#USNationalDebt 📈 Context & Trends

The debt has crossed the **$36 trillion mark **, with projections reaching $37 trillion soon—likely in mid to late 2025—driven by persistently large deficits and rising interest expenses .

Interest payments now exceed **$1 trillion annually **, surpassing spending on defense and approaching social programs' levels .

The debt-to-GDP ratio is above 120 percent, raising concerns among economists and global investors—Taiwan's central bank, for example, warns of long-term risks for Treasury market stability .

---

🔍 Why This Matters

Deficit & servicing costs: High interest rates mean that almost a trillion dollars per year go just to cover past borrowing.

Fiscal flexibility: With over 30% of outstanding debt (around $11 trillion) needing to be refinanced within a year, the government’s exposure to interest rate fluctuations grows .

Global confidence: Credit-rating agencies (like Moody’s) are beginning to downgrade U.S. ratings, signaling concern over long-term fiscal sustainability .