$40T Debt Is National Security Issue: Haass

Summary

Richard Haass argues that US foreign policy begins at home and that eroding economic, political, and social foundations—especially $40 trillion in national debt—undermine American power and global confidence. He warns that loss of confidence could push foreign creditors away from the dollar and force higher rates, while also highlighting risks from geopolitical shocks such as oil infrastructure destruction. He says he is a long-term diversified investor but has gradually dialed down risk due to age and elevated crisis risk.

• Haass says US foreign policy begins at home and rests on economic, political, and social strength.
• He sees weaker global confidence in the US due to polarization, debt, and social frictions.
• The $40 trillion national debt is framed as a national security issue.
• He warns foreign creditors could move away from the dollar and stop financing US debt.
• Debt-service costs now exceed defense spending, crowding out productive investment.
• He notes public trust in government and economic information has fallen sharply.
• He worries about a crisis or recession after a long expansion and a decade-plus without recession.
• He flags oil could hit $200 if energy infrastructure is destroyed in the war.