America's Ballooning Debt Burden Sounds Alarm Bells on Fiscal Reckoning
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America's national debt is over $34 trillion and rising rapidly. Soon the U.S. will spend more annually on interest payments than on national defense.
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Higher interest rates mean the government has to pay more to service its massive debt, fueling a debt spiral.
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The debt situation is unsustainable long-term but there is little political will in Washington to balance the budget.
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In the 1990s, investors revolted against unsustainable spending, forcing policy changes. Markets could apply pressure again.
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If the debt continues unchecked, the U.S. dollar and economy could be severely damaged. The debt spiral must be addressed to avoid crisis.