Comicomment: Abusing hegemony, the U.S. descends into vortex of debt

(ECNS)--The U.S. federal government's total public debt has reached $34 trillion for the first time, the U.S. Treasury Department reported last week. It is a astonishing expansion of debt, barely three months after the debt first hit 33 trillion.

Such massive debt is a reflection of the U.S. dollar hegemony. Relying on the dominance of the U.S. dollar, the United States behaves recklessly in economic policy, with volatile and aggressive monetary policies. The U.S. has maintained a long-term trade deficit, exporting dollars and inflation, while forming a "debt cycle" system through extensive borrowing. The extremely low borrowing costs have led the United States to indulge in the abuse of its hegemony and develop an addiction to borrowing.

Dragged down by such enormous debt, the U.S. economy is inevitably heading towards the vortex of a financial crisis. Several economists indicate that once a critical point is surpassed, the accumulated government debt will start to slow down economic growth. In such a scenario, investors may lose confidence in the U.S. government's ability to adjust its fiscal situation and may be unwilling to provide financing for U.S. borrowing unless interest rates significantly increase.

Moreover, the U.S. Congress is likely to be engulfed in even fiercer partisan struggles. It is reported that with the surge in U.S. debt, the current fiscal situation has become a tense source of political division within the U.S. government. Although both the Democratic and Republican parties advocate for debt reduction, they differ in their approaches. In fact, since the 1980s, conflicts between the two parties over the debt ceiling have led to multiple government shutdowns.

In the long run, Washington's political incapacity in resolving the enormous U.S. debt is seriously eroding the country's credibility and will undoubtedly accelerate the decline of the U.S. dollar hegemony.