The Rapid Increase of US National Debt
The rapidly rising US national debt is causing anxiety worldwide in the financial sector. Within about ten years, the debt of the USA has almost doubled from $18.2 trillion in 2015 to currently around $36.6 trillion. This development is further accelerated by the recently passed budget law “One Big Beautiful Bill,” which could increase the debt by an estimated $3 to $3.4 trillion by 2034.
Interest Burden and Rating Downgrade
The interest burden is rising sharply as well: Interest payments of nearly $800 billion are expected for the year 2025; in the long term, these costs could even exceed one trillion dollars annually. The rating agency Moody’s downgraded the creditworthiness of the USA in May 2025 (from Aaa to Aa1), which is seen as a reflection of growing concerns about the fiscal situation and the lack of political unity in combating the deficit. This downgrade could lead to higher yield demands on US government bonds, further increasing financing costs.
Warnings and Potential Risks
Financial experts and large investment banks like Goldman Sachs warn of an “unsustainable position” of US finances. The high budget deficit currently stands at five to six percent of GDP, along with the continuing increase in the debt ratio—currently around 123-124 percent of gross domestic product—fuels distrust in international capital markets. Investors are reacting with skepticism: Reports indicate intensified selling of US bonds and concerns about the value of the US dollar, which could have global implications.
Global Implications and Expert Opinions
In summary, the growing national debt in the USA leads to:
- Increased distrust among international investors towards Washington’s fiscal policy.
- Rising financing costs due to higher interest rates on government bonds.
- Rating downgrades that create further uncertainty.
- Direct effects on global financial markets, as US bonds play a central role.
These factors have experts warning of a potential “debt death spiral,” the consequences of which could extend far beyond the USA.