National Interest called the main enemy of the USA
MOSCOW, may 1 — RIA Novosti. The main enemy of the USA is not Russia or China, and us debt, writes the National Interest. The magazine reports that Washington is getting closer to a technical default.
So, the latest data of the office of congressional budget shows that the interest burden of the U.S. is 1.6 percent of GDP, which is equal to 9.4 percent of Federal revenue. However, in 2022, these figures will amount to 2.7 percent and 16 percent respectively. The author calls this scenario the most optimistic.
As writes the edition, based on the last weeks interest burden of Washington may reach 20 percent of Federal revenue, which means that Americans will pay to debt repayment every fifth dollar.
There are two options to resolve the situation: reductions in mandatory spending or increase tax revenues. However, both methods will be blocked by Congress.
The journal notes that the only way to keep social spending is ignoring the deficit and debt. In this case, best-case scenario the deficit will increase by 30 percent from 2019 to 2023 while maintaining a defensive and social costs. And from 2018 to 2028, the deficit could increase by 81 percent.
According to the publication, Washington is likely to resort to debt restructuring, with Japanese and Chinese lenders, which have about 1.2 trillion dollars of us bonds.
In March 2018, the U.S. national debt has reached a historic high at 21 trillion dollars. The mark of 20 trillion, it topped in September last year. In particular, the American national debt has increased by almost two times in the eight years of the presidency of Barack Obama.