Sadly, as we get set to cross the threshold of $20.0 trillion in official U.S. national debt, there’s been very little talk about it in the media or from politicians. Truth be told, if not controlled, it could be the factor that breaks the back of the U.S. dollar and results in a U.S. economic collapse.
Donald Trump has a history of racking up debt in his business dealings. With promises of tax cuts for the middle class and major beefing up of our military (so we are No. 1 again), I see our debt rising quickly under a possible Trump Administration.
Under Hillary Clinton, given what I hear about social programs and help for the poor from her campaigning, U.S. national debt would continue to skyrocket under her administration, too.
Hence, we are dealing with two presidential candidates who I believe will bolster U.S. national debt.
As it stands, the U.S. national debt is $19.2 trillion. (Source: “The Daily History of the Debt Results,” TreasuryDirect, last accessed May 11, 2016.)
The chart below gives a quick visual on what has happened to U.S. national debt over the years. Looking at this chart, it’s easy to see that the U.S. national debt started to surge after the credit crisis in 2008.
For the first seven months of the federal government’s fiscal year that began in October 2015, the U.S. government has already overspent by $354.6 billion! (Source: “Monthly Treasury Statement,” U.S. Treasury Bureau of the Fiscal Services, last accessed May 11, 2016.) With a few more months left until the end of the year, don’t be shocked if we see this year’s deficit come in at more than $500 billion.
And here’s the kicker: according to the most recent projections by the Congressional Budget Office (CBO), for the next 10 years, the U.S. government is only expected to incur budget deficits. In total, these deficits are expected to hit $9.28 trillion. (Source: “10-Year Budget Projections,” Congressional Budget Office, last accessed May 11, 2016.)
So, if we assume that’s the actual final number (and there are no more wars, recessions, state bailouts, student loan catastrophes, or natural disasters), by the government’s own estimate, we are headed to a national debt of $30.0 trillion. My original prediction of a $34.0-trillion U.S. national debt by the middle of the next decade (that’s twice our current gross domestic product) looks like it’s coming true.
Here’s Why We Could See the U.S. Dollar Collapse and U.S. Economy Suffer
If you look back in history, countries that have experienced skyrocketing national debt have collapsed alongside their currencies.
When it comes to nominal value, the U.S. has the biggest national debt on its books of any country in the world. It will take time, but staggering national debt is going to hurt the greenback like Britain’s addiction to debt destroyed the pound.