The national debt of the United States is a monster that keeps growing. At $36 trillion, this is the highest in history and shows no signs of slowing down.

In 16 years, the debt-to-GDP ratio has doubled, now standing at 121%. Compared to World War II, when this ratio peaked at 119%. At that time, the country was fighting against global tyranny. What about now? Debt is soaring due to poor financial planning and relentless spending.

Since 2008, federal debt has soared by $26.6 trillion, nearly tripling, while the economy has only grown by $14.6 trillion. That’s a deficit of $12 trillion. Economists predict the situation will get even worse.

The Congressional Budget Office (CBO) stated that the debt-to-GDP ratio could reach 131% by 2034, assuming the economy avoids recession.

Debt is eroding America's budget

Debt repayment is draining America. Every day, the government spends over $1 billion just to pay interest. This year, the costs are expected to reach $1 trillion, more than what the nation spends on defense.

Think about that. America is pouring more money into debt interest than into border protection or upgrading the military. The situation is even worse due to high interest rates.

Since the pandemic occurred, the Federal Reserve has raised interest rates, making borrowing more expensive. This pushes costs up everywhere, from mortgages to groceries.

Currently, the debt-to-GDP ratio is 125%. Experts believe this ratio could reach 200% in a few years. This means that debt will be double the size of the entire economy. When that happens, the government will spend more on interest payments than on things that people actually need, such as infrastructure and education.

On average, each American owes $108,000. That is money taken away from investments that could build a better future. Instead of funding roads, schools, or new technology, this money will be transferred to creditors.

Trump's second term faces a storm

President Donald Trump is entering his second term with an economic time bomb. His administration is struggling to control spending. Join the Government Efficiency Department, a new initiative led by Elon Musk and Vivek Ramaswamy.

Elon said they could cut billions of dollars from the budget. Proposed cuts include reducing public broadcasting and withdrawing funding from advocacy groups related to abortion rights.

But the problem here is: Trump still wants to cut taxes even more. His new plan includes reducing the corporate tax rate to 15%. Critics have sharpened their knives. They say that will drive the deficit even higher.

Jessica Fulton from the Center for Common Political and Economic Research said these cuts will benefit the wealthy and plunge the country into a deeper financial hole. Even some Republican lawmakers feel uneasy, calling this plan reckless as the deficit has tripled.

High interest rates are also creating barriers. The yield on the 10-year Treasury bond, an important benchmark for borrowing, has risen from 0.6% in 2020 to 4.4% recently. This means the government's borrowing costs are skyrocketing. The same applies to ordinary Americans.

However, the administration is not out of ideas yet. A controversial plan involving withholding spending has been approved by Congress. Another proposal targets cutting funding for energy and environmental projects linked to the Inflation Reduction Act. Both ideas could face legal challenges, but desperate times call for desperate measures.

The debt spiral threatens long-term growth

The pandemic has made things worse. U.S. debt soared by $16 trillion during the COVID-19 period, an unprecedented increase. Over the past year, debt has increased by $6.3 billion each day. That’s over $262 million each hour. Think about that.

Debt is not just a domestic issue. It is affecting the role of the United States on the international stage. Investors are starting to worry about the stability of the dollar.

If confidence in the U.S. economy weakens, it will certainly affect global markets, causing chaos everywhere. From stocks to cryptocurrencies, everything will shake. And the global economy itself could collapse.