Last week, the International Monetary Fund criticized the Biden administration’s excessive spending, stating that it is “out of line with what is needed for long-term fiscal stability.”
As per the New York Post, the IMF, an international organization focused on combating financial crises worldwide, cautioned that the continually increasing national debt in the U.S. presents a long-term threat to the global economy.
“Something will have to give,” the IMF warned in the foreword of the World Economic Forecast published on Tuesday.
“The exceptional recent performance of the United States is certainly impressive and a major driver of global growth,” the IMF stated. “But it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability.”
Unfortunately, the Biden administration has demonstrated no willingness to scale back its spending.
Last month, the administration proposed a massive $7.3 trillion budget for the fiscal year 2025.
The Office of Management and Budget reported that the national debt would surge to $45.1 trillion by 2034 under this budget plan.
The IMF’s cautionary message comes as the U.S. national debt nears $35 trillion, steadily increasing by approximately $1 trillion every 100 days.
The annual burden of the national debt has also escalated, with the U.S. debt interest payments surpassing $1 trillion in October, as reported by Business Insider.
Furthermore, the U.S. debt-to-GDP ratio, a gauge of debt relative to the country’s economic output, is reaching alarming levels. As per a report from the World Population Review, the U.S. ranks ninth globally in terms of debt-to-GDP ratio, standing at 129 percent. The site suggests that a debt-to-GDP ratio of 77 percent or less fosters domestic economic growth.
In a typical Biden move, the White House is pointing fingers at former President Donald Trump for the issue.
“The Trump tax cuts added $2 trillion to the debt with unpaid giveaways skewed to the wealthy and big corporations, and now Congressional Republicans are proposing another $5.5 trillion in tax cuts skewed to the rich while raising taxes on millions of middle-class families,” White House spokesman Michael Kikukawa stated.
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