#USNationalDebt

The national debt of the USA is currently approximately $36.56 trillion, with debt held by the public at $29 trillion and intra-governmental assets at $7.4 trillion. This debt represents the total owed by the federal government to the holders of treasury securities.

Key Components of the National Debt:

- Debt Held by the Public: This part of the debt is owed to individual and institutional investors, foreign governments, and other entities outside of the US government.

- Intra-governmental Debt: This part represents the amount owed to government trust funds, such as the Social Security Trust Fund.

Factors Contributing to the Growth of the National Debt:

- Government Spending and Deficits: The national debt increases when the government spends more than it receives in revenue, resulting in a budget deficit.

- Aging Demographics and Health Care Costs: Government fiscal policies are under pressure due to rising health care costs and an aging population.

- Interest Costs: The annualized cost of servicing the debt was $726 billion in July 2023, representing 14% of total federal spending.

Projections and Concerns:

- The Congressional Budget Office (CBO) projects that federal debt held by the public will rise from 99% of GDP in 2024 to 116% in 2034 and could reach 172% of GDP by 2054 if current laws remain unchanged.

- The increasing national indebtedness may lead to concerns about the long-term sustainability of federal fiscal policies.