(The Center Square)–The United States cannot grow its way out of a debt load costing taxpayers more than $1 trillion a year in interest, the International Monetary Fund said Wednesday.
Managing Director Kristalina Georgieva told reporters at the Fund’s annual meetings in Bangkok that growth “cannot deliver fast enough the necessary adjustment” and that “some measures will be necessary.” In her opening remarks she told policymakers generally to “make urgent repairs to the fiscal house before the cracks widen,” saying now is the time to raise revenues, rationalize spending and improve public financial management.
Net interest on the public debt totaled $1.14 trillion in fiscal 2026, up 11% from the year before and more than the government spent on Medicare or on the military, according to the Congressional Budget Office.
Treasury Secretary Scott Bessent, who did not attend, has argued growth can do the job. Speaking at Southern Methodist University’s Cox School of Business in Dallas on Sept. 8, he said the country does not have a revenue problem but a spending problem, and that with restraint on spending and 3% growth, “we grow our way out of this.” A week later, he told the House Financial Services Committee that 3% is “when we start bending the debt curve and actually start paying down debt.”
The Fund’s October World Economic Outlook forecasts U.S. growth of 2.3% in 2026 and 2.3% in 2027.
Benn Steil, senior fellow and director of international economics at the Council on Foreign Relations, said consistent 3% growth is “highly unlikely” based on the economy’s performance over the past two decades. He said the Committee for a Responsible Federal Budget now estimates 3.3% growth would be needed just to stabilize the debt-to-GDP ratio, while the Congressional Budget Office projects 1.8% annual growth over the next decade.
At 1.8% growth, Steil said, debt held by the public keeps climbing and reaches 108% by 2030, up from about 100% of GDP this year. Stabilizing total federal spending as interest costs grow would require cuts elsewhere, he said.
“Spending on items important to the American people, such as defense and healthcare, will need to be cut,” he told The Center Square.
In a statement issued Wednesday to the IMF’s steering committee and the World Bank’s Development Committee, Bessent said President Donald Trump’s investment policy is promoting “robust economic growth and prosperity, fiscal prudence, energy abundance, and regulatory modernization.”
Bessent’s statement did not address the federal budget deficit or the national debt. It urged the Fund to sharpen its focus on “non-market policies and practices” and exchange rates, saying the IMF “must exercise its voice on this critical issue or risk being sidelined.”
Borrowing costs have climbed since Bessent’s Dallas remarks. The 10-year Treasury yield closed at 5.21% Tuesday, up from 4.80% on Sept. 8, according to Treasury data. It reached 5.29% on Sept. 30, topping the 5.26% peak set in June 2007 and the highest close since 2002.
In an analysis released Thursday, the Congressional Budget Office found that if rates run 50 basis points above its February projections through 2036, deficits would grow by nearly $2 trillion. At 150 basis points higher, they would grow by $6 trillion. The 10-year closed more than 100 basis points above CBO’s projections that day, according to the Committee for a Responsible Federal Budget.
Treasury said Deputy Secretary Francis Brooke is leading the U.S. delegation in Bangkok. In a statement Friday, the department said its engagement there would be guided by “ensuring that the international financial institutions and the broader international economic system advance US economic and national security interests.” A Treasury spokesperson reached by phone Wednesday said officials were at the meetings and asked for additional time to respond to questions about the secretary’s growth projections.
Two Storms, One Harvest
Every food crisis in living memory has been a one-shock event. The 2008 price spike was a commodity bubble. The 2020 shortages were a logistics failure. The 2022 grain scare was a war on one exporter’s ports. Each time, the system bent, adjusted, and recovered, and each time the experts assured us afterward that global markets are simply too big and too diversified to fail.
What nobody in Washington seems eager to discuss is that 2026 is shaping up to be something the modern food system has never actually faced. Two independent shocks, one climatic and one geopolitical, are converging on the same harvest cycle at the same time. Not sequentially. Simultaneously.
Start with the weather. The Pacific Ocean is currently building toward what forecasters now openly call a record event. NOAA’s Climate Prediction Center puts the odds of at least a strong El Niño near 88 percent, with roughly two in three odds it reaches “very strong” status, the tier reserved for perhaps three or four events in the entire satellite era. Every major global model now projects a median peak in Super El Niño territory, and most of them project it exceeding the 2015-16 event, which until now held the modern record. Sea surface anomalies were already brushing the super threshold in mid-July, months before these events normally peak. The atmosphere has already shifted into El Niño mode, and the event is forecast to crest in late fall and early winter.
This is not about “climate change.” It’s about the standard cycles of weather, and the cycle we’re currently in is one that has likely devastated societies in the past. We’re better prepared as a society today, but not all Americans are equally prepared.
Serious households have started doing the quiet math on their own. Grocery bills tell part of the story, and the forecast maps tell the rest, which is why long-term food storage has moved from fringe hobby to mainstream line item in the family budget, with established suppliers like Heaven’s Harvest seeing demand from people who five years ago would have rolled their eyes at the idea. That instinct is not paranoia. It is pattern recognition, and the pattern is worth walking through carefully.
Editor’s Note: Heaven’s Harvest IS a sponsor, but the warnings of this article are real and would be written even if we didn’t have a survival food sponsor. With that said, those who take advantage of what they offer can use promo code “Patriot” for 15% off.
The Fertilizer Clock Is Already Running
While the Pacific warms, the second shock has been unfolding in the Strait of Hormuz. The conflict with Iran turned the world’s most important energy chokepoint into a contested waterway, and the consequences reach far beyond the gas pump. Roughly a third of global fertilizer trade moves through Hormuz, and the disruption sent urea prices up 86 percent year over year by March, with a 53 percent jump in a single month.
The World Bank projects energy prices rising about 24 percent in 2026 and fertilizer about 31 percent. By its own accounting, fertilizer prices ran 35 percent higher in the first five months of this year than the same period last year.
Here is the mechanism the nightly news will not explain. Fertilizer is not a grocery item. It is a time-delayed input. The nitrogen a farmer in Iowa or Punjab could not afford to apply this spring does not show up as a problem this spring. It shows up as a thinner harvest six to twelve months later.
The World Bank’s own food security brief concedes that the effects of reduced applications earlier this season “are likely to become visible only later in harvest outcomes.” Translate that from institutional language into plain English and it means this. The damage is already done, it is already in the ground, and we are simply waiting for it to arrive on the shelf.
Now check the calendar. Six to twelve months from the spring planting season lands us squarely in late 2026 and early 2027. Which is precisely when the strongest El Niño in the instrumental record is forecast to peak, bringing its signature droughts to Southeast Asia, Australia, southern Africa, northern Brazil, and South Asia, the very regions that grow the world’s rice, sugar, and oilseeds.
The World Bank warns openly that a strong El Niño “could disrupt multiple crop belts simultaneously” on top of the conflict-driven input costs. Their baseline projection assumes the Middle East disruptions ease by autumn. What in the last two years of Middle East history suggests that assumption is safe?
The System Has No Slack Left
The comfortable answer is that global markets always adjust. But adjustment requires slack, and the slack is gone. Global cereal production is expected to decline from last year’s records even before El Niño does its work. The UN World Food Programme, hardly a den of right-wing preppers, is calling this the most significant disruption to its supply chains since Covid and the invasion of Ukraine, and its supply chain director put the stakes bluntly.
Today’s supply chain challenges are tomorrow’s hunger crisis.
There is also a political dimension that markets cannot price. When food gets scarce, governments do not behave like economists. They behave like politicians. Export bans, hoarding mandates, and panic buying at the national level turned the modest rice shortfall of 2008 into a global crisis, and analysts are already warning that import-dependent nations are the first dominoes.
The 2015-16 Super El Niño, a far weaker event than what is now forecast, threw tens of millions into food stress across Africa and Asia. This one is projected to be stronger, and it arrives with fertilizer already rationed by price and shipping lanes already contested by missiles.
What Joseph Knew
Scripture does not treat preparation for lean years as faithlessness. It treats it as wisdom delivered in advance to those willing to act on it.
Behold, there come seven years of great plenty throughout all the land of Egypt: And there shall arise after them seven years of famine; and all the plenty shall be forgotten in the land of Egypt.
Joseph did not respond to that warning with a hashtag or a committee. He stored grain during the years of abundance, and when the famine came, Egypt stood while its neighbors begged. The lesson is not that famine is certain. It is that the time to prepare is precisely when preparation still looks optional.
Nobody who filled a pantry in a year of plenty has ever regretted it, and nobody standing in an empty aisle has ever been glad he waited for certainty.
None of this calls for panic, and panic is the enemy of sound judgment anyway. It calls for the same unglamorous prudence our grandparents considered ordinary. Keep some cash margin, know your local growers, and put real food in deep storage while it is cheap and available, because the entire arc of this story is that cheap and available is a closing window.
Families looking for a straightforward place to start can visit Heaven’s Harvest and use promo code Patriot for 15 percent off long-term storable food. The forecasts may yet soften, the strait may yet reopen, and we should pray they do. But hope is a fine thing to hold and a foolish thing to eat.
