U.S. national debt has risen to $39 trillion, with annual interest payments totaling approximately $1 trillion
Svmuu News: The U.S. national debt has risen to approximately $39 trillion; the size of the public debt is equivalent to the total U.S. GDP, and annual interest payments have reached about $1 trillion, exceeding the defense budget. The U.S. Treasury system can be traced back to the debt consolidation reforms championed by Alexander Hamilton in 1790, when the federal government assumed responsibility for the war debts of the individual states and pledged to repay them in full, thereby establishing the U.S. credit system and laying the foundation for the global status of the U.S. dollar and U.S. Treasuries. Today, U.S. Treasuries are regarded as one of the core assets of the global financial system, underpinning the U.S. dollar’s status as a reserve currency and held extensively by central banks and financial institutions worldwide. As the debt continues to expand, market concerns about long-term sustainability are intensifying. According to calculations by the Penn Wharton Budget Model, when the debt-to-GDP ratio exceeds approximately 210%, the fiscal system may face unsustainable risks. Currently, this ratio stands at about 100% in the United States, and the Congressional Budget Office projects it could rise to 175% by 2056. Analysts believe that, given rising healthcare spending and a continuously widening fiscal deficit, this risk threshold may be reached sooner than expected, and the long-term stability of the debt structure is facing increasingly stringent market and policy tests.
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Source:Odaily · Source Link
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