National debt in the US reaches an all-time high of $36 trillion

Robert Kiyosaki, co-founder of The Rich Dad Company, recently expressed his support for Bitcoin during an appearance on Cavuto: Coast to Coast. In addition, he shared his concerns about the bond market.

The U.S. national debt has exceeded $36 trillion, marking a historic milestone. This unprecedented level of debt accumulation by the federal government reflects a record-setting pace.

The Treasury Department has recently released new data indicating that the gross national debt has reached a staggering $36,034,994,586,981.97.

The US has recently surpassed the significant milestone of $36 trillion in national debt, following its achievement of the $35 trillion mark in July 2024. In the past year alone, the country has reached several trillion-dollar milestones, including $34 trillion in January 2024 and $33 trillion in September 2023. This staggering increase is particularly striking when considering that the national debt was only around $907 billion just forty years ago.

The total debt of the United States has surpassed $36 trillion. This milestone is accompanied by the projection that the debt held by the public, which is a metric favored by economists as it excludes intragovernmental accounts like the Social Security trust funds, will reach 99% of the country’s gross domestic product this year.

The national debt of the United States has recently exceeded $36 trillion, marking a significant milestone after surpassing the $35 trillion mark not long ago. This information was reported by FOX Business and Fox News.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), expressed deep concern about the underlying fiscal challenges we are facing and the lack of seriousness with which our elected leaders are addressing them.

She emphasized that while the staggering $36 trillion in gross debt is undoubtedly alarming, it is the overall fiscal predicament that is even more worrisome. MacGuineas made these remarks during an interview with FOX Business.

“The national debt is projected to reach an unprecedented level relative to the economy in the upcoming presidential term. It is concerning that the interest costs alone exceed the budget for almost every item.

Additionally, our trust funds are at risk of becoming insolvent, which would lead to automatic cuts in benefits. All of these alarming developments are a consequence of our failure to take action,” warned MacGuineas. She emphasized the need for lawmakers to address these issues urgently and propose effective strategies to ensure a more sustainable fiscal trajectory.”

The Congressional Budget Office, a nonpartisan organization, predicts that the amount of debt held by the public will surpass a historical milestone, reaching over 106% of GDP by 2027. This would break a record that has stood for nearly 80 years since 1946, a time when the United States was undergoing post-World War II demobilization.

In the next few years, once that milestone is achieved, the debt-to-GDP ratio is expected to increase significantly in the coming decades.

In recent years, the federal budget deficits have expanded due to the increase in interest rates. This has led to higher net interest costs in managing the outstanding debt.

Social Security and Medicare, two mandatory spending programs, have further contributed to this trend by experiencing increasing costs due to the aging population in America.

The United States is facing a pressing issue with its national debt, as it is projected to skyrocket to unprecedented levels if no reforms are implemented. This alarming situation raises concerns about the potential of a debt crisis.

In fiscal year 2024, the federal government recorded a budget deficit of $1.834 trillion, making it the third-largest deficit in U.S. history.

In the last fiscal year, the deficit in FY2024 exceeded the deficit from the previous year by $139 billion. This increase was primarily driven by a higher growth rate in federal spending compared to the increase in tax revenue.

In fiscal year 2024, net interest payments on the debt increased by $240 billion, surpassing expenditures on defense and Medicare. In just one year, Social Security spending saw a significant increase of $107 billion, while Medicare expenditures also rose by $25 billion.

The future President of the United States will be confronted with a challenging fiscal battle in 2025. This battle will revolve around the issues of mounting debt, increasing deficits, and the contentious topic of taxes.

As policymakers grapple with a range of fiscal deadlines in 2025, such as expiring tax cuts, budget caps, and the impending battle over the debt limit, the federal government has surpassed the $36 trillion mark for the first time.

“The election may be over, but the national debt continues to surge ahead at full speed,” remarked Michael Peterson, CEO of the Peter G. Peterson Foundation, in an interview with FOX Business.

“During the summer, America surpassed the $35 trillion mark in debt, and before Thanksgiving, it had already soared past $36 trillion. It is crucial for this debt spiral to come to a halt, particularly as the new administration and Congress confront significant fiscal deadlines in 2025.”

As we approach the year 2025, it becomes increasingly crucial for us to address America’s rising debt and concerns about inflation. It is a pivotal time for our economy and fiscal standing.

Given the current state of affairs, with a thriving economy, low unemployment, and improving inflation, we must take the necessary steps to secure our fiscal future rather than exacerbating the situation.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *