Experts warn US debt crisis could trigger economic collapse

In a recent government meeting, officials engaged in a robust discussion surrounding the United States' escalating national debt, which has now reached $35 trillion, equating to 123% of the annual GDP per capita. The conversation highlighted the implications of this debt on macroeconomic strategies, particularly regarding funding small businesses to stimulate economic productivity.

One key point raised was the relationship between the national debt and the housing crisis, particularly the prevalence of empty homes owned by large corporations. These entities often hold properties as rental investments, benefiting from tax incentives that discourage sales. This situation has exacerbated homelessness, which is closely tied to soaring housing prices rather than the availability of housing stock. Notably, California, with its high housing costs, accounts for over 50% of the nation’s homeless population, with cities like San Francisco and Los Angeles leading the crisis.

Officials emphasized the need for a comprehensive approach to reduce housing prices, advocating for a significant increase in housing production to alleviate the crisis. The discussion also touched on the unsustainable trajectory of national debt servicing, which is projected to consume half of tax revenues within five years and potentially all within a decade. This alarming trend raises concerns about the future of fiscal policy and economic stability.

Moreover, the meeting addressed the shifting dynamics of global finance, particularly the potential decline of the U.S. dollar as the world's reserve currency. Recent actions by China, which sold off $53 billion in U.S. debt, signal a growing trend among nations to diversify away from the dollar. The emergence of BRICS nations further complicates this landscape, as they explore alternatives to the dollar in international trade.

In response to these challenges, officials proposed integrating cryptocurrencies like Bitcoin into the financial system as a means to maintain the dollar's status and reindustrialize the American economy. The discussions underscored the urgent need for strategic policy reforms to address both the immediate housing crisis and the long-term implications of national debt on economic health.