Archives Economic crisis - New Eastern Outlook

On August 19, 2026, the United States national debt officially crossed the $40 trillion mark. The number has become so large that it risks becoming meaningless. That is precisely why it matters.

By reimposing harsh sanctions on Iran, the US is reverting to an exhausted policy that has failed for decades. America’s 40 trillion debt, accumulated despite decades of plundering resource-rich countries, suggests that Washington needs to try other ways of building a robust economy.

Germany’s economic decline is no longer merely an economic story. It has become a political one. Chancellor Friedrich Merz has become the focal point of this broader crisis of governance and legitimacy.