I feel like the United States is always meddling in other countries affairs and yet still climbing further into debt. Kind of like someone giving you advice on a golf course who is terrible themself. Is it the military presence? Economic relationships?
In: Economics
There are several reasons why, ranging from decades of geopolitical footholds, *budgeting* smoke & mirrors, and property owned.
The US has accumulated a TON of assets over the years including; land, property, other countries debt, people (human capital), natural resources, etc. This acts as collateral on debt the US wants to take out to operate or invest in whatever scheme politicians think up.
The National debt (money borrowed) is absolutely an issue. Since the US defecit has significantly increased trillions of dollars the last few years, the US is regularly challenged to move around it’s assets to cover it’s debts. This is done generally by increasing tax revenue, selling assets, and barrowing more money (aka T-bills/bonds).
In the past countries like China would buy vast amounts of T-bills, this was common during both Bush and Obama’s admins, due to the recession. However, now China has threatened to not buy anymore US debt. This has become part of their leverage as a result of the trade war the current administration has brought on the country (in addition to the trillions already lost in trade and GDP). Other countries can buy the US debt, but the amount needed can’t be supported by most other countries, especially if the world is heading into a depression.
Therefore, the possibility of the US defaulting is gradually increasing.
Pretty sure a similar situation happened to Greece or Italy back in the 70’s or 80’s.
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