#USNationalDebt

The U.S. national debt, exceeding **$34 trillion**, represents the total amount borrowed by the federal government to cover budget deficits accumulated over decades. It arises when annual government spending (on programs, defense, interest, etc.) surpasses revenue (primarily taxes).

Key points:

1. **Causes:** Persistent deficits fueled by tax cuts, spending increases (especially during crises/recessions), and rising healthcare costs.

2. **Holders:** Owned by both the public (individuals, foreign governments like Japan/China, the Federal Reserve, pension funds) and U.S. government accounts (like Social Security trust funds).

3. **Concerns:** While manageable historically, the sheer size and projected growth raise concerns. The major risk is the increasing cost of **servicing the debt** (paying interest), which consumes a growing share of the federal budget and could crowd out other spending or require higher taxes in the future. Sustainability depends on economic growth relative to interest rates.$BTC