II records within four years.

It amounts to a report card for the Trump administration’s first year back in office—potentially its last truly impactful year of President Donald Trump’s term, if midterm elections swing either or both of the House and Senate to Democrats. The CBO updated its projections to account for the One Big Beautiful Bill Act (OBBBA), Trump’s tariff regime, changes in immigration, and other factors. “With debt approaching record levels, interest costs exploding, trust funds approaching insolvency, and deficits expected to remain more than twice as large as the oft-discussed 3% of GDP target,” the CRFB argued, “lawmakers should come together to enact significant deficit reduction.”…

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The looming debt spiral

The most alarming aspect of the new outlook is the compounding danger of high interest rates interacting with high debt—the mechanics of what the CRFB calls a “debt spiral.” The CRFB warns that later in the decade, the average interest rate on all federal debt is projected to exceed the rate of nominal economic growth. Economists refer to this dynamic as “R>G” (rate > growth). When the cost of servicing past debt grows faster than the economy that supports it, debt accumulation becomes self-perpetuating, making a fiscal crisis increasingly likely….

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The path forward

In their concluding assessment, the CRFB urged lawmakers to abandon the recent trend of adding to the debt and instead work to stabilize the nation’s finances. With debt approaching record levels and deficits remaining more than twice the size of the “oft-discussed 3% of GDP target,” the group argues that significant deficit reduction is no longer optional.

The group suggests the necessary adjustments to spending and revenue could be achieved through regular legislative order or a bipartisan fiscal commission. However, the window for gradual adjustment is closing. As the CBO data indicates, with the arrival of “R>G” and the looming exhaustion of trust funds, the U.S. is running out of time to avert a fiscal collision that has been decades in the making….

More…

Note….

Trump’s quick fixes and import taxes and maybe ‘sugar high’s ‘ that will hurt as Trtump leaves the stage for the enxt President as Obama had after Bush II….