Recently President Donald Trump made a quite disrupting (for the defense community this time) tweet:
I am certain that, at some time in the future, President Xi and I, together with President Putin of Russia, will start talking about a meaningful halt to what has become a major and uncontrollable Arms Race. The U.S. spent 716 Billion Dollars this year. Crazy!
Yes, he has signed that budget, yes the money seems to be needed, and even more is needed (as always) but…
How did the US get to this state? We are not even talking about the debt but about the interest rates alone. Now this is “crazy”. If the US wants to finance itself it has to put even more debt and pay more interest rates. It’s a spiral. More and more countries want to trade skipping the USD. At some point there will be not enough loaners wanting to buy US bonds. Simple?