US National Debt Hits Record $34 Trillion: Cryptocurrency in Focus

• US National Debt Hits Unprecedented Level of $34 Trillion
• A Race Against Time for Congress
• Debt-to-GDP Ratio
• The Impact of Inflation and Rising Interest Rates
• Future Projections for Interest Payments

US National Debt Hits Unprecedented Level of $34 Trillion

As per the latest data from the Treasury Department, the national debt of the United States has reached a staggering $34 trillion as of last Friday. This milestone marks the first time that the country's debt has crossed this figure.

A Race Against Time for Congress

This record-breaking debt comes at a crucial time when the Congress is scrambling to finalize essential funding bills to avoid a government shutdown. Projections from the Congressional Budget Office anticipate the national debt to nearly double in size in the coming three decades.

Debt-to-GDP Ratio

By the end of 2022, the national debt had risen to about 97% of the country's gross domestic product (GDP). If current laws remain unchanged, it is projected that this ratio will surge to an alarming 181% by the end of 2053.

The Impact of Inflation and Rising Interest Rates

The persistent inflation battle in the country further complicates the national debt crisis. Multiple interest rate increases in 2023 have exacerbated the situation for Americans, making it harder to live under the debt crisis. Rising interest rates also mean that the federal government's borrowing costs for its debt will see an increase.

Future Projections for Interest Payments

Moreover, the interest payments on the $34 trillion national debt are projected to triple from nearly $475 billion in fiscal year 2022 to $1.4 trillion by 2032. By 2053, the interest payments are expected to skyrocket to a whopping $5.4 trillion.

Edited by Jonathan Stoker