America, which is supposed to beg for help for impoverished Pakistan, is itself deeply in debt! How will it survive?
While impoverished Pakistan secured a loan from the IMF thanks to Trump's "friendship," the United States itself is mired in a crippling debt trap. America has accumulated debt of over $105 trillion and is spending billions of dollars daily just to pay interest. The question is: how will Trump, who supports others, manage his own economy?
Pakistan IMF loan: After the meeting between US President Donald Trump and Pakistani Army Chief Asif Munir at the White House, it seems as if Pakistan has hit the jackpot. Pakistan, which was on the verge of poverty, has once again got a lifeline.
The International Monetary Fund (IMF) has approved a loan of US$1.2 billion (about Rs 10,782 crore) to Pakistan. This is the same Pakistan about which India has repeatedly warned the world that the money going there ultimately ends up in nurturing terrorism. However, diplomacy experts believe that the Trump administration's 'soft corner' is working behind this decision of the IMF.
However, the other side of this story is quite shocking. On one hand, the US is using its influence to secure loans for Pakistan , while on the other, the world's largest economy, the US itself, is mired in a debt quagmire.
Trump's 'friendship' brings relief to Pakistan
The IMF typically conducts a rigorous evaluation of a country's economic policies before granting a loan. A high-level committee releases funds only after the country meets its criteria. However, it is an open secret in global diplomacy that the US wields significant influence over IMF decisions.
It is believed that Asif Munir's meeting with Trump and the subsequent agreement have paved the way for Pakistan to secure the loan.
Despite India's opposition and apprehensions, Pakistan has received this money, which will certainly provide relief to the government there for a few months. But the real question is: what is the state of America's own coffers, which is providing loans to others?
America's heavy debt burden
Donald Trump promised during his election campaign that he would make America great again. But even he doesn't know how.
America's total debt has now reached a historic high of $105.2 trillion. The magnitude of this figure can be gauged from the fact that it is approximately 3.5 times America's total GDP.
This massive debt burden isn't limited to the government alone, but ordinary Americans are also deeply burdened. The federal government's debt is $38.2 trillion.
This includes personal debt of $26.4 trillion, mortgage debt of $21.3 trillion, and student debt of $1.8 trillion. This means that everyone, from the government to the common citizen, is living a life of debt.
- In October 1995, the federal debt was only $4.9 trillion.
- In 2005 it increased to 8 trillion dollars.
- In 2015 it reached $18.1 trillion.
- And now it has crossed $38.2 trillion.
It is estimated that if this pace continues, this debt will reach $50 trillion by 2028. The situation has become even more explosive since the COVID-19 pandemic, as the debt has increased by $15 trillion since then.
$3 billion is going into interest alone every day.
The US is now more concerned with paying interest on its debt than spending on development. According to reports, the US is spending approximately $3 billion daily on interest payments alone. This is a situation that can cripple any country's economy.
Donald Trump may make lofty claims about the US economy, but the reality is that the country is trapped in a terrible debt trap.
Unless concrete economic reforms are implemented soon, the government will have no money left for development projects, infrastructure, or public welfare. All revenue will be spent on debt repayment.