New York, Jan 7 (IANS): The US government’s growing national debt at $34 trillion debt is a “boiling frog” for the US economy, as government expenditure bills will exceed its revenues by the early 2030s, according to a Congressional Budget Office estimate.
Sounding this alarm, JP Morgan, said: “But the US doesn’t look likely to cut back its discretionary spending anytime soon.”
The US’ $34 trillion debt mountain might be a “boiling frog” phenomenon for the economy, as higher deficits and ballooning debt servicing costs could easily become unsustainable, JPMorgan warned.
A boiling frog situation is akin to people failing to act on a ballooning problem causing it to become so severe that it boils over.
“A frog thrown in boiling water could jump out, but if the water were to boil slowly, it’s too late for the frog to notice it’s being cooked”.
JPMorgan said the age-old metaphor could easily apply to America’s debt situation while forecasting its 2024 outlook.
Economists have been seriously concerned for years, and have time and again asked the government to effect changes in its spending patterns, but the calls from bankers have now grown louder than ever as the government continues to borrow at record volumes.
January will see the US national debt hitting a new high of $34 trillion as lawmakers lifted the ceiling limit last year to skirt a debt repayment default on interest.
US debt will ony worsen in the coming years, according to the Congressional Budget Office,…
