Reserve Dollar

Jerome Powell

Chair

Bitcoin

Reserve

The U.S. national debt has surged past $35 trillion, which is a new high. This number represents a growing problem that has expanded by nearly $1 trillion in just seven months and about $2.35 trillion over the last year.&nbsp; 
That’s roughly $6.4 billion added daily. The sheer scale of this debt is staggering, with implications that touch every American.&nbsp; 
Each person’s share of the debt stands at approximately $105,000, translating to around $266,000 per household. The debt-to-GDP ratio, which compares the country’s total debt to its economic output, is now at 121.7%. 
<img loading="lazy" decoding="async" class="alignnone wp-image-561850 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.28.32.png" alt="U.S. national debt hits all-time high of over $35 trillion" width="1920" height="338" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.28.32.png 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.28.32-300x53.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.28.32-1200x211.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.28.32-768x135.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.28.32-1536x270.png 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
This means the U.S. owes more than its entire economy produces in a year. The Congressional Budget Office (CBO) forecasts that this debt could exceed $56 trillion by 2034, with federal deficits possibly adding up to $22 trillion from 2025 to 2034. 
<h3 id="b-interest-payments-are-concerning-b">Interest payments are concerning</h3> 
The <a href="https://watcher.guru/us-debt" rel="nofollow noopener" target="_blank">rising</a> national debt brings with it an increase in interest payments, which have become the fastest-growing part of the federal budget.&nbsp; 
This means more taxpayer money is going toward servicing the debt rather than funding basic services like education, healthcare, or infrastructure.&nbsp; 
Federal Reserve Chair Jay Powell has said that the U.S. is “on an unsustainable fiscal path,” adding that the debt is growing faster than the economy itself. 
<figure id="attachment_554359" aria-describedby="caption-attachment-554359" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-554359 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Bitcoins-connection-to-stock-markets-is-about-to-revive-1.jpg" alt="U.S. national debt hits all-time high of over $35 trillion" width="1200" height="800" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Bitcoins-connection-to-stock-markets-is-about-to-revive-1.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Bitcoins-connection-to-stock-markets-is-about-to-revive-1-300x200.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Bitcoins-connection-to-stock-markets-is-about-to-revive-1-768x512.jpg 768w" sizes="(max-width: 1200px) 100vw, 1200px">
 <figcaption id="caption-attachment-554359" class="wp-caption-text">
 Jerome Powell giving his testimony to the Senate: Credits: Bloomberg
 </figcaption>
</figure> 
The credit rating agencies have taken notice. Both Moody’s Investors Service and Fitch Ratings have downgraded their outlook on U.S. debt.&nbsp; 
They cited concerns about fiscal deterioration and the endless debates over the debt ceiling.&nbsp;The downgrades could lead to higher borrowing costs for the U.S., making it even more expensive to manage the debt. 
The ballooning national debt has triggered intense political debate. In Washington, arguments over how to address the issue are heating up, but clear solutions remain elusive.&nbsp; 
<img loading="lazy" decoding="async" class="alignnone wp-image-561851 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.29.11.png" alt="U.S. national debt hits all-time high of over $35 trillion" width="1722" height="862" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.29.11.png 1722w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.29.11-300x150.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.29.11-1200x601.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.29.11-768x384.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-30-at-01.29.11-1536x769.png 1536w" sizes="(max-width: 1722px) 100vw, 1722px"> 
Politicians have talked about cutting spending or raising taxes, but concrete plans are in short supply, with many candidates offering few specifics on how they would tackle the problem. 
The American public is increasingly aware of the national debt, and many are concerned about its effect on future generations.&nbsp; 
The idea that their children and grandchildren will inherit a colossal financial burden is, of course, unsettling for many. This is putting pressure on lawmakers to find sustainable solutions. 
<h3 id="b-bitcoin-as-a-potential-solution-b">Bitcoin as a potential solution?</h3> 
Some advocates argue that Bitcoin could fix America’s debt crisis. We know that Bitcoin, with its fixed supply, acts as a hedge against inflation.&nbsp; 
As the American government continues to borrow and spend, Bitcoin’s appeal as a store of value might grow. This could protect savings from devaluation and offer a way to diversify investment portfolios. 
There are also expectations that the U.S. government could establish a Bitcoin reserve, specifically from the Republicans, though the idea has not gained widespread support. 
<img loading="lazy" decoding="async" class="alignnone wp-image-561852 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-30_01-31-13.png" alt="U.S. national debt hits all-time high of over $35 trillion" width="1920" height="1368" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-30_01-31-13.png 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-30_01-31-13-300x214.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-30_01-31-13-1200x855.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-30_01-31-13-768x547.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-30_01-31-13-1536x1094.png 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
Bitcoin could even drive economic growth and encourage fiscal discipline since it offers an alternative to traditional monetary policies. 
However, these ideas are still largely theoretical. The volatility of Bitcoin and the regulatory challenges it faces make it a risky proposition. While some see it as a possible solution to the debt crisis, others caution that it’s not a panacea.&nbsp; 
And so the debate over Bitcoin’s role in the U.S. economy continues, with no clear consensus in sight.

U.S. national debt hits all-time high of over $35 trillion

Table of Contents

Cryptopolitan_News

Other articles published on Jul 30, 2024

Will BONK’s recent gains hold against 840B token liquidations?

Solana Price (SOL) Faces Challenges at $200: Bulls Remain Active

Bitwise Announces 10% Donation of Ethereum ETF Profits to Open-Source Developers

SEC Charges BitClout Founder with Fraud and Misuse of Funds

Get Great Returns With Mpeppe (MPEPE) and Solana (SOL) With SOL Up 34% In a Month

Bitcoin SV Price Surges 8%, Eyes 2X Gains Amid BTC Correction

Join our free newsletter for daily crypto updates!