US National Debt Surpasses $34 Trillion, Prompting Warnings of Mounting Economic Pressure
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The US national debt recently surpassed a record-high $34 trillion, sparking warnings from a JPMorgan strategist of a "boiling frog" scenario for the economy.
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The strategist predicted that by early next decade, all federal revenue will go towards entitlement payments and interest on the debt.
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He warned that market pressure and rating agency downgrades may soon force changes to taxes and entitlements.
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The debt grew faster than expected due to increased pandemic spending and borrowing to stabilize the economy.
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Rising interest rates have made it more expensive for the government to service the mounting debt.