The United States national debt reached $40 trillion this month, creating significant pressure on the Treasury market and global demand for dollar assets.

The United States national debt reached $40 trillion this month, representing a debt-to-GDP ratio of 125 percent. This growth in debt has led to concerns regarding the cost of servicing the debt, as interest payments are projected to exceed spending on national defense and Medicaid. Research indicates that the growing debt may encourage nations to diversify their reserve currency holdings. Nonaligned countries have moved nearly one-third of their total reserve portfolios away from foreign-currency claims, with many seeking sanctuary in gold following the freezing of Russian assets in 2022. To manage these costs, the U.S. Treasury recently initiated a bond-buyback program to dampen long-term interest rates. However, analysts suggest that a credible fiscal package may be necessary to stabilize the debt. The national debt has increased significantly during recent administrations, with 50 percent of the total debt accrued since President Trump was first elected.

Sources

• MarketWatch
  America is asking the wrong question about its $40 trillion in debt, this MIT expert warns
• MS NOW
  The $40 trillion national debt threatens the whole economy. But a fix is possible.
• Yahoo Finance
  The US debt crisis just got uglier: Number to know

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Paywall and unreadable sources

• The Washington Post
  Opinion | Why America’s interest payments are suddenly spiking
• The Atlantic
  Economists Who Weren’t Worried About the Debt Are Now Panicking