economy

April 25, 2026

US Public Debt Reaching Record Highs

The total public debt of the USA, the most indebted country in the world, reached an enormous 38.57 trillion dollars (or 38,570,000,000,000 dollars) in February this year, an increase of more than 2.8 trillion dollars compared to last year, according to data from the Joint Economic Committee of the US Congress. In March, it already broke the 39 trillion dollar mark.

US Public Debt Reaching Record Highs

TL;DR

  • US public debt reached $38.57 trillion in February and exceeded $39 trillion in March.
  • Daily debt growth averaged $8.03 billion, or $5.5 million per minute.
  • Average interest rates on US debt have doubled from 1.55% to 3.36% in five years.
  • Over $261 billion was paid in interest to government funds in the last year.
  • Interest costs are projected to be nearly 14% of total federal spending by FY2026.
  • Despite unique advantages like the dollar's reserve status, the US is in a 'debt spiral' as debt exceeds 120% of GDP.
  • Annual interest payments ($970 billion) now exceed military spending, having tripled since 2020.
  • Potential long-term consequences include a weaker dollar, higher inflation, slower economic growth, and a fiscal crisis.
  • IMF projections show US public debt reaching 140% of GDP by 2031.
  • Federal Reserve Chair Jerome Powell described the debt trajectory as 'unsustainable'.
  • Projections suggest average interest rates on debt will exceed economic growth by 2031, with debt reaching $64 trillion in ten years.
  • Unlike post-WWII debt reduction, current conditions lack budget surpluses, industrial booms, or financial repression; inflation and dollar devaluation are the remaining mechanisms.
  • Public debt comprises over $31.3 trillion in public debt and over $7.6 trillion in intergovernmental holdings.
  • Donald Trump's promises to reduce national debt face hurdles, including a Supreme Court ruling on tariffs.
  • While the US maintains economic dominance, the privilege of reserve currency status is not infinite.
  • The US public debt is entering a zone of long-term unsustainability, with consequences expected to grow significant.
  • US foreign policy aims to maintain the petrodollar to prevent currency collapse, resorting to escalating global conflicts due to internal fiscal constraints.

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