America’s massive pile of national debt has reached a grim new milestone.
The total US federal debt just shattered a record $39.5 trillion, according to the Treasury’s Debt to the Penny database.
That’s up about $3.2 trillion over the last 12 months, notes capital markets analyst Adam Kobeissi.
“Since 2020, US federal debt is now up a massive +$16.3 trillion. This marks a +$2.5 trillion average annual increase, or +$209 billion per month.
At this pace, total US debt will surge to $50.0 trillion before 2030. The US debt crisis has no end in sight.”
Last month, the U.S. Government Accountability Office (GAO) issued a stark warning in its annual report on the nation’s fiscal health, urging immediate and sustained action.
The GAO says the federal government’s unsustainable fiscal path poses serious economic, national security, and societal challenges.
“If current spending and revenue policies continue, the nation’s fiscal outlook is projected to deteriorate further, as debt accumulates at a faster rate than the economy grows.
GAO projects that under current revenue and spending policies, debt held by the public will reach its historical high of 106% of gross domestic product (GDP) by 2029 and grow to 251% of GDP in 2056.”
The GAO notes that interest spending already exceeds defense outlays and is set to keep rising, with risks including higher borrowing costs for households and businesses, slower wage growth and reduced government flexibility for future crises.
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