The U.S. national debt exceeds $34 trillion and is the largest in the world. It consists of domestic (government debt to its own entities) and external (bonds purchased by investors, countries, banks). The debt is increasing due to large budget deficits, spending on social programs, defense, and servicing the debt itself. The rise in Federal Reserve rates complicates the situation by increasing servicing costs. Investors still consider U.S. bonds to be reliable, but the rapid growth of the debt raises concerns about long-term financial stability and the potential downgrade of the U.S. credit rating.
