Washington, D.C., November 16, 2024 — The Europe Today: The United States has reached a historic financial milestone, with its national debt surpassing $36 trillion for the first time, according to the US Debt Clock, a platform that tracks the nation’s financial metrics in real time.
The debt, which grew by nearly 6% between January and November, has been accumulating at an accelerating pace. It took less than four months to rise from $35 trillion, a level it reached in late July. In January 2024, the debt stood at $34 trillion.
Rapid Growth and Future Projections
The Congressional Budget Office (CBO) has projected an ominous trajectory, forecasting that the national debt will surpass 106% of GDP by 2027 and climb to 122% by 2034. A report from the International Monetary Fund (IMF) in July painted an even bleaker outlook, suggesting that under current policies, the debt-to-GDP ratio could exceed 140% by 2032.
The IMF also cautioned that escalating fiscal deficits and the rising debt-to-GDP ratio pose significant risks, not only for the United States but for the global economy. The report called for urgent fiscal adjustments to mitigate potential economic disruptions.
Expert Warnings
Tech entrepreneur Elon Musk, who has been involved in discussions about government efficiency, has issued stark warnings about the growing debt. “The interest on the debt is trending to rapidly absorb all tax revenue, leaving nothing for critical needs,” Musk wrote on X last month.
Musk warned that the nation could face a scenario where servicing debt interest would overshadow all other expenditures, leading to a potential fiscal crisis.
Implications and Challenges Ahead
The accelerating debt accumulation underscores the urgency of addressing America’s fiscal challenges. With mounting pressure from interest payments and rising deficits, experts and policymakers are calling for comprehensive reforms to ensure long-term economic stability.
The US Treasury has not yet officially confirmed the $36 trillion milestone, but the figures highlight the intensifying debate over fiscal policy and economic sustainability.
