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The former US House of Representatives Speaker, Kevin McCarthy, is warning that the national debt is nearing a crisis situation.
In a new interview on CNBC’s Squawk Box, the Republican politician says that the next US president will have to start reducing government spending as borrowing continues to soar, threatening the dollar’s global dominance.
The US debt just ballooned by more than $519 billion between July 3rd and July 28th, reaching a total of more than $36.8 trillion.
“Your real question is, how do you keep the dollar the world currency? I think the more that we go in and sanction we’re pushing countries to learn to go around the dollar. I think President Trump has done a very smart move against the BRICS, what they were trying to do. But it all comes down to debt. That’s why debt is our greatest threat to America, and you cannot avoid it any longer.”
McCarthy says that if the next president doesn’t materially address the debt, then significant safety net programs like Social Security may face deep cuts.
“The next President is going to have the debt crisis… and the challenge is, if you look in the past, the Democrats had the ‘Blue Dog.’ Those were Democrats who cared about debt. They’re no longer there. No one in Congress has been elected saying they’re going to balance the budget. The country has to be educated on this, and Congress is going to have to act, because Social Security in the next administration is either going to take a 24% cut or [it will] do something about it.”
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