US emerges as world’s largest debtor with $35.85 trillion debt

The United States has become the world’s largest debtor nation, with a staggering national debt of $35.85 trillion, according to the US Department of the Treasury.

This figure, three times the combined GDP of Japan, Germany, India, and the UK, has raised concerns about the sustainability of America’s economic model.

"If divided among its population, each American owes approximately $102,000," reports Russia Today.

In fiscal year 2024, the federal budget deficit of the country is projected to hit $1.8 trillion, marking a $138 billion rise from the previous year.

Debt servicing costs are also surging. In the last fiscal year, annual interest payments reached $659 billion—double Russia’s federal budget.

According to the Brookings Institution, the US spends $2 billion daily on interest payments, a sum capable of building dozens of schools or hospitals in developing nations.

The Congressional Budget Office warns that if current trends persist, annual interest payments could exceed $1 trillion by 2030.

America’s debt-to-GDP ratio has climbed to 123%, meaning its debts surpass the value of all goods and services produced in the country. While low interest rates historically kept payments manageable, rising rates now amplify fiscal pressures.

Analysts attribute this debt spiral to major spending on wars in Afghanistan and Iraq, the 2008 recession, and COVID-19 relief efforts, which added $5 trillion in stimulus packages.

"From George Washington to Barack Obama, it took 220 years to amass $12 trillion in debt," notes the US Federal Budget Archives. "From 2009 to 2024, that figure has tripled."

The burden isn’t just domestic. As of April 2024, the US owes $7.16 trillion to foreign creditors, with Japan and China as the largest lenders, holding $1.1 trillion and $750 billion, respectively.

German media outlet DW claims the global billionaire wealth pool wouldn’t suffice to repay even half of the US debt. With rising government spending and shrinking tax revenues, experts fear the situation could worsen.

In July, billionaire Elon Musk warned that excessive debt could bankrupt the US economy, suggesting radical measures like cryptocurrency adoption to stabilize finances.

For now, the world’s largest economy faces mounting fiscal challenges, as debates intensify over how to address its unsustainable debt growth.