The United States hit a dubious milestone this week, announcing that its national debt had exceeded $40 trillion. No other nation comes close to this level of absolute financial indebtedness.
This is not simply a matter of out-of-control financial bankruptcy. It is an ominous sign of an unhinged empire that is desperately trying to salvage its historic failure by scorched-earth tactics of endless war.
The world is being held hostage by a pathological system that is no longer tolerable for the sake of humanity, development and peace.
Perhaps of more significance than the total figure – astronomical though that is – is the accelerating pace of U.S. debt growth. Since 2016, the arrears have doubled, up from $20tn. Over the next decade, the U.S. national debt is predicted to climb to $64tn.
In the year 2000, the American account stood at a “mere” $6tn. The last quarter of a century has seen the arrears pile up from endless wars, reckless military spending, and massive tax cuts for the corporate elite. The debt has become irreversible under prevailing policies.
Servicing interest on the arrears now runs at $1tn a year and is one of the largest federal budget expenditures. This means that the United States is caught in a debt spiral from which it cannot extricate itself. It is digging a deeper and deeper hole.
There are profound implications for the United States as a society. As Robert Reich, a former Labour Secretary, noted, the servicing of runaway debt means less money for “schools, healthcare, roads and bridges and social safety nets.” The grim conclusion is that social inequality in the U.S. – already at record levels – will become even more destructive. That speaks of social immiseration and collapse.
There are also far-reaching detrimental impacts on the U.S. and global economy. Even mainstream commentators warn of a historic fiscal crisis pending for the United States from soaring interest rates and hyperinflation. That, in turn, will be transmitted to the rest of the world, especially those countries with large holdings of American debt.
But the exceptional U.S. financial mess is not just a matter of economics. It is an urgent issue of global peace and security.
There are several causes of mounting American debt. However, the main driver, by far, is that nation’s relentless warmongering and militarism, as economist Jeffrey Sachs and other commentators have long contended. It is systemic and chronic.
This year saw the United States celebrate its 250th anniversary since its founding as a modern state. For most of its history, about 95 per cent of the 250 years, the United States has been at war, either through conquest or subterfuge, according to its own Congressional records and eminent historians like David Vine.
No other modern nation comes close to this bellicose conduct, and that is a reason why no other nation comes close to the level of financial debt of the U.S.
Hellbound and Down 
