It’s Not What You Would Think, Instinctively
Most educated Americans would let their minds pivot towards the national debt, when listing the country’s greatest and most monumental national security threats, but that just doesn’t seem to be the consensus.
The intergovernmental part of the debt, which is funds that one faction of the government owes another, is estimated to be roughly $7tn.
In other words, the public, both domestic and foreign, holds over $25tn in bonds, notes and bills that comprise the national debt.
Sum-wise, there’s no comparison; it is the largest and most significant debt ever owed. Unlike the past, when debt was cited as a tool to be used in times of emergency and crisis, Washington increased the deficit by a wide margin any day of the week, whether in times of boom or trough.
The thinking around debt has changed, and it is now looked at as a form of investment in the future of the country, rather than a burden.
If, in the past, countries seemed weak when they issued debt, today they are viewed as capitalizing on their needs to grow fast.
Currently, the USA spends a lot on repaying the interest, with roughly $1 out of $50, but when Japan, a country with a debt/GDP ratio of nearly 200% {double that of the USA} went through thirty years of deflation, the fear of debt leading to hyperinflation evaporated.
Today, the people who analyze debt on behalf of credit agencies, sovereign wealth funds and Wall Street firms, don’t worry about the debt, but about the fact that Washington has no long-term vision about how to handle it, in general or in principle.
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No politician is going to put forth any meaningful taxation or spending reductions, so the creditworthiness of the USA is linked more to its internal strength as a nation, than with anything else.
Foreign threats are no laughing matter, but the terrorists in the Middle East, which were deemed problematic in the early 2000s and caused the launch of major wars, are no longer that.
Trump’s Abraham Accords and the current negotiations about normalizing relations between Saudi Arabia and Israel, show that war, even if it were to happen, won’t involve the USA on a grand scale.
China is tied up with its disastrous housing implosion and demographic collapse, coupled with a leadership vacuum, and doesn’t appear to be capable of making any game-changing moves. Furthermore, Russia is treading water in Ukraine.
Unquestionably, the greatest threat to America is internal division.
The only real enemy that can ever defeat the USA is its own bubbling civil unrest, due to varying value systems.
In one recent example that really showcases how deep and fundamental this issue is, we saw that a senator named Tommy Tuberville is holding back promotions and security clearances to some of the Pentagon’s most important personnel over abortion issues.
If one doesn’t understand how unprecedented this truly is, realize that this one man, who is interfering with the national security of the United States, is precisely how great nations lose their sense of unity and their credit ratings!
Common ground is what makes countries great and, should the United States ever allow itself to fall into anarchy again, due to a lack of compromise over opinions, it will find that it ruined the most amazing card deck ever dealt by nature to one group of citizens.
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