The Washington Examiner reported on Monday that under President Joe Biden, America’s national debt is now double China’s entire gross domestic product.
That unnerving news comes as the U.S. Treasury Department released figures this week showing the debt has climbed to $30 trillion, a first in the nation’s history.
Analyst says China stands to gain from high debt levels
Michael Peterson serves as CEO of the Peter G. Peterson Foundation, an organization that seeks to keep Americans informed about rising debt levels.
“The milestone of $30 trillion in debt should be a giant red flag for all of us about America’s future economic health, generational equity, and role in the world,” Peterson was quoted as saying.
He went on to list some of the ways that mounting financial obligations will put the United States in a precarious position.
“Our high and rising debt makes us less prepared for the next pandemic, less secure against future adversaries, less resilient to the changing climate, and less able to build the strong and inclusive economy that we all want for the next generation,” Peterson explained.
Meanwhile, David Kelly works as chief global strategist at JPMorgan Asset Management, and he agrees that problems with America’s balance sheet will benefit its competitors on the world stage.
“It doesn’t mean a short-term crisis, but it does mean we are going to be poorer in the long term,” Kelly was quoted as telling CNN.
“That means American taxpayers will be paying for the retirement of the people in China and Japan, who are our creditors,” he continued.
GOP congressman warns of growing inflation
On Tuesday, Arkansas Rep. French Hill echoed those concerns during an interview on Tuesday with Fox Business host Maria Bartiromo, noting that the issue “affects every taxpayer.”
The Republican lawmaker went on to point out that “as interest rates go up, we’re going to have more and more of our budget consumed by paying interest on that national debt.”
He also noted the link between excessive government spending and rising levels of inflation. A YouGov/Economist poll published last week found that inflation is a key factor in driving down President Biden’s approval rating.