With record-breaking numbers of illegal immigrants pouring across the border, near-record inflation, and his May 2023 approval rating dropping lower than any other first-term president in U.S. history, President Joe Biden has once again achieved a historical landmark: the highest national debt ever seen in the United States.
National debt began to climb in the 1980s, holding at $907 billion and slowly increasing over four decades. But the Biden administration has pushed the nation to achieve the unthinkable. In a dream-come-true for Democrats, the national debt stands at an unprecedented $33 trillion.
For those wondering what that number looks like in numeric form, here it is: $ 33,000,000,000,000.
The historic national debt includes an equally historic public debt of $26 trillion, along with a debt in Treasury securities, like Social Security and U.S. pension funds, of $7 trillion.
The administrative spending spree, spurred on by unpopular liberal policies and Biden’s authoritative executive orders, includes such classics as student loan bailouts, climate change “solutions,” and foreign aid. If someone doesn’t cut up Biden’s credit card soon, the United States faces unprecedented economic repercussions.
Biden personally authorized an increase of $1 trillion in just five weeks following the June debt-ceiling showdown. The president eagerly inked a bill that essentially hits the snooze button on the debt ceiling until 2025, and he wasted no time in taking advantage of the opportunity to spend like a drunken sailor on leave.
Treasury Department records reveal that as of July 6, the nation’s total debt had ballooned to $32.47 trillion. This marks a hefty $1 trillion increase from the $31.47 trillion recorded on June 2. Prior to this spike, the national debt had been stagnant, lingering around the June 2 figure for an extended period because the government had reached its borrowing limit, rendering it legally unable to secure additional funds.
However, the situation took a sharp turn on June 3 when President Biden put pen to paper on legislation resulting from negotiations with House Republicans. This legislation mandated a minor spending reduction in the coming year while granting the federal government a free pass on borrowing until 2025.
With no debt ceiling constraints in play, federal borrowing shot up by over $350 billion in just a single day, and the national debt swiftly cruised past the $32 trillion mark in under two weeks.
The Biden administration continues to blame Republicans for the escalating and disastrous debt. Michael Kukukawa, White House assistant press secretary, explains, “The increase in debt over the last 20 years was overwhelmingly driven by the trillions spent on Republican tax cuts skewed to the wealthy and big corporations.”
Congressional Republicans see things a little differently, arguing that the current administration’s out-of-control spending is spelling financial doom for America. According to the Congressional Budget Office (CBO), the annual net interest costs alone will reach $663 billion in 2023. Over the next decade, these interest costs are expected to nearly double, going from $745 billion in 2024 to a whopping $1.4 trillion in 2033. This means a staggering $10.6 trillion in interest payments over the next decade.
But Treasury Secretary Janet Yellen claims that the interest payments on this mountain of debt are perfectly acceptable because they’re at a “very reasonable level of around 1%.” It’s almost like saying, “I maxed out my credit card, but don’t worry, the interest rate is great!”
The United States’ soaring national debt level carries significant global implications. Biden’s out-of-control national debt can impact global financial stability, with a U.S. debt crisis potentially causing worldwide economic disruptions. The nation’s borrowing needs also influence global interest rates, affecting borrowing costs for countries and individuals globally. Additionally, the U.S.’s role in international trade, its geopolitical influence, and its ability to drive global economic growth are all influenced by its fiscal health and debt management.
Meanwhile, concerns about the debt’s sustainability can lead to fluctuations in the U.S. dollar’s value, influencing exchange rates and trade balances worldwide. Confidence in the U.S. economy and fiscal policies, closely linked to the national debt, can impact foreign investment in the U.S. and international economic cooperation. Ultimately, the status of the U.S. dollar as the primary reserve currency may be challenged if confidence in it wanes due to concerns about excessive debt.
With a debt big enough to have its own gravitational pull, Biden seems determined to keep the financial pedal to the metal. He’s following the “Buy Now, Worry Later” economics handbook, and the only one who might find a sweet ending to his disastrous economic policies is him—savoring his post-presidency ice cream while the rest of America grapples with the fallout from his uncontrolled spending spree.