by Rod Williams, Oct. 30, 2026- If you are not concerned about the coming economic disaster, you are not paying attention. Donald Trump's tariffs and war of choice against Iran and the subsequent increase in oil prices and his tax cuts without offsetting cuts in spending have contributed to the crisis we are facing and have hastened the day of reckoning; however, he did not create this economic crisis all by himself; it has been decades in the making.
I am not optimistic that whoever comes after Donald Trump will address the problem of the debt spiral and avert the coming crisis. I certainly do not see Democrats suddenly becoming deficit hawks, fiscally responsible and advocates of a balanced budget. On the contrary, the Democratic Party now contains a large number of openly socialist members. I fear that if they come to power, we will experience massive new spending programs and even more debt. Also, I fear their view of the path to solving the crisis is confiscatory taxes on the wealthy, which would have little positive impact, could curtail economic growth, and make the problem worse.
The only path forward that avoids a crisis, as I see it, is for the US to show spending restraint, combined with massive economic growth. Many see AI as the source of that growth that will avoid the coming crisis. I am not convinced.
We need serious-minded people willing to do more than pander. They are out there, but a message of "Medicare for All," or "No Tax on Tips," wins votes; a message of austerity and responsibility does not. I don't pretend to know how we avoid the coming crisis. I have policy preferences and can see things we should not do, but I am unsure the coming crisis can be avoided. I think a first step is to recognize the severity of the problem and stop burying our heads in the sand. The excerpted article below examines the severity of the problem. Please follow the link to read the full article.
interest on the national debt—$200 billion a month by 2036
By Eleanor Pringle, Fortune, Oct. 28, 226- ... Treasury’s revenues versus its expected spending over the next decade would give even the most optimistic budget doves pause.
... with the trust fund for Social Security due to run out in a little over seven years, and Medicare to go insolvent in six and a half years, budget questions are pushing further up the agendas of both politicians and the public.
... In 2026, the U.S. Treasury paid $1.2 trillion in interest on the debt, ... By 2036, this increases to a little under $2.5 trillion a year—or $200 billion a month.
Putting that figure into context, the expected spend on the defense of the nation is $1.1 trillion by 2036, meaning roughly double that figure will be spent servicing borrowing.
... the CBO expects the gap between revenues and expenditures to widen over the next decade. The Treasury has confirmed that the fiscal year 2026 deficit was $2 trillion. The CBO projects it will widen to more than $3 trillion by 2036. The total budget shortfall between this year and a decade from now is $25.6 trillion.
A major driver of the continued need to borrow is the increase in social benefits ... an aging population, ....
The growth argument
... More recently, politicians have suggested that—compounded by the promise of AI—the U.S. economy could grow its way out of any fiscal concerns. Budget experts are not so convinced ... because AI may well mean the replacement of humans with machines and robotics, meaning that a major source of government revenue (income taxes) could potentially be reduced.
But growth alone is unlikely to solve the entire budget question, ... Stronger growth will help, but it’s not enough. We need more than just growth, we need policy actions.
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