2025-12-25 15:26:08

The latest data is a bit unsettling. Over the next ten years, the interest costs on US public debt could reach $2.2 trillion—just listen to how outrageous this increase is, a 127% jump from the $970 billion in fiscal year 2025, more than doubling.

What does this mean? The government needs to borrow about $2 trillion annually to keep operations running. This new debt, combined with the old debt, causes interest expenses to snowball. The most exaggerated part is that at least half—yes, over 50%—of the new borrowing each year must be used specifically to pay interest.

Looking at it from another angle, this isn’t sustainable fiscal policy; it’s like walking a tightrope. Debt consumes the budget, and the budget pushes up borrowing needs—how can this vicious cycle be broken? The US is falling into an increasingly difficult fiscal dilemma with no easy way out.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
4
Repost
Share

Comment

0/400

MetaverseVagrant

· 6h ago

Doubling interest rates? The Federal Reserve is self-destructing --- So the US is just relying on printing money to survive, how long can this game go on --- Damn, half of the new debt is used to pay interest, this is worse than overdrawing my credit card --- The vicious cycle can't be broken, just wait for the dollar to depreciate, and retail investors will be the ones to get slapped in the face --- $2.2 trillion in interest costs... this number really can't hold up anymore --- If the US collapses, can the crypto market be safe? Feeling a bit anxious --- The fiscal cliff is coming sooner or later, holding some Bitcoin is the real deal --- The data sounds scary, but Wall Street might have already figured out the tricks --- That's why I've been all-in on Web3, can't play this fiat game

View OriginalReply0

¯\_(ツ)_/¯

· 6h ago

Has it doubled? Isn't this the rhythm of a printing press about to burn out? The Federal Reserve has to step in again to save the day. Basically, they can't keep playing like this anymore. 50% of the loans are used to pay interest? Who can stand that? It will blow up sooner or later. Wait, is this data real? The next candidate for a crash has appeared. Interest costs have surged to 2.2 trillion? Oh my God. This is like stabbing cryptocurrencies in the back. The US government's fiscal policies are so outrageous, no wonder people in the circle are bearish on the dollar. Money is becoming increasingly worthless.

View OriginalReply0

MEVHunterLucky

· 7h ago

Doubling interest costs? I really can't take it anymore, the US debt game won't last much longer --- Half of the new debt goes to pay interest, this logic is brilliant, a pure Ponzi scheme --- 2.2 trillion? That sounds ridiculous, who will rescue this debt spiral --- It's a dead loop, borrowing money to pay interest and then borrowing more, how to break it --- No way, paying half of the 2 trillion annual new debt in interest? I've seen this trick in the crypto world --- Is this how US finances work? Ha, good thing I went all in on crypto --- Interest doubling... wait, isn't this an inflation spiral --- Printing more money causes interest rates to soar, this logic makes sense --- Walking a tightrope is too elegant, this is just running straight off a cliff --- Basically, it's a debt trap, the US can't escape either

View OriginalReply0

defi_detective

· 7h ago

Oh my, these numbers really can't hold up anymore, the US debt explosion is happening at a rapid pace --- Doubling interest expenses, it feels like the dollar is about to cool down --- 50% of new debt is used to pay interest? This is basically a Ponzi scheme --- Dancing on a tightrope, sooner or later you'll fall, the only question is when --- If this death spiral doesn't break in a day, the opportunities in the crypto circle will keep coming, those who understand know --- The snowball has rolled to this extent, and in the end, it's not the common people who pay the bill --- So everyone stacking Bitcoin is just following this logic --- The debt vicious cycle has formed, printing presses might be the only way out --- It seems the end of fiat currency is near, better to get on board early

View OriginalReply0