The US national debt has surpassed $35 trillion, reaching a new ATH. The figure represents a growing problem, adding nearly $1 trillion in just seven months and about $2.35 trillion over the past year.

On average, the national debt increases by about 6.4 billion USD every day. The sheer scale of this debt is staggering and affects every American.

Each person is carrying about 105,000 USD in debt, equivalent to about 266,000 USD for each household. The debt-to-GDP ratio, which compares total national debt and the country's economic output, currently stands at 121.7%.

American Public Debt | Source: pgpf.org

This means the US owes more than its entire economy produces in a year. The Congressional Budget Office (CBO) projects that the debt could surpass $56 trillion by 2034, with the federal budget deficit likely to reach $22 trillion between 2025 and 2034.

Concerned about interest rates

The growing national debt has led to an increase in interest payments, which have become the fastest growing portion of federal budget spending. This means more taxpayer money is spent paying off debt instead of funding basic services like education, health care, or infrastructure.

Federal Reserve Chairman Jay Powell has said that the United States is “on an unsustainable financial path,” and that debt is growing faster than the economy.

Credit rating agencies have taken note of this. Both Moody's Investors Service and Fitch Ratings have lowered their outlooks on US debt. They cite fears of a financial meltdown and endless debates over the debt ceiling. A downgrade could lead to higher borrowing costs for the US, making debt management more costly.

The ballooning national debt has triggered fierce political debates. In Washington, debates about how to tackle the problem are heating up, but clear solutions have yet to emerge.

Politicians have talked about cutting spending or raising taxes, but specific plans are lacking, with many candidates offering little detail on how they would tackle the problem.

The American public is increasingly aware of the national debt, and many are concerned about its effects on future generations. The idea that their children and grandchildren will inherit a huge financial burden of course causes concern for many people. This is putting pressure on lawmakers to find sustainable solutions.

Could Bitcoin be a potential solution?

Some advocates claim that Bitcoin can solve the US debt crisis. We know that Bitcoin, with its fixed supply, acts as a hedge against inflation.

As the US government continues to borrow and spend, Bitcoin's appeal as a store of value may increase. This can protect savings from depreciation and provide a way to diversify an investment portfolio.

There are also expectations that the US government could establish a Bitcoin reserve, particularly from Republicans, although the idea has not received widespread support.

Bitcoin could even spur economic growth and encourage fiscal discipline as it provides an alternative to traditional monetary policies.

However, these ideas remain largely theoretical. Bitcoin's volatility and the regulatory challenges it faces make it a risky choice. While some see it as a possible solution to the debt crisis, others warn that it is not a “panacea”.

And so the debate over Bitcoin's role in the US economy continues, without any clear consensus.

Source: https://tapchibitcoin.io/no-quoc-gia-cua-my-dat-muc-cao-nhat-moi-thoi-dai-voi-hon-35-nghin-ty-usd.html