US Record Defense Budget Leads to 'Debt Trap'

Chinese expert Zhou Rong stated that the US's projected 1.14 trillion dollar defense budget for 2027 would further weaken the federal financial system. Zhou emphasized that the current defense budget clearly shows its pressure on the US debt system.The annual interest expenses alone exceed the defense budget. The US federal government's interest payments on its national debt are expected to reach 1.24 trillion dollars in the 2026 fiscal year. Zhou noted that the government must prioritize interest payments first. After paying interest, the remaining funds are insufficient to cover the defense budget deficit, leading to new borrowing.