The total US national debt has exceeded the $30 trillion mark for the first time, more than doubling since 2018, according to data released by the US Treasury. As of November, the outstanding Treasury bills, notes, and bonds held by the government totaled $30.2 trillion, forming the core of the federal debt, which including Social Security trust funds and savings bond obligations, has reached $38.4 trillion. The Securities Industry and Financial Markets Association reported that in 2020, the US raised $4.3 trillion through these three types of government securities, while the fiscal deficit that year surpassed $3 trillion. Although the deficit has since decreased and is expected to fall to approximately $1.78 trillion by fiscal year 2025, interest payments alone have risen to $1.2 trillion. Jason Williams, rate strategist at Citigroup, described interest payments as a serious challenge, noting that while revenues generate $300 to $400 billion, this is insufficient to cover current debt interest costs. He likened the situation to being stuck in a quagmire, where revenues slow down the problem but cannot fully prevent a crisis. The rising national debt level poses a significant threat to the US economy, increasing the burden of interest payments and complicating efforts to balance the budget. Experts warn that if this trend continues, maintaining fiscal stability will become increasingly difficult.
Source: binance
