The Washington Post has reported that the unprecedented rise in US national debt has left the country’s lawmakers facing difficult and potentially unpopular decisions. According to the report, US national debt has now passed $40 trillion, and the continuation of this trend could affect wide parts of society.<\/p>\n
The newspaper said the US federal government has spent more than it has collected in tax revenue in consecutive years, with each annual deficit pushing public debt higher. The report also said the yield on 30-year Treasury bonds has climbed above 5.27%, adding to concerns about mounting financial pressure.<\/p>\n
Adam Abbas, who manages $4 billion in bonds for Oaktree funds, said the bond market is sending a message that the US will be forced to make choices that could harm economic growth. In his view, the two main options to rein in the situation are raising taxes or cutting spending, neither of which is politically popular.<\/p>\n
Mark Goldwin, senior policy director at the nonpartisan Committee for a Responsible Federal Budget, also warned that the US could be on the brink of a “real debt spiral.” He said this happens when the cost of servicing debt rises faster than economic growth.<\/p>\n
According to the report, the United States is currently paying nearly $1 trillion a year just in interest on the national debt. The Peterson Institute for International Economics has also said that if no reforms are made to government spending or taxation, the country’s debt could reach $50 trillion within six years.<\/p>\n
The Washington Post is one of the major newspapers in the United States, and the country’s national debt includes the total borrowing the federal government has accumulated to cover budget deficits. Treasury securities are also among the US government’s main borrowing instruments.<\/p>\n","protected":false},"excerpt":{"rendered":"
US national debt has topped $40 trillion, raising concerns over higher taxes, spending cuts and a possible debt spiral.<\/p>\n","protected":false},"author":2,"featured_media":20151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,17],"tags":[],"class_list":["post-20152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-important-news"],"_links":{"self":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/posts\/20152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/comments?post=20152"}],"version-history":[{"count":0,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/posts\/20152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/media\/20151"}],"wp:attachment":[{"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/media?parent=20152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/categories?post=20152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/atlaspress.news\/en\/wp-json\/wp\/v2\/tags?post=20152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}