US debt jumps to $38 trillion – alarm for the future!

US debt jumps to $38 trillion – alarm for the future!

The U.S. national debt recently surpassed an alarming $38 trillion mark. This development occurred just 76 days after the debt exceeded $37 trillion. According to the Treasury Department database, the total outstanding U.S. debt is exactly $38,008,137,064,951.61. These figures illustrate the rapid increase, which must be viewed particularly in the context of the USA's current financial challenges.

Every year the US government pays about $1 trillion just in interest on this debt. These interest payments represent the fastest-growing portion of the federal budget. In a particularly troubling sign, the national debt hit $36 trillion in November 2024 and rose to over $37 trillion in just nine months after that.

Experts warn of the consequences

Michael A. Peterson, CEO of the Peter G. Peterson Foundation, expressed serious concerns about the current situation. He emphasizes that debt levels are particularly alarming during a government shutdown. Peterson points out that debt growth is twice as fast as it has been since 2000. This could have long-term negative effects on the country's economic stability.

Over the last decade, over $4 trillion has been spent on interest, and projections for the next decade suggest that number will rise to $14 trillion. Such high interest costs have the potential effect of disrupting important public and private investments.

Creditworthiness under pressure

Another worrying sign is the downgrade of the US credit rating by all three major rating agencies. This reflects growing distrust of the government's financial strategies. Peterson therefore calls for responsible reforms to secure the nation's future financial stability and bring about an essential rethink in the approach to debt raising and crisis budgeting.

As dailyhodl.com reports, these are just a few of many signs that suggest the current financial strategy urgently needs a reassessment.