The latest report from the nonpartisan Committee for a Responsible Federal Budget reveals a staggering milestone: the U.S. national debt has surpassed 36 trillion dollars, reaching an all-time high. This surge comes just three months after crossing the 35 trillion mark in July, demonstrating an alarming acceleration in debt accumulation.
According to the U.S. Treasury Department's financial data website, the current debt stands at a whopping 36.034 trillion dollars. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, commented that government borrowing has become as predictable as the change of seasons. However, she may be underestimating the severity of the situation. While the growth of debt may be consistent, its pace is far faster than the regular cycle of seasons.
The data shows a concerning trend: it took about seven months to increase from 34 trillion to 35 trillion at the beginning of 2024, but only three months to reach 36 trillion. This acceleration is unprecedented and worrying.
Further analysis by the Russian news agency Sputnik calculates that the 35 trillion dollar debt mark was reached in 211 days, growing at an average rate of 0.014% per day. The latest trillion took only 87 billion dollars per day, highlighting the alarming speed of debt accumulation.
This exponential growth raises questions about the sustainability of the U.S. government's financial practices. The constant borrowing to cover expenses, often referred to as "living beyond one's means," could lead to a point of no return, making it impossible for the Federal Reserve to reduce the debt through measures like quantitative tightening.
Compounding the problem, the Federal Reserve's efforts to combat inflation through interest rate hikes have actually increased the government's cost of borrowing, further fueling the debt spiral. The Treasury Department's data reveals that the net interest payments on the national debt reached a staggering 8820 billion dollars in 2024, a 33.8% increase from the previous year.
Adding to the uncertainty, the short-term funding bill passed by Congress in September is set to expire on December 20th. Lawmakers have a narrow window of approximately 20 working days to pass new legislation and avoid a government shutdown. The looming possibility of a shutdown and the expiration of the debt ceiling suspension in early 2025 are further straining the political landscape.
As the debt continues to rise and political tensions escalate, the future of the U.S. economy remains uncertain. The question on everyone's mind is whether the government can address this growing crisis before it's too late.