Joe Biden has received a stark warning about an impending financial crisis that looms ominously over the United States. This crisis stems from the alarming surge in national debt, which is predicted to skyrocket to an astonishing $33 trillion this year, alongside a federal deficit expected to double to a staggering $2 trillion. These dire financial circumstances have raised concerns that the government may face a shutdown if a new budget or a stopgap measure isn’t swiftly approved.
Just a few weeks ago, the White House implored Congress to consent to a short-term funding extension in a desperate bid to avert a potential government shutdown, which could become a reality by the end of the month. The window for action is narrow, with the House and the Democratic-controlled Senate scheduled to convene for merely 12 days before funding expires on September 30.
Speaking to GB News, Steve Moore, a former economic advisor to Donald Trump, issued a grave warning that a financial crash could be on the horizon if the national debt continues its relentless ascent. Moore cautioned, “I do believe if we just continue to run up the deficit then there will be a financial crisis at some point. I don’t know if that’s going to happen in three weeks or three months or three years, but this cannot continue. This is just inflating a bubble that’s getting bigger and bigger, and at some point, if you don’t start deflating from that bubble, it pops. And that’s the real danger.”
Despite the relative strength of the U.S. economy, the federal deficit has failed to recede as initially anticipated. This discrepancy could result in Americans facing larger interest payments and decreased tax receipts. A spokesperson for the Office of Management and Budget acknowledged the need for a short-term continuing resolution (CR) next month, indicating the challenges in reaching a bipartisan, bicameral agreement on fiscal year 2024 appropriations bills.
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The burgeoning deficit could have severe political repercussions for Biden as he gears up for the 2024 presidential election. His efforts to claim credit for reining in the budget could be overshadowed by the current $2 trillion spending imbalance. However, it’s worth noting that the spending imbalance was even more substantial in 2021, soaring to $2.8 trillion due to unprecedented expenditures related to the COVID-19 pandemic, as reported by the Congressional Budget Office.
Steve Moore urged policymakers to learn from the devastating 2008 financial crisis, emphasizing the need to address the debt issue before it metastasizes like a cancer cell. Moore cited the catastrophic consequences of the 2008 crisis, including massive business failures, bank bailouts, and soaring unemployment rates. He cautioned against turning a blind eye to the escalating debt, stating, “We’re just whistling Dixie and pretending it doesn’t exist.”
In conclusion, the United States faces an alarming fiscal challenge marked by soaring national debt and an impending government shutdown if immediate action is not taken. The warnings from experts like Steve Moore underscore the urgency of addressing this crisis before it reaches a point of no return, as the repercussions could be devastating for the economy and American citizens alike.