U.S. National Debt Tops $40 Trillion, Doubling in Less Than a Decade

Federal debt tops $40 trillion. Here's what it means for your wallet The ballooning debt puts upward pressure on interest rates for consumer loans. The United States' gross national debt surpassed $40 trillion this week for the first time, meaning the nation’s financial hole has doubled in size in less than a decade. The ballooning federal debt complicates the government's finances but it also holds consequences for the pocketbooks of everyday people, some analysts told ABC News. Upward pressure on interest rates for government debt, for example, could in turn hike borrowing costs for businesses and consumers, making it more expensive to take out a mortgage or pay off a credit card, they said. Meanwhile, the economy could slow as borrowing costs grow and federal spending is diverted toward interest payments, squeezing consumers tasked with paying off the higher loan rates. “This is something that impacts Americans right now,” Shai Akabas, vice president of economic policy at the Washington, D.C.-based nonprofit think tank Bipartisan Policy Center, told ABC News. To be sure, experts differ over the risks posed by the nation's growing debt. Some economists dismiss concerns as overblown, while others acknowledge that while the debt threatens U.S. fiscal health, the issue shouldn't be a concern for policymakers during lean economic periods. “There’s no need to panic at this point,” said Charley Ballard, a professor of economics at Michigan State University, though he acknowledged the ongoing effects for everyday people. “The federal debt is one of the things putting upward pressure on interest rates. It’s not by any means the only thing, but it’s one of them," Ballard told ABC News. It's been more than 20 years since the federal government's last budget surplus, which occurred in 2001. Every year since then, the U.S. has spent more money than it has brought in, deepening the nation's debt -- the result of a combination of tax cuts and spending increases overseen by Democrats and Republicans both. The rising federal debt is expected to push up interest rates as the government issues ever-larger numbers of Treasury bonds in an effort to fund federal spending. As a result, creditors would likely demand higher yields as a safeguard against increased risk that the U.S. may not repay the debt. Interest rates on long-term government debt help set borrowing costs for everything from mortgages to auto loans to credit cards. If they rise, consumers face higher loan expenses and greater risk of default, according to some analysts. Still, experts noted, Treasury yields respond to a range of factors beyond the federal debt, including inflation expectations. “There’s no question that higher debt leads to higher interest rates,” Kent Smetters, a professor at the University of Pennsylvania's Wharton School of Business who formerly worked at the Congressional Budget Office, the nonpartisan agency that provides budgetary information to Congress, told ABC News. A change in fiscal policy, however, could ease the pressure on interest rates over time, Smetters said. In the meantime, the upward pressure on interest rates is expected to drag on economic output and pull back inflation-adjusted wage growth, some analysts said. Last year, the Penn Wharton Budget Model, a nonpartisan fiscal policy analysis affiliated with the University of Pennsylvania, predicted that the average U.S. wage would end up 3.4% lower over the next 30 years as a result of President Donald Trump's signature One Big Beautiful Bill spending measure, signed into law July 4, in part due to added debt. Academics and advocates, however, have been raising alarm about the national debt for decades -- with no crisis so far to show for it. As the government has piled on debt, demand for U.S. Treasury bonds has remained robust, owing in large part to the country's unique position as the world's top economy and the issuer of the global reserve currency. That strong demand has kept interest rates relatively low. Analysts who spoke to ABC News acknowledged the difficulty in predicting when the most severe effects of the ballooning debt may materialize but warned that regardless of the answer, the current trajectory is unsustainable. In any case, they added, Americans’ finances are already feeling the pinch. “The debt is already affecting people’s cost of living today and their ability to afford their necessities,” Akabas said. “That’s the impact that deserves the most attention now.”

!US Debt Toggle Play US debt tops $40 trillion, Americans left with the bill The US national debt has officially surpassed $40 trillion for the first time in history, and it’s growing fast. Al Jazeera’s @EmmaWithrow explains how we got here, who America owes that money to, and why it matters. Published On 21 Aug 202621 Aug 2026 Save Click here to share on social media share-nodes Share googleAdd Al Jazeera on Googleinfo More from the same show Inundated Philippine communities seek answers over flood control funds !Inundated Philippine communities seek answers over flood control funds Video Duration 01 minutes 32 seconds play-arrow01:32 Palestinian teen shot and killed in West Bank attack, UN responds !Palestinian teen killed Video Duration 01 minutes 24 seconds play-arrow01:24 Peru rescues people trapped by landslides on highway for nearly a week !Peru rescues people trapped by landslides on highway for nearly a week Video Duration 00 minutes 55 seconds play-arrow00:55 Several killed in Russia’s ‘double-tap’ drone strike on Ukraine mall !Several killed in Russia’s ‘double-tap’ drone strike on Ukraine mall Video Duration 01 minutes 13 seconds play-arrow01:13 Trump: ‘We’re seeing what happens’ on sanctions for Iran !Trump Video Duration 00 minutes 50 seconds play-arrow00:50 One killed, three wounded in sword attack at Swedish high school Video Duration 01 minutes 34 seconds play-arrow01:34 Global Sumud Flotilla joins Albania’s anti-resort protest Video Duration 01 minutes 32 seconds play-arrow01:32 [](https://www.aljazeera.com/) Your browser does not support the audio element. audio-rewind audio-play audio-forward * audio-volume-mute close You rely on Al Jazeera for truth and transparency We and our 1013 partners store and access personal data, like browsing data or unique identifiers, on your device. Selecting Allow all enables tracking technologies to support the purposes shown under we and our partners process data to provide. Selecting Reject all or withdrawing your consent will disable them. If trackers are disabled, some content and ads you see may not be as relevant to you. You can resurface this menu to change your choices or withdraw consent at any time by clicking the Manage preferences link on the bottom of the webpage. Your choices will have effect within our Website. For more details, refer to our Privacy Policy. We and our partners process data to provide: Use precise geolocation data. Actively scan device characteristics for identification. Store and/or access information on a device. Personalised advertising and content, advertising and content measurement, audience research and services development. List of Partners (vendors) Allow all Reject all Manage preferences

Total United States debt has surpassed $40 trillion for the first time in history, according to a Department of the Treasury update on Wednesday. Ballooning debt, especially during President Donald Trump’s second term, which began in January last year, has raised concerns about a looming fiscal crisis for some time, with economists fearing a toxic combination of heavy borrowing, increased spending and lower taxes could land the world’s biggest economy in crisis. Recommended Stories list of 4 items- list 1 of 4CEO pay skyrockets in 2025 amid growing income inequality in the US - list 2 of 4Inside the UK’s ‘stressful’ cost of living crisis Burnham hopes to tackle - list 3 of 4UAE trade embargo could shut Iran’s key economic escape route: Here’s why - list 4 of 4US national debt passes record $40 trillion The rising US debt comes despite Trump’s championing of cost-cutting and efficiency as a hallmark of his second term, with his Department of Government Efficiency (DOGE) initiative slashing between 250,000 and 350,000 federal jobs and cutting global aid since the start of last year. In May 2023, the Congressional Budget Office (CBO) predicted that the US would reach the $40 trillion mark in 2028. Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), a budget watchdog, said in a statement, “$40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another.” Here’s what we know about why US debt is rising, and why it matters: How fast is debt rising? US debt is growing much faster in the 2020s than it did in previous decades. Total debt, which includes debt owed to others and what the government owes itself, has doubled since January 2017, when Trump began his first term as president. US debt at the time was $19.95 trillion. During Trump’s first term, public debt rose by $7.8 trillion, most of it because of the cost of the COVID-19 pandemic response. Since his return to office in January 2025, debt has grown by $3.8 trillion, bringing the total to $11.6 trillion across his two terms so far. Under Joe Biden’s administration from 2021 to 2025, the government continued to borrow and spend heavily in response to the pandemic; debt rose by $8.4 trillion. US debt hit $39 trillion in March this year, meaning it took fewer than five months to pile on an additional $1 trillion in debt. By comparison, it took close to 200 years for total US debt to cross $1 trillion for the first time in 1981, according to an analysis by CRFB, although $1 trillion in 1981 would be worth $3.67 trillion in real terms today, after inflation is taken into account. The CBO estimates that debt will rise from 101 percent of gross domestic product (GDP) in 2026 to 120 percent in 2036. That is well above the previous US record of 106 percent after World War II. Why is debt ballooning? The soaring US debt “is an inevitable result of our demands for endless tax cuts, benefit expansions, and defence investments, and our refusal to address escalating Social Security and Medicare shortfalls,” Jessica Riedl, a budget and tax fellow at the Brookings Institution think tank, told Al Jazeera. “We can blame politicians, but very few voters will back up their deficit concerns with a willingness to personally accept new taxes or benefit reductions. Sacrifice is reserved for our political opponents.” Here are some of the specific factors that experts say have contributed to the fast-rising US debt. Crisis spending There have been two major crises in nearly two decades, during which governments have needed to borrow and increase spending. The 2007-09 recession was the first crisis, while the second was the 2020-23 COVID-19 pandemic, which is linked to about one-third of the debt run up since 2017, as borrowing under both the Trump and Biden presidencies intensified. Low tax revenue Analysts say another reason for rising borrowing is that tax and other revenues are not keeping up with spending, especially as the US is spending more to fund pensions and healthcare for an ageing population. Experts say Democratic and Republican administrations alike have failed to rein in spending or raise taxes to close this gap. The US spends about $7 trillion annually, with about 60 percent of that going to Social Security Administration (SSA) payments, health insurance including Medicare and Medicaid, and veterans’ care. Revenues are inadequate to meet these expenses. For example, in July, the US brought in $334bn in individual income taxes, social insurance, corporate taxes and others, according to the Treasury Department. However, it paid out $766bn, almost double the revenue, in social security, health insurance, national defence and interest payments. Rising interest rates Interest rates remained low until the pandemic hit, at which point the Federal Reserve raised rates to fight inflation. Now, the US is paying about $1.1 trillion annually to service its debt, slightly more than it spends on defence. In the first 10 months of the 2026 budget year, interest costs have also eclipsed health insurance spending and are now the second-largest slice of spending after pensions. The US spends between $1.8 trillion and $2 trillion per year on federal retirement benefits – Social Security – and state or local public pensions combined, according to data from analysis group USA Facts. What tax cuts has Trump introduced? Despite these rising costs, Trump has implemented deep tax cuts for businesses, starting with his Tax Cuts and Jobs Act of 2017 during his first term, which slashed the corporate tax rate from 35 percent to 21 percent. He followed that up in 2025 with his “One Beautiful Bill Act”, permanently entrenching the 2017 law. Although the bill also cut Medicaid spending by 12 percent, it raised the debt ceiling by nearly $5 trillion to allow for this. At present, individual income taxes make up roughly half of federal revenues, compared with only 9 percent from corporate income taxes. In between the two Trump presidencies, the Biden administration also spent heavily on infrastructure investment and clean energy subsidies. Who does the US owe money to? Public debt borrowed from domestic and foreign investors makes up 80 percent – roughly $32 trillion – of the gross debt, according to Treasury data. About $21 trillion of this public debt is owed domestically, to a variety of creditors including the Federal Reserve ($4.528 trillion), which buys and sells Treasury securities to influence federal interest rates and manage the money supply, according to analysis by the Peter G Peterson Foundation. Other creditors are mutual funds ($5.195 trillion), pension funds ($1.135 trillion), state and local governments ($1.636 trillion), commercial banks and depository institutions ($2.083 trillion) and other corporate and individual lenders ($6.660 trillion). Internationally, the US is in debt to several countries and private investors. In 1970, total foreign debt holders accounted for 5 percent of gross debt, but by 2025, they made up 32 percent. That means while they are helping boost US economic activity, more of the country’s income is being sent abroad in the form of interest payments. By 2025, the US owed Japan $1.203 trillion, the United Kingdom ($889bn), China ($683bn), as well as owing more than 30 other entities. Separately, another 20 percent of the gross national debt – about $8 trillion – is owed intra-governmentally and therefore does not affect overall finances. What does rising debt mean for the US economy? Analysts say the rising debt could potentially create an economic crisis for the US, in the form of hyperinflation or higher interest rates, for example, if it goes unchecked. As more debt piles on, there is a growing risk that private investment will fall because of safety concerns, and as a consequence, economic growth could slow down. “We’re already paying the cost. This debt is slowing growth, pushing up interest rates, and worsening inflation,” Riedl of Brookings said. In 2026, the US is expected to spend 19 percent of federal tax revenues on interest payments. That share is expected to rise to 20 percent in a decade and 50 percent in three decades, “even under the rosiest scenarios,” she added. “The longer we wait to make the difficult fiscal decisions, the more painful and drastic those reforms will be.” Lawmakers may eventually be forced to respond with painful austerity measures such as higher taxes, analysts say. Social safety net programmes could also be at risk. It could take years to resolve, experts warn, and the consequences could be intergenerational, with young people forced to pay more for many years. The rest of the world would be affected too: the US is a cornerstone of the global economy, and a crisis there will likely hurt global markets. The first correcting step, MacGuineas of CRFB said, is to commit to zero new borrowing immediately. Lawmakers must also set up a bipartisan fiscal commission to scrutinise the issues, she said. With a commitment to keep taxes low and reduce spending, while also engaging in a hugely expensive war in the Middle East, this may be difficult to achieve, analysts say.

The US national debt now stands at $40 trillion The US national debt now stands at $40 trillion WASHINGTON (AP) — The national debt surpassed a record $40 trillion on Wednesday, a staggering milestone as defense costs, social programs like Social Security and Medicare and interest on the burgeoning deficit make up an enormous share of federal spending. The milestone figure was recorded just five months after the U.S. hit a record $39 trillion debt in March. It reached $38 trillion five months before that, in October. The unprecedented $40 trillion figure highlights competing administration priorities, from boosting defense spending that the U.S. relies on to carry out President Donald Trump’s almost-6-month-old war in Iran to lowering the cost of gas and groceries. Kush Desai, a White House spokesman, said the Trump administration “has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America’s debt-to-GDP ratio trending in the right direction.” However, experts say the exploding debt and the latest record milestone are already affecting Americans’ pocketbooks by raising borrowing costs for things like mortgages and cars, lowering wages from businesses that have less money available to invest, and creating more expensive goods and services. “If we want to improve our living standards, today and for the next generation, now is the time for lawmakers to put our nation on a more affordable and sustainable path,” says Michael A. Peterson, CEO of the Peter G. Peterson Foundation, a think tank focused on U.S. fiscal challenges. The debt has exploded over several presidential administrations, as the nation’s leaders spend more money than it collects in taxes. In recent memory, the multi-year COVID-19 pandemic shut down much of the U.S. economy, where the federal government borrowed heavily during President Trump’s first term and under former President Joe Biden to stabilize the economy and support a recovery. More government spending was approved after Trump signed Republicans’ tax cut and spending legislation into law last year. Advocates for a balanced budget also warn that the long-term trend of borrowing more and paying more in interest will force Americans to face tougher fiscal tradeoffs ahead. “The federal debt is already raising the cost of living and choking out other spending and investment, threatening our economy and Americans’ long-term prosperity,” said Margaret Spellings, president and CEO of the Bipartisan Policy Center. “Our current fiscal trajectory is plainly unsustainable, and that’s the best-case scenario. AI disruption, a recession, global war, or any number of other events could quickly push us over the edge from a challenge into a full-blown crisis,” Spellings said in a statement. The U.S. is subject to a statutory debt limit, or a limit to federal borrowing, which Congress has the authority to set, adjust or abolish. The Bipartisan Policy Center estimates that the U.S. will most likely reach the $41.1 trillion debt limit sometime between late winter and mid-summer of 2027, requiring Congress to again vote on whether to raise or suspend it. The U.S.’ fiscal position stands as the worst among other developed countries, according to recent data analysis from the Organization for Economic Co-operation and Development

The Treasury Secretary Scott Bessent stated that there is a “very good chance” that the U.S. budget deficit under President Donald Trump would reach its peak. In an interview with CNBC on Thursday, Bessent said there is a “very good chance” the budget deficit had peaked under Trump. He also said that he, Trump, and Russell Vought, the director of the Office of Management and Budget, are among the federal leaders working on fiscal consolidation measures. This announcement came one day after the department’s extraordinary debt-buying announcement. Bessent also indicated that these efforts could potentially save hundreds of billions of dollars. “We’re going to be laser-focused,” he said. Despite the challenges, he expects that tariff revenues this year should be at the same level as in 2025 after the reintroduction of taxes. This time, he said, the revenues should not have to be returned to businesses. Also read: Steve Hanke warns that bond vigilantes are back, the 10-year yield could rise by 50 basis points: ‘Very bearish’ The U.S. budget deficit is concerning, with the federal government posting a record July deficit of $432 billion. The year-to-date deficit has widened to nearly $1.8 trillion, surpassing the level recorded at the same point last year. This situation has drawn criticism from various quarters, including Florida Governor Ron DeSantis, who attributed the Department of Government Efficiency (DOGE) failure to Congress’s failure to pass budget cuts. DeSantis voiced his view on the issue by stating: “The DOGE fought the swamp, and the swamp won.” The U.S. public debt has meanwhile surpassed the $40 trillion mark, more than doubling over the last decade and intensifying concerns about the country’s financial health. “There is nothing magical about the $40 trillion figure,” said the Secretary of the Treasury. “We can get out of this by growing.” Economist Peter Schiff criticized Bessent’s argument that the doubling of the national debt is less troubling because household net worth has also more than doubled. He argued that debt is a permanent obligation that must be financed and repaid, while household wealth can quickly decline, especially if higher interest rates trigger a drop in overvalued stocks and real estate. A@CNBCguest just dismissed the doubling of the national debt in ten years because household net worth more than doubled over that time. But the debt is a permanent obligation that must be serviced and repaid. Net worth, besides being overly concentrated, is transitory as it… — Peter Schiff (@PeterSchiff) August 20, 2026 Avertissement: This content was partially generated with the help of AI tools, then edited and published by Benzinga editors. Also read: Short-duration Treasury ETFs are safer as U.S. debt surpasses $40 trillion Photo with the kind permission of: Shutterstock

In a context of rising bond yields Bolsamania Reading time: 3 min The United States debt continues its upward trend and this week has surpassed 40 trillion dollars for the first time, according to data from the country’s Treasury Department. This increase in indebtedness occurs amid a rise in bond yields, even though the Treasury yesterday decided to double the volume of repurchase operations aimed at supporting liquidity in long-term nominal-coupon and maturity securities (segments of 10–20 years and 20–30 years). "First of all, it is worth noting that the U.S. national debt has surpassed the $40 trillion mark. Interest payments have become one of the largest line items in the federal budget, while persistent deficits imply that the country continues to accumulate debt as its interest bill grows," says Ipek Ozkardeskaya, an analyst at Swissquote Bank. She also notes that "Trump-era fiscal policy is not improving the outlook," since "instead of tightening economic policy and raising taxes, the Trump administration is betting on reducing the tax burden and attempting to cover the deficit through spending cuts and tariff revenue." "Thus, the fiscal situation in the U.S. remains as uncertain today (or even more) than yesterday, but the way the government is willing to manage its debt has changed, as has the weight of the Federal Reserve (Fed) in this scenario," she adds. In the short term, she believes the impact is "relatively clear," since "buying back a larger amount of long-term debt should ease pressure on long-term bond yields, benefiting households through lower mortgage rates and helping companies through lower financing costs."

The Minister of Finance Bessent doubles the buybacks of American long-term bonds in the face of soaring rates, information provided by Reuters 19/08/2026 23:16 ((Automated Reuters translation using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) * The Treasury increases the volume of its buybacks in the wake of a peak in 30-year bond yields, the highest in 19 years * This measure will support liquidity in long-term debt securities through a "solid backing," the Treasury says * Buybacks will rise by at least $14 billion in the current quarter, a modest increase relative to the outstanding debt (Rewriting of the text, addition of quotes, update of the public debt figure, addition of Trump comments to paragraphs 9 and 10) by David Lawder and Tatiana Bautzer The U.S. Treasury announced on Wednesday measures to support long-term bonds, intended to curb, at least temporarily, the rise in yields that had unsettled global investors. This decision to double the volume of buybacks of long-term securities follows a strong wave of bond selling that propelled the 30-year Treasury yield to the highest level in 19 years. US30YT=RR at its highest since 2007, against the backdrop of fears of an imminent escalation of the United States–Israel–Iran conflict and growing concerns about the deterioration of the U.S. budget situation. The rise in bond yields is lifting borrowing costs, putting significant strain on households and businesses as well as financial markets and the federal budget. The total outstanding public debt surpassed $40 trillion on Wednesday. “I think this will have a huge impact on the long maturities,” said Dan Gottlander, Global Head of USD and CAD swap operations at Citi, adding that this development could prompt the U.S. Treasury to issue more short-term debt instead. “This obviously does not change deficits, and if you want to buy back long-term securities, you will still need to issue new securities,” Mr. Gottlander explained. “They could issue more Treasury bills, or also five- to ten-year notes.” The Treasury will double the volume of its buybacks of government debt securities with maturities from 10 to 30 years to bring it to at least $4 billion per operation. This increase relative to the initially planned $2 billion buybacks will apply to the 10–20 year and 20–30 year sectors, and will take effect from September 9 to November 4, according to the department in a press release. Yields had risen on Tuesday despite a $2 billion buyback operation of 20- and 30-year bonds planned for that day. The 30-year Treasury yield had reached its highest level in 19 years on Tuesday, at 5.34%, before retreating. The Treasury announcement led to a drop in this rate, which settled at 5.184% at the close. "This increase in buyback volume reflects the Treasury’s willingness to provide greater liquidity support in the long nominal segments, where market participants provide robust and steady backing, as evidenced by the large volume of high-quality offerings the Treasury regularly receives during its long-term buyback operations," the Treasury said in a release. President Donald Trump said Americans should not worry about volatility in the bond market. When asked by reporters whether Americans should be concerned, Mr. Trump replied: “No, I don’t think so.” HIGHER YIELDS, HIGHER COSTS Market analysts said the Treasury’s move reflected an awareness of pressures in the debt market that could become more problematic, increasing borrowing costs, keeping mortgage rates high, and risking broader disruption in financial markets and the federal budget. “I think they fear the consequences of yields of 5% or higher on long-term bonds, not only because it raises borrowing costs for the state but also for the private sector,” said René Albrecht, senior analyst at DZ Bank in Germany. “There are only three months left before the midterm elections.” The benchmark 10-year Treasury yield, US10YT=RR, was also down on Wednesday, slipping about 6 basis points to 4.66%. It was the second time this month that the U.S. Treasury Secretary, Scott Bessent, intervened to counter market moves after joining with Japan in an August 1 intervention in the foreign exchange market aimed at reversing the yen’s decline, which had recently hit its lowest level in 40 years against the U.S. dollar. "Mr. Bessent is once again showing strategic acumen as an activist Treasury secretary—smacking short positions on bonds with the surprise announcement of an enhanced buyback program, a day in August characterized by thin liquidity and a lull in prior unilateral bets on higher yields," Evercore ISI analysts said in a client note. But they also questioned the durability of the impact of this measure, given that the Treasury still has to finance a “tidal wave” of maturing debt and deficits. Thomas Simons, chief US economist at Jefferies in New York, said that this surprise buyback announcement disrupted the Treasury’s tradition of communicating coherently about “regular and predictable” debt issuances, adding that the decision appeared to be “made on the fly.” A SMALL PART OF A MASSIVE DEBT VOLUME This $2 billion increase is paltry compared to the Treasury debt market, which stood at $32.2 trillion on Monday, and the roughly $5.5 trillion of 20- and 30-year bonds outstanding as of July 31. There were $16.2 trillion of unredeemed Treasury notes outstanding, issued for maturities ranging from two to ten years. For two years, the Treasury has been conducting scheduled repurchases of older issues before their maturity dates to provide liquidity support to these notes, bills, and so-called “off-cycle” securities. The next buyback operation currently planned for 20- and 30-year bonds is set for September 24, while a buyback of 10- and 20-year bonds is planned for September 10. In its quarterly refinancing announcement released earlier this month, the Treasury said it would buy back up to $69 billion of Treasury securities, across all maturities, between August 6 and November 5. Three more buyback operations of 20- and 30-year bonds and four of 10- and 20-year bonds are planned during this period, adding at least a further $14 billion of liquidity support and bringing the total maximum buybacks to $83 billion. Investors have been reassured by the Treasury’s willingness to act. “This does not solve the underlying problems related to deficits, inflation, or the supply of Treasury notes,” said Anshul Sharma, Director of Investments at Savvy Wealth in New York. “But it buys time and, perhaps more importantly, shows that the Treasury has tools at its disposal and is prepared to use them when market conditions require.”

The national debt topped $40 trillion, according to Treasury Department data released on Wednesday, representing a fiscal milestone that underscores the federal government's mounting borrowing and interest costs. The Treasury Department's daily financial report shows that the nation's debt reached $40.05 trillion on August 18, more than double its level in 2017. The federal debt has ballooned because government spending is outstripping revenue, forcing the U.S. to borrow more money to cover the shortfall. "We've been running deficits for the last 26 years, and we've basically ignored a lot of the structural challenges that exist in our budget that are very well known," Michael Peterson, CEO of the nonpartisan Peter G. Peterson Foundation, told CBS News. "It's clearly been accelerating because, like any debt problem, the longer you ignore it, the worse it gets." As the government continues to borrow, interest payments are consuming a larger share of the nation's spending, creating a compounding effect that further fuels the debt. The U.S. government now spends more on servicing its debt than on national defense or Medicare. Analysts say the nation's debt growth isn't likely to slow. "We're going the wrong way," said Dean Baker, the co-founder of the economic think tank Center for Economic and Policy Research. He cited the increase in military spending, which he said has exacerbated the country's fiscal burden. The Peterson Foundation estimates that the national debt could reach $50 trillion in six years if the country does not make spending or tax reforms. What is driving up the federal debt? Net interest costs, which approached $1 trillion in 2025 and accounted for nearly 14% of the nation's spending, are only part of the problem. Several other factors have fueled the national debt, with economists holding differing opinions on the primary drivers. The number of people collecting benefits from Social Security and Medicare has increased as the U.S. population ages, making the programs more expensive, while other spending has also increased, such as on interest payments. At the same time, a combination of tax cuts over the last two decades has decreased the nation's revenue. The Congressional Budget Office estimates that the Trump administration's One Big Beautiful Bill, passed last year, will add $4.2 trillion to the national debt through fiscal year 2034. While policy decisions have contributed, the debt problem can't be tied to one specific administration, Peterson told CBS News. "Many administrations and many Congresses have taken steps in the wrong direction," he told CBS News. Larger economic crises, including the Great Recession of 2008 and the COVID-19 pandemic, have also triggered spikes in the nation's debt, as the Treasury Department shows. Analysts told CBS News that the rising federal debt could hinder the country's ability to handle future economic shocks. "AI disruption, a recession, global war or any number of other events could quickly push us over the edge from a challenge into a full-blown crisis," Margaret Spellings, president and CEO of the Bipartisan Policy Center, a Washington, D.C.-based think tank, said in an email. What does the federal debt mean for you? The public holds about 80% of the nation's debt, according to the Peterson Foundation. Of that, more than two-thirds is held by domestic lenders such as mutual funds and the Federal Reserve System, while foreign investors hold the rest. Taxpayers could also bear the brunt of rising federal debt because as the government issues more Treasury securities to fund government spending, it must offer higher yields to attract investors. That could contribute to higher interest rates for mortgages and other credit products. "If the Treasury rate is going up, that means your mortgage rate is going up, your car loan is going up, your credit card rates are going up," Peterson said. Higher interest payments can also make it more difficult for the federal government to find the money to fund core programs, a phenomenon Peterson referred to as "crowding out." "It's typically called crowding out when the interest costs represent such a big chunk of the budget that it puts downward pressure on every other program across the budget, and puts upward pressure on taxes because you know we need more money in the system to cover these interest costs," he said. Not everyone agrees that the nation's soaring debt could pose an economic threat. Baker, for one, is less concerned about the consequences, noting that a strong U.S. economy should allow the federal government to continue to shoulder the growing financial burden. The more immediate economic threats facing the U.S. are tariffs and the Iran war's impact on prices, he said. He also warned that investors could pull their money out of the U.S. if what some believe is an were to burst."If people just become wary of U.S. markets and the U.S. economy, they might pull their money out," he said. "So I think there is an issue with foreign money leaving the U.S. but the government debt isn't the biggest factor, and probably not even a major factor."

The U.S. public debt surpassed for the first time in its history the amount of 40 trillion dollars, according to data released this Wednesday by the Treasury Department. According to its daily publication—the so-called "Debt Calculated to the Cent"—the total liability of the U.S. Federal Government is 40.047 trillion dollars. This new figure arrives barely five months after surpassing 39 trillion, a sign of the acceleration in the debt-accumulation pace. Despite the record, in the Washington swamp there is no urgency to curb the debt: the Republican dogma does not believe in tax increases to boost tax revenue; and, on the other hand, approving cuts in sensitive areas like Social Security, health, or pensions—some of the budget’s largest line items—is politically sensitive for both parties. Moreover, the 40-trillion mark comes amid a context of rising costs for debt. Last week, the Treasury auctioned US$25.0 billion at a rate of 5.216%, the most expensive since 2001. According to Bloomberg, interest costs on the debt are the third-largest item in the U.S. budget, after health and Social Security. In 2026, interest costs are projected to reach US$1.17 trillion (a 15% year-over-year increase), two months before the end of the fiscal year. Additionally, the yield on 30-year Treasury bonds has trended upward over the past five years, which could feed a vicious circle in which investors demand ever-higher rates, which in turn impact U.S. debt. The U.S. fiscal deficit already reaches 6% of GDP, according to Bloomberg’s calculations, and is likely to keep growing in the context of an election year: Trump is considering new tax cuts to appeal to voters who have suffered the economic impact of the war with Iran and rising oil prices. It was also disclosed that he could announce more defense spending. Why the debt increased: This is mainly because the Trump administration stopped collecting tariffs on imports from around the world after the Supreme Court ruled in February that they were illegal. Currently, the administration’s spending level exceeds its fiscal revenue by about two trillion dollars annually. Add to this the large tax-cut law that Trump pushed last year, which is expected to increase that annual deficit above 4 trillion over the next decade. Among other factors, the debt was also accelerated by the financial crisis and the Covid pandemic; Joe Biden’s American Rescue Plan; the wars in Iraq and Afghanistan; Trump’s first-term tax cuts; and Barack Obama’s Affordable Care Act. Bessent announced the expansion of the bond buyback program: The new debt figure was announced hours after the Treasury announced an expansion of a longer-term security buyback program, which led to a drop in yields. On Wednesday, the portfolio led by Bessent announced that it would double the volume of its bond buyback operations, to at least US$4.0 billion, in order to “support liquidity.” The buyback operations target maturities ranging from 10 to 30 years. Following the announcement, 30-year bond yields fell by 10 basis points, to 5.18%, after hitting their highest point since 2007. The buyback program is part of what last year Bessent called the “broad set of tools” that the Treasury can deploy to address disruptions in the Treasury bond market. With information from EFE and Bloomberg. About the author See also Clarín Newsletter

Government debt has eclipsed $40 trillion, passing yet another staggering benchmark for red ink, according to the Treasury Department. The total U.S. IOU hit $40.05 trillion as of Tuesday, some four and a half years after topping $30 trillion. Years of escalating budget deficits, pushed higher by stimulus funding during the Covid pandemic, have seen the public share of the debt near 100%. In the most recent monthly accounting of U.S. finances, Treasury reported a $432.3 billion deficit in July, the highest monthly total since March 2021. The year-to-date shortfall is nearing $1.8 trillion, higher than the same period a year ago. Ten years ago, the debt level was at $19.4 trillion. The U.S. fiscal situation has had market ramifications, which have played out recently and likely pushed the Treasury Department into announcing Wednesday that it is upping the size of its repurchases at the long end of the yield curve. Treasury yields have surged since late June, hitting levels not seen since before the global financial crisis that ultimately saw the Federal Reserve take benchmark rates to near zero. The Fed also instituted an aggressive bond repurchasing program in late 2008 that helped suppress rates. However, concerns over the debt-and-deficit situation, along with surging corporate bond issuance associated with artificial intelligence investments, rising term premia and worries over the Fed's commitment to inflation fighting, have been a tail wind for yields. With the Fed hesitant to move on rates absent more information on inflation and the labor market, the government has seen its borrowing costs soar. Interest on the debt has totaled nearly $1.2 trillion this year and is the largest budget expenditure outside of Social Security and Medicare. Correction: The debt total passed $40 trillion on Tuesday. An earlier version misstated the day.

Treasury Secretary Scott Bessent insisted Thursday that he has multiple weapons at his disposal to quell liquidity problems in the government debt market and restore calm. While that's true in itself, a two-pronged effort he has deployed so far — accelerated buybacks and an effort to talk the market into accepting the rationale — has met with little success. The Treasury announcement Wednesday that it would at least double its bond buybacks starting in early September sent yields tumbling as investors applauded a backstop for longer-maturity government bonds. However, yields at the long end quickly rose again Thursday as market experts showed skepticism at whether the push would succeed against a bevy of factors working against Treasurys. Then on Thursday, Bessent appeared on CNBC with assurances that the intervention was merely aimed at providing market liquidity and not at trying to control the yield curve. While yields initially nudged lower, they quickly rebounded amid criticism of how the prior day's announcement was rolled out, leading one analyst to characterize the appearance as having "minimal impact" on the market pressures. Still, that leaves Bessent with a variety of options that he may yet choose to deploy. "We have a big toolkit," the Treasury chief said. "Part of it is signaling here and to show that we believe that the yields don't reflect the underlying fundamentals." Yet markets are still worried, and criticism rose that the size of the buybacks, which Bessent confirmed could exceed $4 billion, would be rendered ineffective in such a large market. Evercore ISI analyst Krishna Guha called the plan "a weak form of Operation Twist," or a Federal Reserve initiative that swaps longer-term notes and bonds for short-term bills. The move "in itself will have little enduring impact and could backfire if it is seen as signaling concern about the ability to fund longer-term at acceptable cost," he said. The interview "had minimal impact on the bond market," he added. That leaves Bessent with a handful of other options, none guaranteed to work and each carrying its own risk: - Bigger and more frequent buybacks: Bessent simply could say the initial round of stepped-up buybacks went so well that Treasury is going larger. - Smaller auctions: The department simply could cut down on the level of longer-dated debt it is issuing and shift it into shorter-term bills, an approach Bessent criticized strongly when it was employed by his predecessor, Janet Yellen. - Changing the maturity composition of outstanding debt: This essentially would be a larger-scale version of smaller auctions and would require market participants to snap up shorter-duration — and lower-yielding — debt, a risky proposition. "Global investors know that struggling sovereigns often resort to shorter dated issuance. We think the US is different from all others, but it is not different without limit," Guha, who is Evercore's head of economics and central bank strategy, said in a client note. - Invoking the 'Bessent put': Markets already are using the term to describe the Treasury moves, and the secretary can use his tools in an unpredictable manner to keep anyone betting against U.S. debt off guard. "We think this is much more suited to the type of tactical guerilla operation to catch shorts off-guard, impose losses and create a perception of two-sided risk that may slow down a fundamentals-driven move in yields and prevent overshooting — the smoothing version," Guha wrote. "The problem is that this may not have much lasting impact on where yields are a few months from now." Whichever route he chooses — and he could also choose to do nothing and let the markets sort it out — Bessent could face credibility challenges from a market already growing skeptical and leery of the challenges Treasurys are facing. Jefferies' chief U.S. economist, Thomas Simons, complained that the buyback announcement itself was improper. He pointed out that the move came two weeks after Treasury announced its quarterly refunding plans, during which it gave no indication that it was considering changing the buyback scheme. "This breaks with Treasury's long-held strategy of making 'regular and predictable' announcements, and using the Refunding to announce almost all of their policy changes and guidance," Simons wrote. "We do not think it is hyperbole to say that this break in communication strategy reduces the overall credibility of their guidance." Moreover, Simons added that "the sloppy wording of [the] headline on [the] release gave the impression that this was a hastily made decision." The challenge, then, for Bessent could be that efforts to suppress longer-end yields could give investors another reason to demand more compensation. Along the lines of what Bessent told CNBC on Thursday, not all of the factors at play are fundamental. They include rising competition from corporate bond issuance as well as suddenly attractive yields of other sovereigns including Japan; a correlation with oil prices that in turn increases inflation fears; and increasing term premiums, or the extra yield investors are demanding. To combat those problems, Bessent could seek cooperation with the Federal Reserve. Though Fed Chairman Kevin Warsh has stressed the importance of letting the market set rates, Bessent suggested Thursday that the two entities "would work together" in dealing with complications in the bond markets and as the central bank manages its own Treasury holdings. The various moving parts come during a paradigm shift in the government debt markets, both in the U.S. and globally. "There has also been a structural shift in who buys U.S. government debt," said Atsi Sheth, chief credit officer at Moody's Ratings. "As central banks shrink their balance sheets and traditional duration buyers reach the limits of how much additional issuance they can absorb, new buyers, such as leveraged hedge funds running relative-value strategies, are playing a bigger role." On top of all that, the U.S. faces a daunting fiscal situation in the form of a deficit-to-GDP ratio of nearly 6%, or about triple its average from the end of World War II until the Covid pandemic. That is compounding a problem with the national debt, which just surpassed $40 trillion. With President Donald Trump hungry for tax cuts and Congress showing few signs of spending restraint, the fiscal problems are likely to mount. To that end, Bessent said he and Russell Vought, head of the Office of Management and Budget, will meet soon to discuss "fiscal consolidation," generally understood to refer to efforts to reduce red ink. "It's that combination of the deficits, the borrowing needs, inflation expectations, not really knowing what future Fed policy is going to be, and the sustainability of being able to issue higher, ever higher, levels of U.S. Treasury debt, and what rates those need to be at," said JoAnne Bianco, senior investment strategist at BondBloxx. "There's just the idea that there needs to be a higher risk premium for all the issuance."

The United States is digging itself into an ever-deeper debt hole. The federal debt hit a record $40 trillion on Tuesday, according to the Treasury Department. It’s an inauspicious milestone that will have consequences for Americans, businesses and the government for years to come. (The Treasury Department’s data on the federal debt is released on a one-day delay.) While the nation has long carried a significant amount of debt, there are several recent trends that have budget and financial markets experts even more concerned. The tab has been growing more swiftly in recent years; interest payments on the debt have ballooned as interest rates and borrowing have risen; and all this is happening in relatively good economic times. “On our current path, we’re going to be at $50 trillion in just six years. If you look backward, we were at $20 trillion less than 10 years ago,” said Michael Peterson, CEO of the Peter G. Peterson Foundation, a fiscal watchdog group. “We’re really putting our economy and our country’s future in jeopardy.” Several factors are contributing to the skyrocketing debt load. A big one is that the nation is aging, with roughly 10,000 Baby Boomers retiring every day and senior citizens living longer. That means that the federal government is shelling out ever more on Social Security and Medicare. These bedrock programs are on even shakier fiscal ground without enough workers to support the burgeoning number of beneficiaries. Also, over the last few decades, Congress has passed multiple packages that cut taxes and increased spending, including the Tax Cuts and Jobs Act of 2017 and the One Big Beautiful Bill Act of 2025 under President Donald Trump, and several Covid-19 pandemic relief bills under Trump and former President Joe Biden. These measures are projected to increase the federal debt by trillions of dollars over time. The $40 trillion milestone is hitting sooner than was expected even a few years ago. The Congressional Budget Office projected in May 2023 that the US would cross that threshold in fiscal year 2028. The size of the debt, and the speed at which it is rising, is cause for concern, experts say. The national debt rose $1 trillion in just the past five months, according to Treasury Department data. And the federal government’s spending continues to outpace the revenue it collects. Already, the government has racked up a $1.8 trillion deficit for the first 10 months of this fiscal year, which ends September 30. Soaring interest payments The mounting debt, along with rising interest rates, has led to an explosion in interest payments the federal government has to shell out. For years, low interest rates enabled the government to borrow freely. But that came to an end a few years ago when the Federal Reserve began raising interest rates to combat pandemic-era inflation. Interest payments are expected to top $1 trillion this fiscal year – a record level. Those costs have more than tripled over the past five years and are now neck and neck with Medicare as the government’s second-largest expense behind Social Security, said Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, a watchdog group. That means the US is spending more on interest payments than on national defense and 50% more than on children’s programs. The interest payment obligation makes it more difficult for the government to support other federal programs and priorities. “We’re spending significantly more to service past debt than to invest in our future,” Goldwein said, adding that “Our debt is begetting more debt. It creates a vicious cycle.” Although former Federal Reserve Chair Jerome Powell and others have said the US is on an “unsustainable fiscal path,” Congress has shown little appetite in recent years to address the nation’s unbalanced finances, which has led to downgrades of its credit ratings. Republicans on Capitol Hill raised the debt limit by $5 trillion last year, as part of the One Big Beautiful Bill Act, which means lawmakers likely won’t have to contend with the US hitting the debt ceiling until sometime in 2027, experts said. The debt ceiling has prompted Congress to review its spending levels at times, most recently in 2023. Impact on bond market The mounting national debt matters for the bond market and the interest rates that set borrowing costs across the economy. The 30-year US Treasury yield on Tuesday hit its highest level since 2007. The 10-year yield traded near its highest level of Trump’s second term. Yields have climbed this year as investors assess a range of factors including inflation nerves, rising government deficits, increased supply of corporate bonds and uncertainty about the Federal Reserve’s path for interest rates. As the United States slips further into a debt hole, investors are demanding greater compensation for the risk of lending to the government. Bond yields, which influence borrowing costs across the economy, are rising amid this backdrop. The 10-year US Treasury yield influences mortgages rates, auto loans and rates for business loans. Higher yields translate into tighter financial conditions, which can weigh on consumers and restrict business investment. Higher yields also mean higher borrowing costs for the government, making it most expensive to pay down the mounting national debt. “$40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement. “The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad,” MacGuineas said. The Treasury Department on Wednesday announced it would increase its buybacks of long-term bonds in the coming months. Analysts said it reflects the Trump administration’s concern about rising yields and how they could impact affordability as well as the ability to pay down the debt. An auction for 30-year Treasuries earlier this month saw the highest yield since 2001 – a sign that investors are demanding more compensation to hold US debt. In 2025, Moody’s downgraded US debt, stripping the United States of its last perfect credit rating. Despite being downgraded, US debt is still ranked a notch below perfect and ahead of debt from major economies like France and Japan. Other governments are also experiencing similar issues. In the United Kingdom, France, Germany and Japan, government bond yields are trading at or near multi-year highs as investors reckon with concerns about spending and deficits.

The US debt breaches the historic threshold of 40,000 billion dollars New data released by the U.S. Treasury indicate that the United States debt has crossed a historical level, now exceeding 40 trillion dollars. A figure that has more than doubled in less than a decade… The US debt surpasses 40 trillion dollars While the U.S. bond market is currently going through a difficult period, the U.S. Treasury has just announced the doubling of its purchases of long-term bonds. A decision that markets have welcomed very favorably, triggering a significant rebound in the value of major cryptocurrencies. However, this decision by the U.S. Treasury represents, above all, an operation to improve liquidity and the functioning of the bond market, and by no means an initiative aimed at reducing the United States’ debt… which they would badly need, however. 👉 For more — Discover our guides and tutorials to buy stocks And for good reason, the latest daily cash balance and debt statement issued by this government agency shows the total amount of U.S. public debt crossing the symbolic — and simultaneously historic — 40 trillion-dollar mark at the start of this week. The US debt now exceeds 40 trillion dollars According to the available details, this enormous sum represents the cumulative amount of Treasury securities held by the public (32,266 billion dollars) and debt assets held by entities and funds owned by the U.S. federal government, estimated at 7,782 billion dollars. Some view this situation with concern, with former President Donald Trump arguing that Americans should not worry, stating that the United States remains “a very powerful country.” And that this simple fact should lead to lower interest rates… which he has been trying to secure from the Fed for months. Kraken offers 15 ETH to 15 peopleShould we fear an imminent budget crisis? The figure is unprecedented, and it amounts to nothing less than a doubling of the U.S. debt over the last decade. Indeed, when Donald Trump first came to power in January 2017, the publicly declared debt of the world’s largest economy was estimated at 19,950 billion dollars, which was already a historical record at that time… An alarming situation, according to Maya MacGuineas, chair of the nonpartisan Committee for a Responsible Federal Budget, who told Reuters that “it is staggering to see how predictable budget decline can become for a global power.” This 40 trillion dollars of debt is not just a line in state accounts: its effects are felt across the economy and, one way or another, end up impacting citizens’ wallets. The more we borrow, the more we fuel inflation, the less fiscal room we have to fund other priorities, and the more vulnerable we become to emergencies on our soil as well as to upheavals abroad. And the situation could well deteriorate quickly, as foreign investors – who hold nearly a third of the Treasury bonds – have significantly reduced their demand over the past year. Invest in crypto-related stocks with XTB Source: Reuters Crypto Newsletter No. 1 🍞 Receive a daily briefing of crypto news by email 👌 Some content or links in this article may be advertisements or affiliate links. Investing in digital assets carries a risk of total or partial loss of capital. Past performance is not indicative of future results. Invest only what you are willing to lose.

The United States national debt surpassed for the first time in its history the 40 trillion (million of millions) dollars, according to data released this Wednesday (08/19/2026) by the Department of the Treasury. According to its daily publication known as “Debt Calculated to the Penny,” the total liabilities of the U.S. Federal Government are 40.047 trillion dollars. The milestone was reached barely five months after the amount exceeded 39 trillion, a sign that the debt’s growth rate has accelerated recently. This is mainly due to the government’s loss of the tariffs it had been charging on imports from around the world after the Supreme Court ruled in February that they were illegal. In addition to this, there is both the increase in debt tied to health and Social Security as well as the interest paid by the country. The figure contrasts with an earlier Congressional Budget Office forecast, which predicted the total debt would reach 39.4 trillion dollars by the end of fiscal year 2026 in September. Right now, the government’s spending level exceeds its fiscal revenues by about two trillion dollars annually. To cover that gap, it borrows money. Debt will continue to grow. Currently, the Federal Government is spending more than a trillion dollars a year on interest—also rising—to finance this debt, and this is already the second-largest major expense after Social Security. Add to this the large tax cut law that President Donald Trump pushed through last year, which promises to increase that annual deficit above 4 trillion over the next decade. In this context, the yield on the 30-year U.S. Treasury bond rose again this week to its highest level in 19 years amid fears that inflation would rise due to the war in Iran. On the same day, the United States announced that it would double the volume of its bond repurchase operations, to at least 4 billion dollars, in order to “support the liquidity” of the long-term securities it issues. DZC (EFE, AFP)

U.S. debt tops $40 trillion for the first time Federal liabilities have risen by one trillion in barely five months, and the cost of interest is solidifying as one of the largest budget items Public debt in the United States has surpassed $40 trillion for the first time, according to data published Wednesday by the Department of the Treasury. Federal liabilities stood at $40.047 trillion, barely five months after breaching the $39 trillion mark. The growth pace has accelerated in recent months. The debt had already reached $38 trillion at the end of 2025 and has added another $2 trillion since then, in a context of high budget deficits. The increase in indebtedness comes as the federal government maintains a sharp imbalance between revenues and spending. Added to this is the rising cost of financing the debt: interest payments have become one of the largest components of the U.S. budget, behind Social Security and above other major federal programs. Donald Trump’s tariff policy has also faced a setback. The Supreme Court ruled in February that the emergency economic powers law used by the president did not authorize unilateral imposition of tariffs, although other trade measures adopted under different legal bases remain in force. The 30-year bond at a peak The rise in debt coincides with greater pressure in the bond market. The yield on the 30-year U.S. Treasury bond this week reached its highest level since 2007, reflecting investors’ concerns about inflation, the high volume of issuances, and the future cost of financing. In response to these tensions, the Treasury Department announced on Wednesday that it would double the size of some of its long-term debt repurchase operations, to at least $4 billion per operation. The move aims to improve liquidity of bonds maturing between 10 and 30 years and will take effect on September 9. The measure comes as the United States faces unprecedented debt and ever-higher financing costs. The new record of $40 trillion also means that federal indebtedness has roughly doubled since 2017.

TEXT_1 describes a news article from elEconomista.es about the United States public debt exceeding the $40 trillion threshold for the first time, amid a global rise in sovereign yields. It covers the Treasury’s confirmation that debt reached $40.05 trillion at the close of the previous day, cites statements from Treasury Secretary Scott Bessent about long-term financing costs and a program of longer-term bond repurchases, and notes how the debt crossing the $40 trillion mark is a psychological threshold with real-world implications for debt servicing costs and mortgage rates. The piece highlights that the debt level equates to about 20 economies the size of Spain, discusses opinions from analysts and economists on the sustainability of the debt trajectory, and mentions political polarization in the US interfering with fiscal policy, with various quotes from analysts and institutions (including Deutsche Bank and SEB) about the implications for interest rates, deficits, and potential future policy actions. It also references projections and past policy impacts (tax cuts under Bush and Trump, stimulus under Obama and Biden) on deficits and debt, and notes near-term fiscal spending and interest costs in 2026. The article includes standard multimedia and site navigation terms in Spanish (e.g., Markets, Indices, exchange rates) and concludes with user engagement options (comments, login) and a reference to related links.

Why the US debt first surpasses the historic 40 trillion mark (and what it means) The fear is now reality: the sovereign liability has crossed an unprecedented psychological and financial barrier after doubling under Trump and Biden. Both Republicans and Democrats must cover all bases. The data is brutal: according to the daily update from the United States Department of the Treasury, in its official register known as "Debt Held Total Calculated to the Centavo", the total federal government debt stood exactly at 40.047 trillion dollars. The figure not only marks an astronomical milestone in the finances of the planet’s largest economy, surpassing that psychological barrier, but also shows a dizzying acceleration: the first economy in the world took only five months to add another trillion dollars, after reaching 39 trillion in March and 38 trillion in October of the previous year. Behind this increase are structural and cyclical factors: the higher cost of military spending — marked by the war with Iran —, the rise in costs in social programs like Medicare and Social Security, a historic bill in interest payments, and a judicial setback that reduced White House tariff revenues. Why has it grown so fast? U.S. debt has doubled in less than a decade, repeatedly driven by both Republican and Democratic administrations. The multi-billion stimulus packages approved to cushion the covid-19 pandemic during Trump’s first term (2017-2021) and Biden’s presidency laid the groundwork for a recurring deficit. However, in the last year the imbalance between what the state collects and what it spends has widened to about two trillion dollars annually. Several factors explain this latest jump. The main one is the rise in defense spending and geopolitical crises. Financing military operations, particularly the nearly six-month war deployment in the Middle East ordered by the Trump administration in collusion with Israel, has strained budget lines. But there has also been a noticeable loss of tariff revenues: the U.S. Supreme Court ruled in February that the generalized tariffs on imports imposed by the White House were illegal, abruptly cutting one of the main revenue sources anticipated by the Administration. Trump was counting on it, but no. Moreover, the tax cuts package passed by Congress last year threatens to widen the fiscal gap to surpass four trillion dollars in annual deficit over the next decade. The gradual aging of the U.S. population also doesn’t help, since it automatically increases mandatory outlays on pensions and healthcare for retirees. The debt-interest trap: more than a trillion per year One of the aspects that most alarm economists is not just the total debt, but the cost of carrying it. With interest rates at elevated levels to contain inflation, debt service has surged. Currently, the U.S. government spends more than a trillion dollars annually solely on interest payments, becoming the second-largest federal expenditure, behind Social Security and even surpassing the entire budget of the Department of War, which the Defense has been renamed. This dynamic has caused turbulence in the fixed-income markets: for example, the 30-year Treasury yield reached its highest level in 19 years this week, reflecting investors’ caution about inflation risk, CNN cites. To calm volatility and sustain demand, the Treasury announced an immediate intervention: doubling its repurchase operations for sovereign bonds to a minimum of $4.0 billion, thus guaranteeing liquidity in long-term securities. And how does this affect citizens’ wallets? Although 40 trillion dollars may seem abstract and distant, besides enormous, analysts warn that its effects translate directly into daily economics. "The federal debt is already raising the cost of living and stifling other public and private investments, threatening Americans’ long-term prosperity," warned Margaret Spellings, president and CEO of the Bipartisan Policy Center, in statements to AP. "Our current fiscal trajectory is simply unsustainable. Any additional disruption —such as a recession or a global war escalation— could turn this challenge into an open crisis," she added. Among the tangible consequences for households are higher mortgage and loan costs. When the government absorbs large amounts of capital in the markets by issuing debt, it competes with the private sector, pushing interest rates up to buy a home, finance a vehicle, or use credit cards. There is also less wage and investment margin, as companies face higher financing costs, which restrict hiring, raise salaries, and expansion projects. There is also inflationary pressure: excess sustained public spending with debt tends to keep inflation high for longer periods. And precisely the rise in the shopping basket, the essentials, was already one of the elements that tipped the balance in favor of the Republicans rather than the Democrats in the last presidential elections. The pressure has not improved in the Trump era. The political response and the next clash in Congress From the government, White House spokesperson Kush Desai has defended the official economic strategy, assuring that the administration "has focused on cutting waste, fraud, and abuse in public spending, while accelerating economic growth to steer the debt-to-GDP ratio in the right direction." However, independent organizations insist on the urgency of bipartisan structural measures. Michael A. Peterson, executive director of the Peter G. Peterson Foundation, told the same U.S. agency: "If we want to improve the living standards today and for future generations, lawmakers must place our nation on a more sustainable fiscal path." The political calendar is pressing. The U.S. operates under a statutory debt ceiling set by Congress. According to projections from the Bipartisan Policy Center, the country will reach the current legal limit — set at 41.1 trillion — between the end of this coming winter and mid-summer 2027. Autumn is critical, because in November midterm elections are held, in which Democrats may win seats from Trump’s side. When that moment arrives, conservatives and liberals will be forced to wage a new legislative battle to suspend or raise the debt ceiling if they want to avoid the world’s largest economy slipping into an unprecedented default.

Six months after the start of the bombings, Washington faces renewed tensions, uncertainty, and volatility in the financial markets. Donald Trump traveled on August 15 to his ostentatious Bedminster golf club in New Jersey to pose in front of two tables piled with meat, milk, cereals, and other basic foods. He wanted to send a message warning about inflation problems. The image, taken exactly two years ago, during the heart of the 2024 election campaign, exposes all the contradictions of today’s American president, exacerbated by the conflict in the Middle East. Trump returned to the White House thanks to voter discontent with the cumulative price increases in the era of Democrat Joe Biden. But six months ago the Republican leader embarked on a war against Iran with a resolution far more complex than initially anticipated. The occupant of the Oval Office calculated that the conflict in the Middle East would last four or five weeks, but he is about to reach six months with no sign of an immediate solution. The war has destabilized the economic landscape: it has fueled inflation, driven up the debt, and cooled growth in the United States. Trump’s presidency darkens as the months pass, with no solution to the impasse in the Persian Gulf. The economic balance of the war is worrying. Public debt surpassed the psychological barrier of 40 trillion dollars (34.3 trillion euros) on Thursday, a new historical high, prompting analysts to sound alarms. “It’s striking that we’ve doubled federal debt in less than 10 years, and that we must change course,” said Michael A. Peterson, CEO of the Peterson Foundation, which analyzes U.S. fiscal challenges. “We are adding debt faster than ever.” After this rapid increase there are several explanations, but among them the rise in spending due to the war against Iran stands out. Defense Secretary Pete Hegseth revealed to Congress that the cost of the conflict amounted to 37.5 billion dollars. “Other estimates, which contemplate a broader range of costs and greater munitions consumption, suggest that the cost of Operation Epic Fury could have surpassed 100 billion dollars,” according to the Center for Strategic and International Studies (CSIS). The calculations include the deployment of military personnel, munitions, fuel, and security, among others. The prolongation of the war has led the Trump Administration to seek more funding from Congress. Hegseth requested from Congress an expansion of his department’s budget by 114 billion dollars for the coming year to replenish critical ammunition reserves. The allocation would quintuple. The Congressional Budget Office estimates that the public deficit will exceed two trillion dollars by year’s end, pushing the public debt above 100% of GDP, its highest level since the end of World War II. Investor distrust in Treasury bonds grew, with yields demanding higher returns. The 30-year bond yield reached 5.3% this week, the highest since 2007, just before the Great Recession symbolized by the Lehman Brothers collapse. That rise affects the cost of financing for the state and influences the interest rates households pay on mortgages, car loans, or debts undertaken to fund their children’s education. The volatility in public debt markets prompted the White House to act this week. Treasury Secretary Scott Bessent announced on Wednesday that he would double the long-term bond repurchase program to inject liquidity into the markets. While some analysts insist that all that has been done is buy time until after the midterm elections in three months, since the debt problem requires deeper decisions. The war not only costs the United States financially. The European top leaders, starting with Commission President Ursula von der Leyen, have recalled almost from the start that this costs the EU around 500 million euros a day. The closing of Hormuz has triggered a notable escalation in energy prices that has once again pushed inflation higher, with euro-area inflation rising to 2.9% in July, as Eurostat just confirmed, reports Silvia Ayuso. Most member states have adopted more than 210 emergency measures involving nearly 16 billion euros in additional public spending, in addition to the 46 billion euro bill for higher fossil fuel import prices. Brussels has so far avoided commenting on Trump’s latest threat — another one — against Iran. “We will not speculate,” a EU spokesperson said, while reiterating the bloc’s position: the EU calls for “moderation” from “all parties” and for the diplomatic channels to be reopened to seek a solution. “Only diplomacy can bring a sustainable solution to all outstanding issues,” the spokesperson emphasized, highlighting the mediation efforts of regional partners. Trump’s announced intention to try to strangle Tehran, even though not yet concrete, is not inconsequential. The International Monetary Fund recently stated that the escalation of the war in the Middle East will harm global growth and worsen the inflationary crisis. The U.S. economy cooled to 0.4% in the second quarter, one-tenth lower than in the previous three months. And analysts are lowering expectations for the end of the year, despite activity being affected by the artificial intelligence boom and the construction of data centers, which are boosting the economy. The U.S. oil sector is among the biggest beneficiaries of the conflict in the Middle East, producing and exporting more than ever, but the domestic economy is strained. The blockade of the Strait of Hormuz has pushed up fuel prices and fueled inflation. The price of a gallon of gasoline in the United States has long been above four dollars, a level considered harmful to the economy because it weighs on the wallets of families in a large country where long daily distances are common. Americans have paid more than 80 billion dollars in additional gasoline and diesel costs since the bombardment of Tehran began, according to calculations from the Center for American Progress (CAP). In other words, more than $500 per household. Energy prices have again fed inflation. When it seemed the Federal Reserve could land inflation near the 2% target, the blockage of the strategic passage through the Persian Gulf has pressured prices. The latest data from the Bureau of Labor Statistics put July’s inflation at 3.4%, above what Trump reported two years ago at his Bedminster golf club.

The United States’ debt crossed the $40 trillion threshold after adding one trillion in just five months, equivalent to what an average worker would earn in 615 million years. The United States’ gross national debt officially reached $40 trillion for the first time in history this week, according to the U.S. Treasury. This occurs while the Government continues spending more than it takes in, among other things in defense, Social Security, and interest on the debt. Just the latter alone now costs the Government more than $1 trillion per year. This milestone came as yields on long-term U.S. Treasury bonds reached multi-year highs at the start of the week, reflecting investors’ concerns about inflation, global tensions, and the country’s rising debt. The more interest a country pays, the faster its debt grows. The national debt has risen as the United States borrows to cover recurring budget deficits. The higher interest costs drive up spending, force continued borrowing, and feed a vicious circle of rising debt. Interest is paid with federal revenues, primarily taxes. When those revenues are insufficient, the Government resorts to more borrowing, passing part of the cost onto future budgets and taxpayers. "Based on median wages, an American worker would take more than 615 million years to earn the equivalent of the United States’ $40 trillion national debt, which by itself has doubled in a decade," notes Dan Coatsworth, head of markets at AJ Bell. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, stated in a release: "The $40 trillion of debt doesn’t exist only on the Government’s balance sheets; it is felt throughout the economy and eventually ends up, one way or another, in people’s pockets." She warned that, "the more we borrow, the more we fuel inflation, push other budget priorities aside, and leave ourselves vulnerable to domestic emergencies and overseas turbulence."

The US debt surpasses the $40 trillion milestone Public debt of the United States has for the first time in its history exceeded $40 trillion. This is shown by data published yesterday by the Treasury Department in its daily publication Debt Calculated to the Cent. The total liability of the U.S. Federal Government has reached $40.047 trillion. The milestone was reached just five months after the amount had surpassed $39 trillion, illustrating that the pace of federal debt growth has accelerated recently. This increase is primarily due to the Trump administration ceasing to collect tariffs on imports from around the world after the Supreme Court ruled in February that they were illegal. Right now, the level of spending by his Administration exceeds its fiscal revenues by about two trillion dollars annually. Add to this the major tax cuts law that Trump pushed last year, which will very likely raise the annual deficit above $4 trillion over the next decade. Moreover, federal spending has risen since the Republican returned to the White House in January 2025, while the debt-to-GDP ratio has also worsened. Currently, the federal government is spending more than $1 trillion per year to pay interest—also rising—to finance its debt, and this already constitutes the second-largest spending item after Social Security. In this context, the yield on the 30-year U.S. Treasury bond again reached its 19-year high this week amid fears of higher inflation due to the war in Iran. Just yesterday, the U.S. government announced it would double the volume of its bond repurchase operations, to at least $4 billion, in order to “support liquidity” for the long-term securities it issues. Contrasting priorities The debt increase highlights the Trump administration’s conflicting priorities, from higher defense spending to wage a war in Iran, to lowering gasoline and food prices. The White House has said it has focused on cutting waste, fraud, and abuse of federal spending, while accelerating economic growth so that the U.S. debt-to-GDP ratio can be steered back in the right direction, White House spokesperson Kush Desai explained. However, experts warn that the explosive rise in debt has already affected Americans’ wallets, raising borrowing costs, reducing wages for companies with less money to invest, and contributing to higher prices for goods and services. Advocates of a balanced budget also warn that the long-term trend of borrowing more and paying more interest will force Americans to face tougher fiscal choices in the future. “Federal debt is already pushing up the cost of living and crowding out other spending and investments, threatening our economy and Americans’ long-term prosperity,” said Margaret Spellings, president and CEO of the Bipartisan Policy Center, in remarks to the Associated Press. “Our current fiscal trajectory is clearly unsustainable, and that is the best-case scenario. Disruptions from AI, a recession, a global war, or any other event could push us rapidly to the edge,” Spellings stated in a release. The United States is subject to a legally mandated debt limit that Congress has the power to set, adjust, or suspend. The Bipartisan Policy Center estimates the country is likely to hit the debt ceiling of $41.1 trillion sometime next year, which will require Congress to vote again to decide whether to raise or suspend the debt limit. Related news Most-read news - {{#content}} - {{title}} {{#image}}

The U.S. national debt crossed $40 trillion for the first time this week, but Treasury Secretary Scott Bessent wants Americans—and markets—to shrug it off. “There’s nothing magic about the $40 trillion number,” Bessent told CNBC‘s Sara Eisen in an exclusive interview on Squawk on the Street Thursday. “And we can grow our way out of that.” The remark, delivered with the same even cadence he’s used to talk down bond-market jitters all year, was Bessent’s clearest attempt yet to reframe a debt milestone that has alarmed economists and fueled a selloff in long-dated Treasurys. The gross national debt crossed the $40 trillion mark, according to Treasury Department data, just five months after hitting $39 trillion in March. Bessent’s comments came a day after the Treasury said it would at least double the size of its buyback operations for longer-dated securities—from a maximum of $2 billion per operation to “at least” $4 billion—in a bid to shore up liquidity in a bond market he described as thinly traded and, in his view, mispriced. The change takes effect Sept. 9 and applies through Nov. 4, covering the 10-to-20-year and 20-to-30-year sectors that have faced what CNBC has called a “buyers’ strike” since late June. “We believe that there are many underlying factors in turn that the market is not looking at, and we are going to make a market… in these,” Bessent said. “I would note that it could be more than the $4 billion per issue.” The fundamentals argument Bessent’s core pitch is the deficit is smaller than it looks, and the money the government is “losing” isn’t being lost at all. He said the U.S. ran a fiscal consolidation in calendar year 2025, with the deficit landing around 5.7% of GDP. Part of what has inflated the headline deficit, he argued, are one-time tariff refunds that won’t recur: 2026 tariff income, he said, should roughly match 2025 levels as U.S. Trade Representative Jamieson Greer reimplements duties through the Section 301 process. The other major drag on revenue, he said, is the cost of letting companies immediately expense new factories, equipment, and farm structures. Bessent said he doesn’t count that as spending. “That is actually an investment in the future and we’re increasing the tax base,” he said. “That is what measures the wealth of a nation … the ability to increase after-tax return on capital.” He described the strategy in physical terms: “Think of it as pulling back the slingshot here. We have a lot of potential energy that will turn into kinetic energy during this year, next year, as these factories come online.” Asked directly whether the administration believes it has already seen the worst of the deficit, Bessent didn’t hedge. “I think the very, very good chance we have,” he said, pointing to a coming joint effort with OMB Director Russell Vought and a separate crackdown led by the vice president’s Fraud Task Force that he said could “save several hundred billion dollars.” He also teased a broader fiscal-consolidation announcement from the White House “probably at the end of this week, beginning of next week,” covering both spending cuts and revenue measures. The deficit question Fortune reported earlier this month Bessent has leaned unusually hard on short-term Treasury bills to finance the roughly $2 trillion annual deficit, taking advantage of a 3.8% three-month bill yield versus a 30-year rate that has traded above 5%—a multi-decade high. That approach holds down reported borrowing costs today, but leaves the government more exposed if inflation or rates rise, according to minutes from the Treasury Borrowing Advisory Committee (TBAC), the panel of bond dealers and investors that advise Treasury on its own funding. Those same TBAC minutes, released Aug. 5, warned that at current auction sizes, the government faces a $1.45 trillion funding shortfall in fiscal years 2027-28. Rising interest costs already drove the biggest jump in Treasury outlays this year—up $120 billion—and the government now spends more than $1 trillion annually just servicing debt, more than the U.S. spends on national defense. Jon Hilsenrath, the longtime Federal Reserve watcher who spent decades at The Wall Street Journal and now runs Serpa Pinto Advisory, previously told Fortune he sees a collision brewing between the Treasury’s bill-heavy strategy and the Fed’s own moves under new Chair Kevin Warsh to shrink its balance sheet—which dealers expect to push the Fed toward shorter maturities just as Treasury is forced back toward longer-term bonds to refinance. “It always comes back to fundamentals,” Hilsenrath said. “Trump and a new Congress came into power and chose not to do anything about the deficit.” Notably, the strategy predates Bessent. It was his predecessor, Janet Yellen, who first leaned on short-term bills to fund deficits—a tactic Bessent himself criticized in 2024, when he amplified an analysis by economists Stephen Miran and Nouriel Roubini accusing Yellen’s Treasury of “activist Treasury issuance” designed to flatter the economy ahead of the election. Skepticism from the bond market Eisen pressed Bessent on whether the buyback signal was more theater than substance, noting Wednesday’s Treasury rally—yields fell as much as 9 basis points on the 30-year bond after the buyback news—had already partly reversed by Thursday morning. Bessent didn’t back down from the possibility of going further. “We have a big toolkit, so we will see,” he said, though he insisted the moves aren’t a response to any particular yield level. “It’s not if the market cooperates. It’s: we will see what the conditions are, and we will analyze them then.” He also dismissed the idea the buyback push constrains Warsh, who has signaled openness to shrinking the Fed’s balance sheet or raising rates if inflation stays elevated. “I think that the Treasury and the Fed would work together if there was any change in the balance sheet,” Bessent said, adding the buyback decision “has nothing to do” with the rate outlook. Inflation, jobs, and the dollar Bessent argued headline inflation—pushed higher recently by Brent crude near $94 a barrel amid the ongoing conflict with Iran—is masking a friendlier underlying picture. He pointed to slower wage growth in hospitality, gains for the bottom 25% of earners, and what he called the “biggest decrease in pharma prices” on record. “The core inflation is down,” he said. “We aren’t seeing anything that says that the second-order effects are spilling over into core inflation.” On the labor market, where a soft jobs report last month stoked concern about cracks in the economy, Bessent called the data “quite noisy” and credited tighter immigration enforcement for reducing the number of jobs the economy needs to create. He pointed to manufacturing and construction employment at 15-year highs. He also waved off recent dollar weakness. “The U.S. is a big service economy. We don’t respond to the trade-weighted dollar,” he said, describing the greenback as “very, very stable” against top trading partners Canada and Mexico and insisting the administration maintains “a strong dollar policy.” For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.

The Treasury announced on Monday, August 17, that total federal debt had reached roughly $39.9 trillion, leaving the United States’ top economy with only a small step away from this historic figure. This acceleration is partly explained by the loss of public revenue following the U.S. Supreme Court’s decision to invalidate President Donald Trump’s policy. The “Liberation Day” tariffs, which partly contributed to the acceleration. The Congressional Budget Office (CBO) had forecast six months ago that total borrowing would reach $39.4 trillion in the current fiscal year. The shortfall in customs revenue forced the Treasury to borrow more quickly to meet its public spending obligations. This deterioration in public finances comes as the U.S. bond market is already under pressure. Yields on long-term Treasury notes have risen sharply this year amid concerns about persistent inflation, large budget deficits, high public debt, and geopolitical uncertainty. On Tuesday, August 18, the 30-year Treasury yield briefly hit its highest level since 2007, while recent auction results also showed investors demanding significantly higher yields. In a recent auction, the 10-year Treasury note sold at a high yield of 4.683%, the highest in 19 years, while a 30-year bond auction closed at 5.216%, a 25-year high. The rise in yields means the government must pay more to refinance maturing debt and to fund new deficits, creating a vicious circle in which higher interest costs can themselves feed greater borrowing needs. The Congressional Budget Office (CBO) projects that the federal budget deficit will reach $1.9 trillion in fiscal year 2026, or 5.8% of GDP. It projects that the deficit will widen to $3.1 trillion, or 6.7% of GDP, by 2036. The rise in net interest costs explains much of this deterioration, with interest payments expected to rise from about $1 trillion this year to $2.1 trillion by 2036. The magnitude of the interest burden is already starting to show in public finances. The consequences extend beyond the public accounts. Treasury securities serve as benchmarks for borrowing throughout the U.S. economy; therefore, a sustained rise in government bond yields can ripple into mortgage rates, corporate borrowing costs, and other forms of credit. Yet the recent rise in yields does not indicate that investors are abandoning U.S. debt. Treasury security auctions continue to attract strong demand, particularly from foreign central banks, institutional investors, and asset managers. The most immediate concern is the magnitude and persistence of the debt. CBO projections indicate that the stock of public debt will rise from 101% of GDP in 2026 to 120% in 2036, surpassing the postwar record. Gross federal debt is expected to reach $64 trillion in 2036 under the agency’s baseline assumptions. The approach to $40 trillion also brings the next standoff over the debt ceiling closer. Congress set the legal borrowing limit at $41.1 trillion in 2025, but analysts now expect the Treasury to hit this threshold early next year. This could force lawmakers to raise or suspend the debt ceiling again to avoid any disruption to public payments. For markets, the central question is no longer simply whether Washington can keep borrowing, but how much investors will require to finance those borrowings. In the face of persistent deficits and rising interest costs, crossing the $40 trillion threshold will likely keep budgetary viability and Treasury yields at the forefront of concerns.

"Congress's Cowardice and Budgetary Disorder": where do the $40,000 billion of the American debt come from? - The public debt of the United States has surpassed the historic threshold of $40,047 billion. - This rise is explained by tax cuts of $8,700 billion and emergency spending. - According to Romina Boccia, this level of indebtedness threatens to slow American economic growth. This is an unhappy record. On Wednesday, the U.S. Treasury Department announced that the United States debt officially reached $40,047 billion the day before, up from $39,987 billion at the start of the week and $5,700 billion at the beginning of the 21st century. Several factors explain the current ratio of federal debt, the highest in American history. A historical baggage To see things clearly, one must look in the History’s rear-view mirror. The United States of America is not unfamiliar with public debt: they were born with it, through loans contracted to fund the War of Independence. But the early presidents, like Thomas Jefferson, were determined to push it down, and they succeeded… for a time. This determination did not hold in the long term. From the 1930s, the creation of social benefit programs, such as Social Security, created automatic new annual expenditures, and Keynesianism, which holds that deficit-financed public spending can be beneficial to the economy under certain conditions, took root among policymakers. Nearly a century later, all graphs draw the same conclusion: while it fluctuated in the late 20th century thanks to fiscal discipline and economic growth, American debt has continued to rise since the 2000s. Other parameters help explain its current ratio, close to 125% of GDP. Also read: Tax cuts, emergency spending, and an aging population For Romina Boccia, director of Budgetary Policy and Social Programs at the Cato Institute, wars (Iraq, Afghanistan) and the bursting of the Internet bubble disrupted budgets. Tax cuts between 2001 and 2025 weakened federal receipts by about $8,700 billion, according to the Peter G. Peterson Foundation. The 2007-2009 crisis and the pandemic, which required massive stimulus plans, did not improve the situation. Emergency spending (and associated interest costs), to address wars, recessions, natural disasters, and the pandemic, reached $15,000 billion over the last 35 years, according to a study by Dominik Lett, budget analyst at the Cato Institute. These increases are not inherently problematic, but, unlike after World War II, emergency spending related to Covid, for example, was not followed by deficit-reduction measures. To these economic data, add a demographic factor: the U.S. population is aging, which drives higher spending on health insurance (Medicare and Medicaid) and Social Security in a context where revenues do not keep up. This dynamic weighs even more heavily since the debt is considered sustainable only as long as the economy grows faster than the cost of the debt. Growth slowdown in sight The result of these policy choices outlines a worrying debt trajectory. In March 2026, Romina Boccia denounced "Congress’s cowardice, coupled with budgetary indiscipline." "Washington politicians spent irresponsibly in peacetime as in wartime, during periods of expansion and contraction, during a pandemic." Also read: If excessive indebtedness does not ease, the economist warns, economic growth will slow, reducing income levels and interest rates will be even higher, creating a snowball effect: the higher debt leads to higher interest rates, which in turn fuels debt. An indefinitely deferred deadline The situation is complex because cutting public spending to cover the debt would mean reducing programs that help individuals, such as health care and Social Security. Measures that would be highly unpopular. It remains to be seen whether the "bond vigilantes"—investors who punish lax fiscal management by selling their securities and demanding higher yields—will react to this unsustainable policy, or whether the Treasury bonds’ privileged status will continue to absorb the shock. The United States still has a real advantage: liquidity and the status of a safe-haven asset have so far allowed borrowing with little market sanction. But this safety net does not solve the underlying problem; it only defers the due date while debt and structural budget pressures continue to accumulate. - Ever more In 2027, Taiwan’s defense spending will represent nearly 29% of total spending as the security environment remains highly uncertain. Chinese President Xi Jinping is due to visit Washington in September - Ambitions Almost ten years after his Congressional election, the New York representative, close to Bernie Sanders, managed to win acceptance from the Democratic establishment while retaining the support of the progressive wing. A coalition that could be necessary for 2028 - The 5,000 soldiers are on the way back after more than nine months at sea. In recent weeks, testimonies from loved ones had alerted the public to the situation aboard the U.S. aircraft carrier deployed in the Middle East - General Christopher LaNeve, acting Chief of Staff, seeks to imprint his mark at the head of the army, targeting the flagship project of his predecessor, dismissed by Pete Hegseth - Epicenter While the yen remains weak despite the joint intervention of Washington and Tokyo in late July, the rise in long-term bond yields could have consequences well beyond Japanese borders - The American president applies to foreign policy the same transactional logic that helped him build his real estate empire. But faced with an Iranian regime guided by ideology and a survival logic, his pragmatism leads him to a dead end - Launched at the heart of the SCPI crisis, over-the-counter trading platforms are expanding beyond locked-liquidity vehicles. But in the secondary market, prices do not reflect the reality of portfolios. - PMI flash indices show a slight acceleration in growth in August, driven mainly by a rebound in manufacturing, despite the Middle East and the heat wave in Europe. Employment is rebounding while price pressures ease. - If the state successfully issued €12.5 billion of OATs this Thursday, the cost continues its inexorable rise, reflecting growing investor doubts about France’s drift. Bercy is aware. On Thursday evening it released the Comptroller General of Finance’s report on the consequences of a special law that would last several months in 2027 due to lack of budget.

This is the financial topic everyone is talking about, with a tinge of worry, even in political circles. Interest rates are rising as quickly as forest fires spread during this heatwave. In the United States, the yield on ten-year Treasury bonds reached 4.71% on Tuesday, the highest level in nearly 20 years. To try to curb the rise, the U.S. Treasury announced on Wednesday a bond-buying program. That momentarily pushed the yield back down to 4.64%, but without truly stopping the upward trend. The worst-case scenarios Because the rise is indeed there, including in Europe. In France, ten-year OATs exceed 4%. For Belgium’s ten-year OLO, we are approaching the 4% threshold. Even the German bund is touched, with a rate climbing to 3.26%, something not seen in nearly 15 years. Since the sovereign debt crisis in the euro area raised fears of the worst-case scenarios of insolvency for some highly indebted states. The first cause of this rate rise lies in the specter of inflation, itself fed by the rebound in energy prices following the war in Iran. The new chair of the U.S. Federal Reserve, Kevin Warsh, “had indicated that he aimed for price stability, but he did not take the necessary measures. It is clear that the bond market is doing the work for the authorities. It is as if the decline in bond prices and the ensuing rise in yields are substituting for the absence of a monetary tightening policy,” notes Frank Vranken, chief strategist at Edmond de Rothschild Europe. He adds, “the big fear that the Japanese will sell Treasury bonds,” which would allow them to rack up substantial capital gains in a context of fighting the yen’s weakness. Another factor, Frank Vranken notes, are the record corporate bond issues in dollars—$1.5 trillion—by major names like Meta, Nvidia, or Microsoft. “Investors had plenty of choice. That contributed to the move in rates higher,” the economist continues. Fears of a vicious circle Markets fear ending up in a vicious circle where higher rates raise the interest burden on governments, making budget consolidation even harder. In the United States, the debt has exceeded the record $40 trillion, and the interest burden now ranks third among government expenditures, ahead of defense. One can understand why the Treasury wants to intervene in the bond market… This bond market slump is worrying. It reflects a problem of growth and excessive indebtedness. Those who lend money believe we are approaching the edge of a cliff. Some euro-area countries are also very troubled by this rise in the price of money. Investor distrust of France, where even the slightest reform plan leads people into the streets, is growing stronger. Higher rates in southern countries such as Spain bear witness to this. “This bond market crash is worrying. It reflects a problem of weak growth and excessive indebtedness. Those who lend money believe we are approaching the precipice; the most indebted countries will therefore need to find a solution. The European Central Bank has gone too far with its zero-rate policy, which has only postponed the problem. It has mainly bought time. Before the single currency, countries in trouble could devalue their currency. With the euro, everyone is in the same boat. During the sovereign debt crisis, it might have been necessary to let some countries exit the euro area. That could have triggered the needed shock and pushed states like France or Belgium to restore order in their public finances,” says Arnaud Delaunay, chief economist at the brokerage Leleux. Tens of percent rates in the 1980s Frank Vranken believes that it is premature to talk of a bond market crash. “It’s true we are in a somewhat higher rate range, but a 4.65% rate for Treasury bonds is not alarming compared with what we’ve seen in the past,” he notes. And it’s true that rates rose much higher in Western countries. In Belgium, they even surpassed 15% in the early 1980s, as recalled by a recent BNP Paribas Fortis study. What is quite surprising is that this rise in rates has not (yet?) had negative effects on stock markets. On the contrary, the S&P and the EuroStoxx 50 have gained nearly 13% since the start of the year. Forecast comments remain fairly reassuring. “Solid earnings prospects, combined with investments, should continue to support stock markets,” conclude Lombard Odier economists in their latest analysis note.

The United States’ debt has surpassed, for the first time in history, the 40 trillion-dollar threshold, which corresponds to 34.4 trillion euros, according to data from the Treasury Department. Thus, the national liability of the world’s leading economy has doubled in the last decade. Within this figure we must include the debt held by the public of 32.26 trillion dollars (27.7 trillion euros) and another 7.78 trillion dollars (6.7 trillion euros) in intragovernmental positions. In annual terms, the country’s debt has already risen by 1.5 trillion in 2026 so far, about 1.3 trillion euros. With this, the indicator surpassed 39 million euros for the first time last March. Thus, during Donald Trump’s second term as president, U.S. debt has grown by almost 4 trillion dollars (3.4 trillion euros). “It is astonishing how predictable the fiscal decline of a world power can be,” lamented Maya MacGuineas, president of the Committee for a Responsible Federal Budget, after U.S. national debt doubled in the last ten years and quadrupled “in less than twenty.” She also stated that the U.S. public debt has recently exceeded the size of the world’s largest economy, driving interest costs above the national defense budget. “The more we go into debt, the more we exacerbate inflation, the more we deprive other budget priorities, and the more vulnerable we become to internal emergencies and international turbulence,” she warned.

To the grand economy that Donald Trump promised, the numbers don’t add up. The public debt in the United States has surpassed 40 trillion dollars, reaching another astonishing borrowing record, according to the Treasury Department. This is a threatening milestone for an economy resting on precarious fiscal foundations after decades of borrowing to finance the growing costs of the military, social protection programs, and tax cuts instituted by Trump. He had promised to restore fiscal order and reduce the U.S. debt burden, but this has been hindered by spending on the Iran War, lower tax receipts, and tariff refunds. The total debt of the United States first topped $40.05 trillion on Wednesday, just about four and a half years after surpassing the $30 trillion mark. Years of ever-growing budget deficits, further boosted by pandemic stimulus funds, have brought debt held by the public close to 100% of GDP. Kicking past this threshold marks a decade of rising public spending under the administrations of both Trump and Joe Biden. During his first term, Trump approved $8.4 trillion in debt, while Biden approved $4.3 trillion, noted the Committee for a Responsible Federal Budget. “To put it in perspective, it took the United States almost 200 years to reach a gross debt of one trillion dollars for the first time in 1981,” Maya MacGuineas, president of that committee, explained in a statement. “A $40 trillion debt doesn’t exist merely on government ledgers. It’s felt throughout the economy and, in one way or another, affects citizens’ wallets. The more we borrow, the more we stoke inflation, push aside other budget priorities, and expose ourselves to vulnerabilities in the face of internal emergencies and turbulence abroad,” she added. In the most recent monthly U.S. fiscal report, the Treasury recorded a deficit of $432.3 billion in July, the largest monthly deficit since March 2021. The year-to-date deficit is approaching $1.8 trillion, a figure higher than that recorded during the same period of the previous year. Ten years ago, the debt level stood at $19.4 trillion. The United States’ fiscal situation has had repercussions in the markets, which have recently manifested and likely prompted the Treasury Department to announce on Wednesday that it will increase the pace of its long‑term debt repurchases. Treasury yields have risen considerably since late June, reaching levels not seen since before the 2008 global financial crisis, which ultimately pushed the Federal Reserve to cut benchmark rates to near zero. The Fed also launched an aggressive bond-buying program at the end of that year, which helped contain interest rates. However, concerns about the debt and deficit situation, along with rising corporate bonds tied to AI investments, the longer-maturity premium, and doubts about the Fed’s commitment to fighting inflation, have contributed to higher yields. With the Fed reluctant to adjust interest rates in light of limited information on inflation and the labor market, the government’s borrowing costs have soared. Interest on the debt has reached nearly $1.2 trillion this year and remains the largest budget outlay after Social Security and Medicare (health insurance mainly for people over 65).

For the first time, the U.S. national debt surpassed 40 trillion dollars, according to information published this Wednesday, August 19, by the Treasury Department, amid rising yields on government bonds. As shown in its daily publication — the so-called Debt calculated to the cent — the total liabilities of the federal government are 40.047 trillion dollars. The milestone was reached just five months after the amount exceeded 39 trillion, a sign that the growth pace of this debt has accelerated recently. Why has U.S. debt grown? This is mainly because the government of President Donald Trump stopped collecting tariffs on imports from around the world after the Supreme Court ruled in February that they were illegal. Another reason is related to the increase in debt linked to health and Social Security as well as the interest paid by the country. Right now, the administration’s spending level is about two trillion dollars above its tax revenue annually. Add to this the large tax cut law that Trump pushed last year, which promises to push that annual deficit above 4 trillion over the next decade. Furthermore, federal spending has increased since the Republican returned to the White House in January 2025, while the debt-to-GDP ratio has also worsened. Debt exceeds projections for the end of the fiscal year. The figure contrasts with an earlier forecast by the Congressional Budget Office, which projected total indebtedness would reach 39.4 trillion dollars by the end of fiscal year 2026, ending in September. The cost of borrowing has surged for the United States. Long-term Treasury yields rose on Tuesday to their highest level since 2007, reflecting growing price pressure due to the Middle East war and concerns about the fiscal deficit. The increase forces the U.S. government to refinance debt at the highest rates since before the 2008 global financial crisis. The Treasury Department intervened early Wednesday to stabilize the long-term bond market and pushed yields down. It announced it would double the volume of its bond repurchase operations, to at least 4 trillion dollars, in order to “support the liquidity” of long-term securities it issues. The federal government runs a deficit and borrows money to cover the gap. But “it has been known for some time that the U.S. government is on a fairly unsustainable deficit trajectory,” said Jessica Riedl, a budget and tax expert at the Brookings Institution. “In recent years, the United States has moved to running deficits of roughly 2 trillion dollars, even in times of peace and prosperity,” she added. MD

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The United States is approaching a frontier that until a few years ago seemed hard to imagine: a public debt close to $40 trillion. The figure is not only a bookkeeping record. Behind it lies a much more uncomfortable problem for Washington: every new borrowed dollar costs more money and forces the Treasury to find buyers willing to continue financing the Government. With a budget deficit near $1.8 trillion and interest payments already above $1 trillion a year, the world’s largest economy enters a different phase. The debate no longer revolves solely around the size of the debt, but around who will keep buying it, at what price, and for how long. U.S. indebtedness has been rising for years as a result of structural deficits, public programs, military spending, social benefits, and successive fiscal responses to economic crises. The problem appears when that dynamic coincides with interest rates much higher than those recorded for much of the previous decade. For years, Washington could increase its debt while paying relatively low financing costs. That scenario has changed. If the Treasury has to roll over old maturities at higher rates, the bill rises even if the deficit stopped growing. The risk is a hard-to-break dynamic: more debt requires more issuances, more issuances may require higher yields, and those yields push interest costs even higher. Fiscal sustainability thus begins to depend not only on economic growth but on the confidence of buyers. U.S. Treasury bonds have traditionally been among the safest assets in the international financial system. Central banks, investment funds, insurers, and governments use them as liquidity reserves and as a benchmark to value a large portion of the global market. But when the yields on 10-year and 30-year Treasuries rise, their prices fall. And behind that rise is an uncomfortable message: investors demand greater compensation to lend money long-term. This does not mean the United States is close to running out of financing. The Treasuries market remains one of the deepest in the world. However, Washington needs to place ever-larger amounts of debt, increasing its reliance on domestic and international demand. The real question is no longer whether there will be buyers. It is how much they will demand to continue buying. The financial cost has become one of the federal budget’s most sensitive line items. Exceeding $1 trillion a year in interest means dedicating resources simply to paying obligations accumulated in prior years. That money does not fund new roads, innovation, defense, or social policies. It is the price of keeping the debt stock alive. Moreover, the deterioration could accelerate. A seemingly small difference in the average rate paid on a debt nearing $40 trillion has gigantic consequences. A rise of just one percentage point implies, in theoretical terms, hundreds of billions of additional financing costs when that is finally rolled into the overall debt. That is why the U.S. fiscal problem can no longer be analyzed solely by looking at how much Washington owes. It matters just as much or more how much it pays to owe it. For decades, large exporting economies like Japan and China played an essential role as buyers of U.S. debt. Their enormous foreign exchange reserves found in Treasuries a liquid, deep asset denominated in the world’s main reserve currency. But the structure is changing. U.S. financing increasingly depends on private investors, banks, pension funds, money market funds, and domestic buyers. A reduction in foreign purchases does not automatically trigger a crisis, but it does force the market to find substitutes. And to attract them, higher yields may be necessary. This fact reveals the American paradox: the more Washington needs to borrow, the more important it is to convince the market that its debt remains extraordinarily safe. The problem does not end with public accounts. U.S. bonds serve as benchmarks for numerous types of financing. When the long-term debt yield rises, that pressure also shifts to mortgages, corporate loans, and other forms of credit. A family wanting to buy a home may end up paying a higher monthly payment. A company seeking to finance an investment faces a higher cost of capital. And stock markets also feel the impact because bonds offer an increasingly attractive alternative to stocks. The domino effect also reaches abroad. The dollar and Treasuries occupy a central position in the global financial system, so moves in U.S. rates affect everything from emerging markets to the financing costs of large multinationals. The United States retains extraordinary advantages: it issues debt in its own currency, controls the world’s primary reserve currency, and has the largest and most liquid financial market in the world. That gives it a cushion that virtually no other country possesses. But that privilege does not defy math. If deficits stay near trillions of dollars annually and interest costs continue to rise, each year will compel the Treasury to issue huge amounts of new debt while refinancing the existing one. The most immediate threat is not necessarily a default, but something far more gradual: structurally high rates, greater fiscal pressure, less budgetary room, and rising financing costs for the entire economy. Washington still finds buyers. The question that unsettles the markets is how much it will have to pay to keep them opening their wallets.

A screen displaying the US national debt is seen in the Manhattan borough of New York City on April 11, 2025. The U.S. national debt crossed $40 trillion on Tuesday, according tonewly released datafrom the Treasury Department. It marks a key milestone for the U.S., which has seen its total outstanding debt double over less than a decade. This sum first crossed the $20 trillion mark in late 2017 andreached $39 trillionjust five months ago in March. Fiscal hawks immediately slammed the development. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, called on lawmakers to take action, arguing that “no one knows how many more of these milestones America can take.” “Whatever motivation our elected officials need to find to finally take action – whether the worries of their constituents back home, the alarm signaled by financial markets, competition from abroad, or the consequences of failing to act – they ought to find it soon,” shesaid in a statement. She argued “other warning signs are flashing too” — pointing to the rising ratio between the debt and the size of the economy. As of the first quarter of 2026, the national debt represented about 122 percent of U.S. gross domestic product, which sat at $31.87 trillion. Michael Peterson, CEO of the Peter G. Peterson Foundation, framed the rising debt in the context of affordability — an issue that has taken center stage in the upcoming midterm elections. “The more debt we take on, the more interest costs we have to bear, which now even exceed the cost of national defense,” Peterson said in astatement. “And every trillion we add to our debt contributes to higher interest rates and inflation, increasing the mortgages, car loans and credit card bills of all Americans,” he continued. “At the same time, debt harms economic growth, slowing wage increases while the cost of living continues to rise.” Libertarian Sen. Rand Paul (R-Ky.), a fiscal hawk, brought attention to the milestone in apost on social media, simply writing, “we just hit $40 trillion.” The federal government owes more than $32.2 trillion to outside entities — debt held by the public — including businesses, state and local governments and foreign governments and businesses. It owes nearly $7.8 trillion to itself, with theCRFB notingthe vast majority of it is debt held in government trust funds, such asSocial Security. The debt surpassing $40 trillion comes a day after the 30-year Treasury bond yield soared above 5.3 percent, marking itshighest point since April 2007, months before the start of the late-2000s financial crisis that upended the global economy. The 30-year bond yield has since ticked down to below 5.2 percent, after the Treasury DepartmentsaidWednesday itwill doublethe maximum amount of U.S. debt it can buy back starting next month. The change will be in effect from Sept. 9 through at least Nov. 4, with the Treasury noting it will provide an update at its next Quarterly Refunding on the latter date. Since the start of President Trump’s second term, the national debt has grown by $3.83 trillion. The country added $7.78 trillion to the deficit over his first four years in office. The One Big Beautiful Bill Act, the GOP’s signature tax and spending legislation Trumpsigned into lawin July 2025, is expected to add $3.4 trillion to the federal budget deficit through 2032, the nonpartisan Congressional Budget Officeestimated last year. Rep. Warren Davidson (R-Ohio) called the country’s fiscal trajectory “not sustainable.” “Runaway spending and debt weaken the dollar, drive up costs, and make everyones paycheck worth less,” Davidsonwrote Wednesday on X. “Congress needs to take this seriously by rooting out more waste, making real spending cuts, and getting us back to a balanced budget.” Updated 6:25 p.m. EDT.

The U.S. debt tops a record-shattering $40 trillion. Yes, with a T The federal debt topped $40 trillion Wednesday, a new high-water mark for red ink that shows no sign of receding. The news, reported by the Treasury Department in its daily financial update, comes just five months after the debt surpassed $39 trillion. The government continues to pile up debt at a rapid clip, as spending outstrips revenue by more than $2 trillion a year. "Our current fiscal trajectory is plainly unsustainable, and that's the best-case scenario," said Margaret Spellings, president of the Bipartisan Policy Center. "Even in the rosiest scenarios, we're speeding toward a cliff and refusing to turn the wheel." The deficit widened further after the Supreme Court struck down many of President Trump's tariffs, forcing the Treasury to refund more than $100 billion in import taxes that were collected illegally. Government spending continues to surge The administration sought to blame the ballooning deficit on Democrats. "President Trump pledged to clean up Joe Biden's fiscal mismanagement," White House spokesman Kush Desai said in a statement. "That's why the Trump administration has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America's debt-to-GDP ratio trending in the right direction again." Government revenues have grown 3% this fiscal year — but spending has grown even faster. And the debt-to-GDP ratio has worsened since Trump returned to the White House. The government is spending more than a trillion dollars a year just to pay interest on the mounting debt. Interest is now the government's second-biggest expense, trailing only Social Security. Interest costs in the first 10 months of this fiscal year were 15% higher than they were in the same period a year ago. That reflects not only the growing debt but also the higher interest rates that investors are now demanding in order to keep lending the government money. Bond markets are reacting The yield on 30-year Treasurys reached a 19-year high this week. That raises borrowing costs for everyone else, since mortgage rates and other interest rates often follow long-term Treasurys. The average rate on a 30-year mortgage neared 6.7% last week, according to Freddie Mac. "Federal debt is already raising the cost of living and choking out other spending and investment, threatening our economy and Americans' long-term prosperity," Spellings said. So far, Congress has shown little appetite for tackling the problem. "$40 trillion should be a wake-up call. But neither Congress nor the president have a credible plan to stop it from growing," said Carolyn Bourdeaux, executive director of Concord Action, a group that advocates for fiscal responsibility. "We owe the next generation better than this crushing debt and another hollow promise that someone else will deal with it later."

3 things to know about the $40 trillion federal debt Sign up for the Planet Money newsletter. The world is confusing. Economics can help. The Treasury Department reported this week that the U.S. federal debt had reached $40 trillion, an eye-popping level of red ink. Just the annual interest on that accumulated debt now tops a trillion dollars, making it the government's second-biggest expense, behind only Social Security. Here are three things to know about the deepening financial hole the government is in. How did the debt get so big? For years, the government has spent more money than it collects in taxes. Some of that has been driven by political choices — to wage war, cut taxes or provide a more generous social safety net during the COVID-19 pandemic. But much of the growth in spending happens automatically, as baby boomers age into retirement, resulting in higher costs for Social Security and Medicare. Loading... Historically, debt as a share of the economy tended to rise during recessions and then stabilize during economic expansions. More recently, the government has run large deficits even when the economy has been growing. The debt has doubled in size since 2017. And now the people who lend money to the government are demanding higher interest rates. How does this affect me? The federal debt affects all Americans indirectly, because it limits the government's ability to tackle other priorities. But it also affects some people more directly, by making it more expensive to borrow money. "When the government borrows this much and the rates for Treasurys go up, that brings up the rates for everything else, from mortgages to car loans to credit cards," says Michael Peterson, CEO of the Peter G. Peterson Foundation, which advocates for fiscal responsibility. Mortgage rates, for example, tend to rise and fall with the yield on 10-year Treasurys, and the rate on 30-year home loans has climbed to near 6.7%, according to Freddie Mac. Loading... Is anyone in Washington working to address the debt? The Treasury Department has taken steps to limit the increase in long-term bond yields. Yields fell on Wednesday after Treasury Secretary Scott Bessent announced that the department would increase its buyback program for government bonds. But the move does nothing to solve the underlying problem, and the effect was short-lived. The yields on 10- and 30-year Treasurys rebounded on Thursday. Earlier, the Treasury had taken steps to prop up the Japanese yen so that Japan would not be tempted to sell some of its own U.S. Treasurys. (Buying bonds pushes yields down, while selling pushes yields up.) Ultimately, Congress will have to raise taxes, cut spending or — most likely — do both. While some lawmakers used to proudly say they were deficit hawks, fiscal discipline has generally fallen out of favor in Washington. But anxious signals from the bond market could change that. "$40 trillion should be a wake-up call," said Carolyn Bourdeaux, executive director of the Concord Coalition, a deficit watchdog group. "Both parties helped bring us here, and both parties now have a responsibility to change course." Correction Aug. 20, 2026 An earlier version of this story misspelled Carolyn Bourdeaux’s last name as Bordeaux.

La crisis de deuda de Estados Unidos (EEUU) se recrudece a pasos agigantados. Este jueves, el endeudamiento de la mayor economía del mundo ha alcanzado por primera vez en la historia los 40 billones de dólares (34,4 billones de euros), según consta en los registros del Departamento del Tesoro del país. De esta forma, el pasivo se ha duplicado en menos de una década en un momento en el que la nación sufre una elevada inflación, especialmente ocasionada por la guerra de Irán y su impacto en los combustibles. Así, el equivalente al Ministerio de Economía del país norteamericano ha revelado que la deuda pública nacional ha escalado hasta los 40,047 billones de dólares (alrededor de 34,43 billones de euros). Este montante incluye la deuda en manos del público por importe de 32,26 billones de dólares (27,7 billones de euros) y otros 7,78 billones de dólares (6,7 billones de euros) en posiciones intragubernamentales. De esta forma, el endeudamiento de la nación que dirige Donald Trump ha aumentado en 1,5 billones de dólares (1,3 billones de euros) en lo que va de año, después de haber superado por primera vez los 39 billones de dólares (33,5 billones de euros) el pasado mes de marzo. Se entiende, pues, la enorme desconfianza que hay en los mercados sobre los bonos estadounidenses, los cuales han escalado su rentabilidad, o lo que es lo mismo, los inversores exigen más retribución por ellos al tener más riesgo. Tanto es así que el bono a 30 años llegó a superar cotas del 5%, máximos desde 2007. Precisamente, esta situación obligó al Tesoro de EEUU a intervenir con una recompra de deuda de hasta 4.000 millones de dólares. Esto frenó la rentabilidad de los bonos, es decir, aquellos que el país debe pagar a sus acreedores a modo de interés por prestarle dinero. La crisis de deuda de EEUU Sin embargo, la intervención del Tesoro y los esfuerzos de EEUU por evitar que Japón vendiera deuda norteamericana para ajustar su moneda no hacen que el endeudamiento estadounidense deje de crecer. Así, durante el segundo mandato presidencial de Donald Trump la deuda ha crecido en casi 4 billones de dólares (3,4 billones de euros). «Es asombroso lo predecible que puede llegar a ser el declive fiscal de una potencia mundial», ha lamentado Maya MacGuineas, presidenta del Comité para un Presupuesto Federal Responsable, después de que la deuda nacional de EEUU se haya duplicado en los últimos diez años y cuadruplicado «en menos de veinte». De este modo, la profesional ha señalado que la deuda pública estadounidense ha superado recientemente el tamaño de la mayor economía mundial, elevando los costes de los intereses por encima del presupuesto de Defensa nacional. «Cuanto más nos endeudamos, más exacerbamos la inflación, más relegamos otras prioridades presupuestarias y más vulnerables nos volvemos ante emergencias internas y turbulencias internacionales», ha advertido MacGuineas. Los intereses de la deuda son una de las principales partidas de gasto del Gobierno de EEUU. Por ello, Donald Trump ha presionado a la Reserva Federal (Fed) para que rebajase los tipos de interés. Sin embargo, dado los altos niveles de inflación que se están registrando, las autoridades monetarias han decidido mantenerlos en su última reunión e, incluso, se habla de posibles subidas.

The U.S. government debt has surpassed for the first time the symbolic threshold of 40,000 trillion dollars, according to data published by the Treasury Department, as borrowing costs rise. Ouest-France After the latest bond issuance on Tuesday, August 18, 2026, the U.S. Treasury debt now reaches 40,047 trillion dollars, due to higher borrowing costs tied to health and Social Security, but also due to interest payments. A new disappointment for the Trump administration, which had promised during the 2024 presidential campaign to make purchasing power and inflation reduction its main battlegrounds. This is a faster rise than expected, with the Congressional Budget Office (CBO) previously forecasting federal debt around 39.4 trillion dollars by year’s end. It comes as inflation fears, notably with the Middle East conflict and soaring energy prices, have pushed borrowing costs to levels not seen in years. The yield on long-term Treasury bonds (30-year) thus reached Tuesday its highest level since 2007. This forces the government to spend even more to refinance, further increasing its debt. The Treasury Department intervened on Wednesday by announcing broader purchases of long-term bonds starting in September, which reassured investors and eased rates. "It is well known that the federal government has a deficit pace that is unsustainable," noted Jessica Riedl, budget specialist at the Brookings Institution. The nation’s debt has more than doubled since the 2008 financial crisis and now represents a debt-to-GDP ratio of nearly 125% of the U.S. gross domestic product (GDP). While deficits of 3% to 4% of GDP used to worry financial markets, Ms. Riedl noted that these levels are now around 6% to 7% of GDP. "That has made markets more nervous," she added. Donald Trump promised during his two terms to cut government spending and reduce the annual deficit. Treasury Secretary Scott Bessent had indicated that his goal was to bring the U.S. deficit back to 3% of GDP. However, the deficit has widened in recent months, due in particular to the repayment of tariffs to companies, struck down by the Supreme Court in February. Tax cuts and military spending, especially related to the conflict with Iran, have also consumed many billions of dollars. Analysts emphasize that there is no debt-to-GDP threshold that automatically triggers a crisis. They also note that debt held by the public—which excludes intragovernmental claims—is generally a more closely watched indicator than total debt. "But from a psychological standpoint, it is these benchmarks that alert financial markets to the need to revisit the rise in debt," Ms. Riedl said. Federal borrowing surged during the 2007-2009 financial crisis and again sharply during the Covid-19 recession, recalls Caleb Quakenbush, director of budget policy at the Bipartisan Policy Center, to AFPA. According to him, the trajectory of U.S. budget outlays has not been meaningfully or sustainably addressed by Congress or by U.S. administrations, posing serious challenges in the event of a new crisis. Debt in the United States exceeds 40,000 trillion dollars NASA announces failure of its mission to rescue a telescope in orbit Meta judged in the United States: security tools were ‘designed to fail,’ charges a former group engineer Cincinnati Masters 1000. Arthur Fils defeats Alex De Minaur in two sets and advances to the quarterfinals Helicopter crash in Kenya: the Ecuadorian intelligence chief and five Americans among the victims Several “tons of nuclear material” found in Syria, IAEA suspects misuse The United States sanctions the president of the International Criminal Court, Japanese Tomoko Akane VIDEO. "Shut up! You are fake news!": Donald Trump lashes out at a journalist The Trump administration lashes out at a CNN journalist after a question deemed unpleasant Kuril Islands: Japanese ambassador to Russia summoned to the Ministry of Foreign Affairs

Lisa DesjardinsLisa Desjardins Leave your feedback Total public debthit $40 trillion Wednesday, faster than expected. There is a lot to unpack about the national debt, which is easily misunderstood. Here's a starter guide to what's happening with the national debt right now. There are many ways tomeasure the national debt.This $40 trillion figure represents the total debt of the United States government. Also known as the "gross debt" (bonus as a double entendre). Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. Thank you. Please check your inbox to confirm. This includes all the debt owed to others as well as what the government owes itself. Thus, it includes IOUs to the Social Security Trust Fund, from which the U.S. has borrowed for years. How big is $40 trillion?More than the median value of every single-family home in America. It is, as you might expect, a massive figure. Watch the segment in the player above. There are two primary reasons: unexpected economic shocks and political convenience. This century, two major shocks have rocketed up the deficit: the 2009 recession and, starting in 2020, the COVID-19 pandemic. You can see these moments clearly inthis chart from the U.S. Treasury, depicting the deficit increases around both events. (Deficits are the annual amount the U.S. government spends over what it brings in.) Graphic by Treasury Department But also look at the deficit levels after the pandemic, to 2023 and beyond. Deficits remained at higher levels than prior years. That is a question of political priorities and decisions in Washington. Both parties have repeatedly solved problems by spending money. And Republicans have cut taxes, which they argue helps the economy overall, but which at least in the short term can affect the revenue coming into the Treasury. U.S. debt is a cornerstone financial instrument around the world. If we are to compare, we want to look at the debt in terms of the economy of each country, measured by gross domestic product (GDP). There are a few ways to calculate this, be aware. But here is the International Monetary Fund's most recentestimates of gross national debt to GDP. For the United States, our total government gross debt-to-GDP ratio is 125.8%,according to IMF's tracker. In other words, our total debt is some 125% of what the nation produces in a year. We owe more than we can make in a year. Just eight nations in the world have a higher debt-to-GDP figure than the U.S. A few things.The Federal Reservewrote about this last year.Japan's economy has multiple challenges, including an aging population and years of a relatively stagnant economy. Not really.Japan's debt structure is notably different. Its debt is overwhelmingly held by its own domestic banks. Thus, there is less risk of outside investors panicking and selling the debt in a fiscal crisis. Here is ashort story from Fortunethat covers this as well as Japan's higher household savings rate, which also helps it manage its debt. After hitting the $40 trillion milestone, U.S. debt is now on track toreach $50 trillionin a few short years. It is alreadycausing major issuesin the bond market. The interest payments on the nation's debtare already largerthan what we spend on national defense or Medicare. There are several groups urging Congress to start making tough decisions now – including the Committee for a Responsible Federal Budget (which offers an interactive"debt fixer" toolwe love), theCato Institute, thePeter G. Peterson Foundationand theConcord Coalition.If lawmakers do not start adjusting spending and revenues soon, those decisions will become harder. The choice ahead for lawmakers is not an easy one: They must decide to make these tough decisions now or they can make deeply painful ones, with fewer options, later. Support trusted journalism and civil dialogue. Left:Peter G. Peterson Foundation National Debt Clock as seen in Atlanta, Georgia, in June. Photo by Derek White/Getty Images for the Peter G. Peterson Foundation ByAssociated Press ByJosh Boak, Associated Press ByJosh Boak, Associated Press Lisa DesjardinsLisa Desjardins Lisa Desjardins is a correspondent for PBS News Hour, where she covers news from the U.S. Capitol while also traveling across the country to report on how decisions in Washington affect people where they live and work. Total public debthit $40 trillion Wednesday, faster than expected. There is a lot to unpack about the national debt, which is easily misunderstood. Here's a starter guide to what's happening with the national debt right now. There are many ways tomeasure the national debt.This $40 trillion figure represents the total debt of the United States government. Also known as the "gross debt" (bonus as a double entendre). Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. Thank you. Please check your inbox to confirm. This includes all the debt owed to others as well as what the government owes itself. Thus, it includes IOUs to the Social Security Trust Fund, from which the U.S. has borrowed for years. How big is $40 trillion?More than the median value of every single-family home in America. It is, as you might expect, a massive figure. Watch the segment in the player above. There are two primary reasons: unexpected economic shocks and political convenience. This century, two major shocks have rocketed up the deficit: the 2009 recession and, starting in 2020, the COVID-19 pandemic. You can see these moments clearly inthis chart from the U.S. Treasury, depicting the deficit increases around both events. (Deficits are the annual amount the U.S. government spends over what it brings in.) Graphic by Treasury Department But also look at the deficit levels after the pandemic, to 2023 and beyond. Deficits remained at higher levels than prior years. That is a question of political priorities and decisions in Washington. Both parties have repeatedly solved problems by spending money. And Republicans have cut taxes, which they argue helps the economy overall, but which at least in the short term can affect the revenue coming into the Treasury. U.S. debt is a cornerstone financial instrument around the world. If we are to compare, we want to look at the debt in terms of the economy of each country, measured by gross domestic product (GDP). There are a few ways to calculate this, be aware. But here is the International Monetary Fund's most recentestimates of gross national debt to GDP. For the United States, our total government gross debt-to-GDP ratio is 125.8%,according to IMF's tracker. In other words, our total debt is some 125% of what the nation produces in a year. We owe more than we can make in a year. Just eight nations in the world have a higher debt-to-GDP figure than the U.S. A few things.The Federal Reservewrote about this last year.Japan's economy has multiple challenges, including an aging population and years of a relatively stagnant economy. Not really.Japan's debt structure is notably different. Its debt is overwhelmingly held by its own domestic banks. Thus, there is less risk of outside investors panicking and selling the debt in a fiscal crisis. Here is ashort story from Fortunethat covers this as well as Japan's higher household savings rate, which also helps it manage its debt. After hitting the $40 trillion milestone, U.S. debt is now on track toreach $50 trillionin a few short years. It is alreadycausing major issuesin the bond market. The interest payments on the nation's debtare already largerthan what we spend on national defense or Medicare. There are several groups urging Congress to start making tough decisions now – including the Committee for a Responsible Federal Budget (which offers an interactive"debt fixer" toolwe love), theCato Institute, thePeter G. Peterson Foundationand theConcord Coalition.If lawmakers do not start adjusting spending and revenues soon, those decisions will become harder. The choice ahead for lawmakers is not an easy one: They must decide to make these tough decisions now or they can make deeply painful ones, with fewer options, later. Support trusted journalism and civil dialogue. ByAssociated Press ByJosh Boak, Associated Press ByJosh Boak, Associated Press

WASHINGTON, Aug 19 (Reuters) - Total U.S. debt has topped $40 trillion for the first time, the Treasury Department said on Wednesday, drawing fresh warnings that a fiscal crisis is brewing as ballooning costs for social safety-net programs and interest payments far outstrip revenues held back by tax cuts. The Treasury's latest daily cash and debt balances statement showed total public debt outstanding at $40.047 trillion on Tuesday, a total that includes Treasury securities held by the public of $32.266 trillion and intra-governmental debt holdings of $7.782 trillion. Sign up here. The federal government's IOU has now more than doubled in less than a decade, from $19.95 trillion when President Donald Trump was sworn in for the first time in January 2017. Roughly one-third of that increase occurred during two years of frantic government borrowing to fund the COVID-19 pandemic responses undertaken by Trump and former President Joe Biden, while the fiscal policy choices of both presidents combined with long-running tax-and-spending imbalances account for the rest. Budget watchdog groups have anticipated crossing the threshold for weeks and issued stark warnings that a full-blown debt crisis could erupt unless lawmakers confront an unsustainable fiscal outlook and raise taxes, cut spending or both. "Forty trillion dollars of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another," said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. "The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad," MacGuineas said in a statement just after the Treasury data was released. She said the $40 trillion figure was reached less than five months after debt reached $39 trillion, and has quadrupled in less than 20 years after taking until 1981 to reach $1 trillion for the first time. "It is staggering how predictable the fiscal decline of a global power can become," MacGuineas added. Global U.S. creditors may already be growing wary, with demand from foreign investors holding nearly one third of Treasuries declining over the past year. Days after a $25-billion auction of 30-year Treasury bonds went off at the highest yield since 2021, yields on so-called long bonds on Tuesday hit their highest levels in nearly two decades as investors demanded greater compensation in the face of hefty U.S. government bond issuance. Yields move inversely to bond prices. On Wednesday, U.S. Treasury Secretary Scott Bessent took a bold step to push long bond yields back down, announcing a doubling of buyback sizes for 10- to 30-year Treasuries to at least $4 billion per operation. Higher Treasury yields at the longer end tend to push up interest rates for mortgages, car and commercial loans. With the mountain of debt showing no signs of abating, Trump on Wednesday repeated his frequent demand for lower rates. Asked at the White House whether Americans should worry about bond market volatility, Trump said: "I don't think so at all. I think we have a very powerful country, and we're powering through these ridiculous interest rates — they're ridiculous. Look, when our country is strong, interest rates should go down." PANDEMIC SPENDING, AND THEN SOME The Treasury last week reported the fourth-highest monthly deficit in U.S. history — $432 billion for July — as tariff refunds turned customs receipts negative for the third month in a row and outlays for Social Security and Medicare benefits for seniors continued to grow. The deficit for the first 10 months of fiscal 2026 has already exceeded the total gap for all of fiscal 2025 with two months to go in the current fiscal year. Trump has largely ignored the dwindling number of fiscal hawks in his Republican Party, championing heavy spending across his two terms. Public debt rose by $7.8 trillion during Trump's first term, with more than half of it accumulating during the pandemic response over his last nine months in office. Since Trump took office a second time in January 2025, the U.S. debt load has increased by $3.8 trillion, for total growth of $11.6 trillion across his two terms so far. Public debt increased by $8.4 trillion during Biden's term, also marked by heavy COVID-19 recovery spending, but driven as well by big-ticket outlays for infrastructure investment, clean energy subsidies and other priorities championed by his Democratic Party. The Committee for a Responsible Federal Budget estimates that the policy choices of Trump and Biden have increased the federal debt trajectory beyond what would have accumulated under the existing spending statutes when each took office. For instance, Trump's landmark second-term legislative package — the One Big Beautiful Bill Act — will add another $4.7 trillion in debt, according to the Congressional Budget Office, the nonpartisan bookkeeper for federal lawmakers. Trump has branded his second presidency as one focused on cost-cutting, marked by early federal agency job cuts ordered by the non-governmental Department of Government Efficiency. But much of his spending reductions have targeted so-called "discretionary" programs, the smallest portion of the federal budget. The U.S. spends roughly $7 trillion annually, and 60% of it is earmarked for so-called "mandatory" programs, including payments for Social Security, Medicare, Medicaid and veterans' care, that generally grow to keep pace with living costs. Another $1.1 trillion pays the interest on U.S. borrowing, the cost of which rises as the debt pile grows and as interest rates climb. The 2025 fiscal-year budget marked the first time debt service costs exceeded Pentagon funding. In the first 10 months of the 2026 fiscal year, interest costs have eclipsed Medicare healthcare outlays to become the second-largest line item in the federal budget, behind the Social Security pension system. The U.S. is spending more to fund the retirement and healthcare costs of the "baby boom" generation, straining the trust funds behind Social Security and Medicare even as payroll and income tax revenues fall short of covering federal costs. Reporting by David Lawder and Jacob Bogage; additional reporting by Steve Holland; Editing by Dan Burns, Paul Simao and Nia Williams Our Standards: The Thomson Reuters Trust Principles.

US debt hits US$40 trillion high, raising ‘doom loop’ risk. Total public debt has surged by a third in under five years, and there’s no end in sight. Total US public debt surpassed US$40 trillion for the first time, and has now surged by a third in less than five years, as US lawmakers continue to shrug off calls to contend with historically wide financial deficits. Public debt outstanding stood at US$40.05 trillion as of the close of business on Tuesday, a US Treasury Department release on Wednesday showed. The crossing of the US$30 trillion mark only dates back to January 2022. And there is no end in sight. Republicans have long opposed revenue-raising tax increases, while both parties have been loath to sign on to politically toxic cuts to healthcare and retirement benefits for seniors. Many observers anticipate Congress and the administration of the day will only act if forced by a financial-market disruption. That is not for lack of talk about the issue in Washington. US Treasury Secretary Scott Bessent, for one, said a key reason he got involved in politics was to help tackle deficits running at a pace unprecedented for times outside of major wars, pandemics or depressed job markets.

Supported by U.S. Debt Hits $40 Trillion as America’s Borrowing Binge Continues President Trump’s promises to restore fiscal order and reduce the amount of America’s debt burden have been undercut by spending on the Iran war, tax cuts and tariff refunds. America’s gross national debt topped $40 trillion for the first time on Wednesday, an ominous milestone for an economy that sits on a shaky fiscal foundation after decades of borrowing to pay for the rising costs of the military, social safety net programs and President Trump’s tax cuts. This year alone, the United States is on track to borrow more than $2 trillion to help pay for its obligations, including spending on the war in Iran and the sweeping tax cuts that Republicans enacted in 2025. Soaring interest payments to investors who have purchased America’s debt now make up about half of that red ink, pushing the United States into a deeper financial hole. National debt as a percentage of G.D.P. Whether the mounting debt load is a problem to be solved or a function of America’s economic strength remains a matter of debate. Deficits are also a point of political gamesmanship, with Republicans most passionate about eliminating them when they are out of power. “The scariest thing about this is how we’re starting to see the debt spiral begin,” said Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget, which supports deficit reduction, referring to interest on the debt. The inability of lawmakers to confront the debt comes with long-term risks. While the United States remains the world’s largest economy, its mounting debt load could lead investors to demand higher interest rates for U.S. bonds or raise questions about the nation’s creditworthiness, which could erode confidence in the dollar as the world’s reserve currency. 30-year U.S. Treasury yield Related Content Advertisement

Supported by Guest Essay An Ancient Sumerian Solution to Our $40 Trillion Deficit The U.S. federal debt has hit $40 trillion. Add the debt owed by U.S. states, corporations and consumers, and the figure rises to about $77 trillion in debt, set against an annual gross domestic product of about $32 trillion. The interest on all of it is compounding constantly. It’s not just the United States, either. Globally, there is $350 trillion in debt, roughly treble global G.D.P. It’s like snowpack on a mountainside. It may look stable right now, but it’s creating the conditions for an avalanche. We are past the point where we can deal with our current debts in normal ways. The options open to us are extremely unlikely or highly destructive: Grow our way out of it, raise taxes, inflate the debt away or wait for the economic fallout. Ancient societies had another method to deal with debt. It was called an amargi — a blanket declaration of public debt cancellation. All public debts written off. Disappeared. It sounds laughable, I know. But, really, that’s just because the idea has been buried so deeply in history that you’ve probably never heard of it. In the ancient world, it presented a pragmatic solution to an intractable problem. And now, faced with impossible-to-repay debts that are weighing down our economy, is the time to look at the amargi and the lessons it offers about how to think about finance. The ancient Mesopotamians are credited with inventing money. They invented loans and compound interest. They understood this system and its propensity for breakdowns when debts spiraled. That’s why they invented something else, too. About 4,400 years ago, a Mesopotamian king named Enmetena issued an edict: Essentially all public debts, he declared, were canceled. (Amargi typically left debts between merchants in place.) People who had been sold into bondage were freed. Similar edicts gave back land to farmers who had lost it to creditors. The campaign was called “return to mother,” the origin of the Sumerian word “amargi.” The word loses something in the translation across eons and languages, but essentially it’s a synonym for “freedom.” The concept was codified in the Old Testament book of Leviticus, which decreed a “year of the Lord’s favor” every 50 years. The amargi was a response to a persistent problem that was recognized in the ancient world: Debt compounded until it destabilized society. Get enough citizens sold into slavery and enough abandoned farms and society crumbles. Nobody to grow the crops. Nobody to serve in the armies. The amargi was a relief valve, a final rebalancing tool. It was declared in the ancient Near East regularly when new rulers came to power. These actions were magnanimous but also practical. They allowed society to reset rather than being forced into monetary collapse. People who were owed money were, predictably, not always happy about the amargi. In Athens, the ruler Solon instituted a series of reforms around 594 B.C. that canceled debts. The changes were bitterly opposed by the ruling elite. Solon managed to make the reforms stick, but only after leaving town for a decade and making his people promise not to change the new laws in his absence. Related Content Advertisement

TOI correspondent from Washington: The United States’ national debt crossed $40 trillion on Tuesday, a number so large that even breaking it up with commas can scarcely make it comprehensible. As in a 4 followed by 13 zeroes: $40,000,000,000,000! Number-crunching economists reached for various metrics to convey the scale of the crisis. The US economy produces roughly $33 trillion worth of goods and services a year. So the debt is now bigger than the entire annual economic output (GDP) of the country. Per American, that works out to roughly $118,000; for a family of four, about $472,000. Divvying it another way, the US is adding debt at a rate of roughly $90,000 every second. Amid The Urge To Splurge, Trump Has Proposed Hike Of 50% In Def Budget To put that in perspective for readers in India, the $40 trillion debt America has racked up is roughly 10 times the size of India’s entire annual economy. In other words — although debt versus GDP is not an apples-to-apples comparison — the US owes roughly ten times the value of everything India produces in a year. America’s debt mountain is therefore not merely bigger than India’s economy; it is about ten Indian economies stacked on top of one another. Economists also put the best possible spin by pointing out that the raw number itself is less important than debt relative to the size of the economy and the government’s ability to service it. Just the US debt held by its public is roughly equal to annual GDP, and the Congressional Budget Office says that, under current law, the ratio could rise to 120% of GDP by 2036 and 175% by 2056. So how did the world’s richest country get here? In the simplest terms, Washington has been spending more than it collects in taxes — year after year, administration after administration. Wars, tax cuts, the 2008 financial crisis, Covid stimulus, an ageing population and rising Social Security and Medicare costs have all added to the bill. The pandemic was particularly spectacular: debt exploded as the government tried to prevent an economic catastrophe. But the extraordinary thing is that America has continued borrowing heavily even after the emergencies have passed. Federal budget deficits are still running at levels normally associated with wars or recessions. The awkward question for Washington now is whether the borrowing eventually stops gently — or with a crash. So who is lending America $40 trillion? Surprisingly, America is not mainly borrowing from China. The biggest lenders are actually Americans and American institutions – pension funds, mutual funds, banks, insurance companies, households and investment funds. Foreign governments and investors also buy what is euphemistically called “US Treasury securities”: Japan held about $1.12 trillion in June, Britain about $940 billion, China about $633 billion and India roughly $200 billion.But why lend to a country this deeply in debt? Because US “Treasury securities” remain the world’s favourite financial equivalent of a steel safe with a very large lock. They are highly liquid, easily traded and backed by the world’s largest economy — as well as by Washington’s long-established record of paying its debts. In other words, America has been able to borrow on an extraordinary scale because the world keeps saying: Yes, Uncle Sam, we’ll take your IOU. For now. President Trump has repeatedly promised to reduce the national debt, including by using tariff revenue. But the arithmetic has not exactly been taking orders from the White House. Amid the irresistible American urge to splurge, Trump is proposing a $1.5 trillion military budget, roughly a 50% increase from recent levels and an unprecedented level of Pentagon spending, arguing that a stronger military is essential to national security. So America is essentially trying to lose weight while ordering a second dessert; spending like a drunken sailor on shore leave — and then promising the bartender that tariffs will somehow pay the tab. And debt is not merely about the amount borrowed. It is also about the interest bill. Interest payments are now approaching $1 trillion a year. That means an increasing share of the federal budget is going simply toward servicing yesterday’s borrowing rather than paying for today’s schools, roads, defence, healthcare or anything else Washington wants to spend money on. As the debt grows, investors could eventually demand higher interest rates to keep buying Treasury securities. That would feed through into mortgage rates, business borrowing costs and the government’s own financing costs, potentially slowing investment and economic growth. The US would then face the unpleasant menu economists have been warning about for years: higher taxes, slower spending, cuts to benefits, faster economic growth, inflation — or some combination of all of them. Washington would have to bring spending and revenues into better balance: restrain the growth of entitlement programmes, control discretionary spending, reconsider tax cuts, raise more revenue and — hardest of all — persuade voters that there is no painless option. There is no magic button marked “Pay Off $40 Trillion.” The CBO’s is essentially warning that the longer Washington waits, the more painful the eventual adjustment becomes. That is America’s peculiar fiscal paradox: the world’s richest country can afford an enormous debt — until one day the debt becomes so enormous that it starts deciding what the world’s richest country can afford. Or as one economist might put it, there is no such thing as a free lunch -- just a lunch somebody has put on the national credit card.

Democracy Dies in Darkness By David J. Lynch and Steve Thompson Year after year, the federal government has spent more than it collected in taxes. Each annual shortfall increased the national debt, slowly at first and then by leaps, defying warnings of an inevitable reckoning. Subscribe for unlimited access to The Post You can cancel anytime. Subscribe What readers are saying The comments largely criticize Republican fiscal policies, particularly tax cuts for the wealthy and increased spending under presidents like Reagan, Bush, and Trump, which are blamed for the national debt reaching $40 trillion. Many commenters argue that these policies have... Show more This summary is AI-generated. AI can make mistakes and this summary is not a replacement for reading the comments. Comments 2,192 Related Articles Steve Thompson U.S. debt hits $40 trillion faster than forecasters expected August 19, 2026 Steve Thompson and Riley Beggin U.S. debt is set to hit $40 trillion, months earlier than expected, as bond yields rise August 18, 2026 David J. Lynch and Steve Thompson Here’s what’s behind the bond market roller coaster August 20, 2026 Jarrell Dillard House Republicans release $95 billion spending bill with no offsets, which could endanger support July 15, 2026 David J. Lynch and Evan Halper Iran war, tariffs raise new risks for a resilient U.S. economy July 25, 2026 * Riley Beggin GOP tax law fuels steeper deficits, partly buffered by Trump’s tariff revenue February 11, 2026 View 3 more storiesView 3 more stories NewsletterWeekdays The 7 Catch up quickly with a rundown of the 7 most important and interesting stories. !pixel

JAKARTA – The United States national debt has超过40 trillion dollars for the first time. Its value is now more than double what it was when Donald Trump entered the White House in 2017. Anadolu Agency, cited Thursday, August 20, quoting figures from the U.S. Treasury Department, reported that the United States’ total national debt reached $40.047 trillion on Tuesday. The day before, the figure was still $39.987 trillion. Of this amount, about $32.266 trillion are public debts. The remaining $7.782 trillion are intergovernmental debts of the federal government. When Trump took office in January 2017, the U.S. federal debt stood at about $19.95 trillion. The figure reached $27.75 trillion by the end of his first term. The debt then reached about $36.22 trillion during the four years of Joe Biden’s administration. Since Trump returned to office, the amount has risen by another about $3.8 trillion. Overall, the federal debt has increased by about $11.6 trillion during Trump’s first term and his second term so far. During Biden’s term, the increase has been about $8.5 trillion. The rise in debt is mainly due to ongoing budget deficits, pandemic-related loans, tax cuts, increased spending on social programs, and higher interest costs. The crossing of the U.S. debt to $40 trillion is expected to heighten concerns about the country’s fiscal viability. Debt service costs are also taking up an ever-larger share of the federal government’s revenues. The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always regard Indonesian as our main language. (system supported by DigitalSiber.id)

The latest daily cash and debt report from the Treasury indicates that the total outstanding public debt stood at $40,047 billion on Tuesday. This amount includes $32,266 billion of Treasury securities held by the public and $7,782 billion of intragovernmental debt. The federal government’s debt has now more than doubled in less than a decade, compared with $19,950 billion at the time of President Donald Trump’s first inauguration in January 2017. About a third of this increase occurred during two years of massive borrowing to fund pandemic response measures under Trump and former President Joe Biden. The rest is explained by the budget policy choices of the two presidents, combined with structural imbalances between tax revenues and public spending. Budget watchdogs had anticipated breaching this threshold for weeks. They issued stern warnings, stating that a true debt crisis could erupt if lawmakers do not tackle an unsustainable budget trajectory with tax increases, spending cuts, or a combination of both. "Forty trillion dollars of debt doesn’t exist only in government records; it is felt throughout the economy and ends up impacting citizens’ portfolios in one way or another," said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget (CRFB). "The more we borrow, the more we exacerbate inflation, the more we crowd out other budget priorities, and the more vulnerable we become to national emergencies and international turbulence," Ms. MacGuineas noted in a statement released shortly after Treasury data were disseminated. She noted that the $40 trillion mark was reached less than five months after the $39 trillion milestone. The debt quadrupled in less than 20 years, whereas it took until 1981 to reach its first trillion dollars. "It is astonishing how predictable a budget decline for a global power can become," she added. International creditors of the United States could already be showing signs of concern, as foreign investor demand — which holds nearly a third of Treasury bonds — has declined over the past year. A few days after a $25 billion auction of 30-year Treasury bonds at the highest yield since 2021, long-term bond yields reached their highest level in almost two decades on Tuesday. Investors are demanding higher compensation in light of massive issuances of U.S. government securities. For reference, yields move inversely to bond prices. On Wednesday, U.S. Treasury Secretary Janet Yellen announced a strong step to lower long-term yields, revealing a doubling of the volume of buybacks for maturities of 10 to 30 years, to at least $4 billion per operation. The rise in Treasury yields on the longer end of the curve tends to push up mortgage rates, auto loan rates, and commercial loan rates. As the debt mountain shows no signs of receding, Donald Trump reiterated on Wednesday his recurring call for lower rates. Asked at the White House about Americans’ potential concern about bond market volatility, Donald Trump replied: "I don’t think so at all. I think we have a very powerful country, and we’re going to get through these ridiculous interest rates — they’re ridiculous. Look, when our country is strong, interest rates should be lower." ENTITLEMENTS AND MUCH MORE The Treasury reported last week the fourth-largest monthly deficit in U.S. history — $432 billion for July — as tariff refunds left customs receipts negative for the third consecutive month, and Social Security (retirements) and Medicare (senior health insurance) expenditures continued to grow. The deficit for the first ten months of fiscal year 2026 has already surpassed the total shortfall of the entire 2025 fiscal year, with two months remaining before the current year closes. Donald Trump has largely ignored the shrinking number of "budget hawks" within his Republican Party, advocating massive spending throughout his two terms. Public debt rose by $7,800 billion during Trump’s first term, with more than half accumulating during the pandemic response in his last nine months in office. Since Donald Trump took office for a second term in January 2025, the U.S. debt burden has risen by $3,800 billion, for a total growth of $11,600 billion across both terms so far. Public debt increased by $8,400 billion during Joe Biden’s term, also marked by substantial post-COVID-19 stimulus spending, but also by massive investments in infrastructure, clean energy subsidies, and other priorities championed by the Democratic Party. The Committee for a Responsible Federal Budget estimates that the policy choices of Trump and Biden have pushed the trajectory of federal debt well beyond what would have accumulated under the budgeting laws in place at the times they took office. For example, Trump’s flagship legislative program for his second term — the "One Big Beautiful Bill Act" — will add $4,700 billion in additional debt, according to the Congressional Budget Office (CBO), the nonpartisan budget agency of Congress. Donald Trump has presented his second presidency as focused on cost reduction, marked by job cuts in federal agencies ordered by the Department of Government Efficiency (DOGE), a non-governmental body. However, the bulk of his spending cuts targeted so-called discretionary programs, which account for the smallest share of the federal budget. The United States spends about $7 trillion per year, with 60% going to so-called mandatory programs, including Social Security, Medicare, Medicaid, and veterans’ care, which typically rise to keep up with the cost of living. Moreover, $1.1 trillion is allocated to interest payments on the debt, a cost that climbs as the debt stock grows and interest rates rise. The FY 2025 budget marked the first time that debt service costs exceeded Pentagon funding. In the first ten months of FY 2026, interest costs eclipsed Medicare health-spending to become the second-largest federal budget item, behind Social Security retirement. The United States spends more to finance the retirement and health care of the baby-boom generation, straining Social Security and Medicare trust funds, even as Social Security and income tax revenues no longer fully cover federal costs.