#USNationalDebt Here’s a clear and up-to-date summary of the #USNationalDebt situation:
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💵 What’s the Current Debt?
As of June 4, 2025, the total U.S. national debt stands at approximately $36.21 trillion—comprising $28.95 trillion held by the public and $7.26 trillion in intragovernmental debt .
This debt now exceeds 122% of U.S. GDP, marking one of the highest levels in history .
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📈 How Fast Is It Growing?
The nation is adding around $4.3 billion per day, which translates to roughly $1 trillion every 7–8 months .
The fiscal deficit for the first eight months of 2025 is $1.4 trillion, about 7% higher than the same period in 2024 .
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💳 Why It Matters
1. Rising Interest Costs
The U.S. now spends close to $1 trillion per year servicing its debt — more than what’s spent on defense or Medicare .
2. Credit Outlook Risk
In May 2025, Moody’s downgraded its rating of U.S. debt from Aaa to Aa1, signaling concern over fiscal sustainability .
3. Fiscal Crisis Warning
Economic experts including Ray Dalio and Ken Rogoff warn of a potential “economic heart attack” if deficits remain unchecked .
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🌩️ What’s Driving This?
**"One Big Beautiful Bill"** (Trump-backed) could add $2.8 to $3.3 trillion to the debt over 10 years, with interest inflows and unfunded tax cuts pushing the total increase to more than $4–5 trillion .
While backers point to modest GDP growth, the Congressional Budget Office (CBO) expects only 0.5% annual growth, insufficient to offset deficit increases .
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🧭 What to Watch
Congressional decisions on new fiscal packages and infrastructure deals
Debt ceiling negotiations expected before July to allow further borrowing
Federal Reserve policy—interest rate changes could spike debt service costs
Credit agencies (Moody’s, S&P, Fitch) for additional ratings changes
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