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The U.S. national debt surpassed $38 trillion, sparking warnings from experts about potential national security and economic risks. Analysts cite political polarization and lack of fiscal discipline as core drivers, while some fear a sudden market shock or a long-term squeeze on U.S. power.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The U.S. national debt passed $38 trillion in October, prompting warnings from experts
00:08interviewed by Fortune.
00:09Richard Haass, the president of the Council on Foreign Relations, said the rising debt
00:14could trigger a national security crisis.
00:16He outlined two scenarios — a sudden cliff event from a failed Treasury auction or geopolitical
00:22coercion, and a slower squeeze that reduces defense budgets and weakens U.S. leverage.
00:28Barry Eichengreen said the U.S. debt problem is driven more by political polarization than
00:32economic forces.
00:34He told Fortune that neither party is serious about deficit reduction, and both have abandoned
00:39fiscal discipline.
00:40Billionaire investor Ray Dalio warned in September that the U.S. could face a debt-induced economic
00:45heart attack within three years.
00:47As experts raise alarms about economic and global risks, Elon Musk has endorsed technology-driven
00:53growth as the only path forward.
00:56And Trump said he wants to use tariff revenue and trade investment money to address fiscal
01:00issues.
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