The US national debt has just exploded by a whopping $684 billion in just three months! That’s right, the amount of money America owes has skyrocketed, reaching a staggering $35.3 trillion. This comes just a month after the debt crossed the $35 trillion mark.
Fitch Sounds the Alarm
Fitch, a major credit rating agency, is warning that America’s debt problem is getting out of hand. While they still give the US a good rating, they’re worried about the huge deficits, rising interest payments, and the growing debt burden. They say America needs to take serious action to address these issues, especially with an aging population that will require more government spending in the future.
The Dollar’s Edge
Fitch acknowledges that the US has a big advantage because the dollar is the world’s reserve currency. But they warn that this advantage could disappear if the US keeps relying on debt to pay its bills. If investors start losing faith in the US and the dollar, it could lead to economic shocks and instability.
What’s Next?
The US needs to find a way to get its finances in order. If it doesn’t, the consequences could be serious. The government needs to find ways to reduce spending, increase revenue, or both. Otherwise, the debt will continue to grow, and the US economy could face serious challenges.
