U.S. national debt reaches new high of $38.5 trillion

2026-01-06 10:20:10

Source: CryptoNewsNet Original Title: U.S. national debt reaches new high of $38.5 trillion Original Link: https://cryptonews.net/news/finance/32232034/ The crypto market isn’t alone in climbing this new year — the US national debt is soaring too.

The national debt has risen to $38.5 trillion, the highest amount the country has ever owed to domestic and foreign lenders, according to debt dashboards.

Over 70% of the national debt is owed to domestic lenders, while the rest is owed to overseas lenders, led by Japan, China, and the United Kingdom.

The raw number isn’t the whole story; it’s how it stacks up against the economy. The US GDP, which is the total value of everything produced in a year, sits closer to $30 trillion, equating to a debt-to-GDP ratio of over 120%. Think of it like your personal debt: borrowing $120 for every $100 you earn yearly.

This climb stems from big spending during the coronavirus pandemic and decades of fiscal spending on infrastructure, the military, and social programs. Interest payments alone now top $1 trillion annually, more than defence spending.

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