#USNationalDebt

Here’s an up-to-date overview of the #USNationalDebt issue:🇺🇸 #USNationalDebt: Soaring to $36+ Trillion

📌 Latest Numbers

As of early June 2025, the U.S. national debt stands around $36.2 trillion, including $28.95 trillion held by the public and $7.26 trillion intragovernmental .

That equates to nearly 100% of GDP, a post-WWII record .

💰 Rising Costs & Refinancing Pressure

The U.S. spends roughly $1 trillion annually on interest—now more than its defense budget—and interest expense alone hit $949 billion in 2024 .

Around $11 trillion in debt must be refinanced in the next year, placing pressure on Treasury and fueling calls for Fed rate cuts .

📉 Global Confidence & Credit Ratings

Moody’s downgraded U.S. credit from AAA to Aa1 in May, alongside Fitch and S&P, citing fiscal risks and debt growth (now ~123% of GDP) .

Taiwan’s central bank warned high debt levels may erode trust in U.S. Treasuries—crucial for global reserves .

🔍 Why It Matters

Debt servicing is the second-largest government expenditure, crowding out other priorities .

Deficit trajectory: FY 2025’s deficit already hit $1.4 trillion by May, a 7% YoY jump .

Legislation risk: Proposed bills like the “One Big Beautiful Bill” may increase debt by $2.4 trillion over the next decade .

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🔮 What’s Next

1. Refinancing crunch — Treasury must refinance Trillions in coming year; interest rates and credit conditions matter.

2. Political pushback — Debates are heating up over tax cuts and spending; fiscal discipline remains uncertain.

3. Fed pressure — Trump and allies advocate for rate cuts to reduce debt servicing costs; Fed faces a dilemma .

4. Global impact — As U.S. debt affects reserve assets, global confidence could shift, impacting dollar strength and Treasury yields.