US National Debt Surpasses $37 Trillion Amid Rising Interest Costs

The U.S. national debt has officially surpassed the $37 trillion mark, exceeding 120% of the country's GDP, marking a historic milestone and raising concerns about fiscal sustainability and economic growth. This surge is driven by ongoing government spending, tax cuts, pandemic relief measures, and rising interest costs, with annual debt servicing payments now exceeding $700 billion and projected to rise further, potentially consuming a significant portion of federal revenue by 2035. Economists warn that this escalating debt burden could lead to inflation, job losses, reduced household purchasing power, and a diminished investor confidence in U.S. government bonds, which might threaten the dollar's status as the world's reserve currency. The fiscal challenges are compounded by recent legislation expected to add trillions to the debt over the next decade, complicating congressional efforts to balance spending and revenue. The growing debt also has global implications, influencing capital flows toward safe-haven assets including gold and cryptocurrencies as investors seek alternatives amid economic uncertainty. Meanwhile, domestic economic impacts include potential shrinking of the U.S. economy by hundreds of billions over the next decade and increased costs of living for American households.