Financial experts express their concern that the economic situation in the United States would scar American citizens for generations to come.
The United States witnessed on Monday its gross national debt surpassing the milestone of $33 trillion for the first time in the country’s history, serving as a clear indicator of the nation’s shaky financial situation.
Just three months ago, the United States reached its previous record-high debt level of $32 trillion. This occurred shortly after President Joe Biden signed legislation to uncap Washington’s debt ceiling previously set at $31.4 trillion, thereby preventing a potentially catastrophic American debt default.
Washington is currently facing a similar financial standoff as the government expenditure budget is set to expire by the end of September amid yet another bipartisan clash over federal spending.
Commenting on the event, US Treasury Secretary Janet Yellen said President Joe Biden is attending to the issue through a series of proposed measures aiming to balance spending and increase cash flow into the economy.
“Certainly greater deficit reduction is possible,” Yellen told American media outlets. “The president has proposed a series of measures that would reduce our deficits over time while investing in the economy and this is something we need to do going forward.”
“We have to make sure that we do keep deficits under control going out,” she added. “The statistic or metric that I look at most often to judge the fiscal, our fiscal course is net interest as a share of GDP [gross domestic product]. And even with the rise we’ve seen in interest rates, that remains at a very reasonable level of around 1%, but we’d need to be careful about what we do going forward in order to make sure we stay on this sustainable course.”
However, her reassurances found little agreement among experts who argue that the economic conditions are poised to have a lasting generational adverse effect, with no signs of abating as both inflation and Federal Reserve rates continue their upward trajectory.
Source: Almayadeen