The Congressional Budget Office (CBO) issued a heavy warning on Thursday (March 27) that the United States will enter a "debt spiral" crisis in the next 30 years - the federal deficit will soar from 6.2% in 2025 to 7.3% in 2055, and public debt will exceed 156% of GDP. What is even more shocking is that debt interest payments will surpass core expenditures such as military and infrastructure for the first time, becoming the "fiscal noose" that tightens the US economy.

1. Debt Tsunami: Interest Costs Devouring National Budgets

The proportion of interest expenses to GDP is expected to skyrocket from the current 3.2% to 5.4% by 2055, surpassing "discretionary expenses" (5.1%) for the first time. This means that in the future, the taxes paid by Americans will be more used to repay creditors than national defense, transportation and people's livelihood.

The proportion of public debt will soar from 100% to 156%, far exceeding the average level from 1995 to 2024. CBO warned: "The debt monster will drag down economic growth and deliver more wealth to foreign creditors."

2. Policy Gunpowder Bucket: The Deadly Combination of Tax Reduction and Immigration

The "tax cut extension" advocated by the Trump team may increase the deficit by an additional $4.6 trillion, while the healthcare cuts advocated by the Republican Party are only a drop in the bucket.

Strict immigration policies may exacerbate labor shortages, and together with tariff policies, constitute a 'hidden bomb' not mentioned in the report. Economists point out that this may lead to a decrease in real GDP growth rate from 2.1% in 2025 to 1.4% in 2055

3. Structural Crisis: Aging Explodes Fiscal Time Bomb

The shrinking of labor force and the rising cost of medical and social security have created a 'scissors gap', making it difficult for the current budget system under the law to continue. CBO emphasizes, "The prediction is based on existing laws, but political reality may make the situation worse

Military spending and livelihood projects will continue to be squeezed by interest expenses, which may trigger a fierce battle in Congress over whether to protect the gun or the money bag.

【 Summary 】

This report depicts a 'fiscal apocalypse scenario': when debt interest becomes the largest federal spending item, the United States will have to face a death cycle of 'borrowing new debt to repay old debt'. Under the dual pressure of deteriorating population structure and political games, this brewing debt storm may reshape the economic foundation of US global hegemony.