We Are Reaching the Point of No Return in Federal Debt

It will “erode rapidly”, by 2032.  That’s only 8 years away and we aren’t sure we could make it that long if faith and confidence collapses before then.  Sadly most people don’t understand that borrowing more money isn’t the solution.  There is a popular book going around that some really smart friends of mine have read and it speaks about MMT.(Modern Monetary Theory)   Basically the book says that America can print and borrow unlimited amounts of money because…we are America and can do anything we want!

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Most people understand that there’s a point at which borrowing more money isn’t the solution — it’s the problem. For people, bankruptcy offers a last resort escape from debt, and financial markets work diligently to avoid lending to those who might not be able to repay. The United States government, however, has no such safety net, making it imperative to gauge just how much debt is sustainable. This is where the concept of fiscal space becomes critical — it measures the buffer between current debt levels and the point of no return.

The challenge we face is not merely a collection of numbers. It’s about the future economic stability of our nation. My recent analysis, underpinned by the Congressional Budget Office’s projections, reveals that if we maintain our current fiscal trajectory, we will see our borrowing capacity, our fiscal space, begin to erode rapidly by 2032.

This is not a call for austerity or a reduction in our ability to invest in our nation’s priorities. Rather, it’s an argument for preserving our financial agility to ensure that when the next crisis hits, we can face it without endangering the economic stability of future generations.

Our choices today will define our nation’s legacy. By acting wisely now, we can maintain our country’s ability to borrow when necessary, keep our debt sustainable, and ensure that U.S. Treasurys remain the global standard of financial security. The responsibility falls not just on policymakers but on all of us to demand a sustainable fiscal strategy that will carry us into a secure future.

 https://www.washingtonexaminer.com/restoring-america/courage-strength-optimism/2943372/were-reaching-the-point-of-no-return-on-federal-debt/