Buyers are turning to safe-haven belongings, akin to Bitcoin and gold, because the US nationwide debt is nearing a record-breaking $38 trillion.
America’s nationwide debt, at the moment $37.9 trillion, has risen by $69,890 per second — or almost $4.2 million per minute — over the past yr, according to the US Congress Joint Financial Committee’s debt dashboard.
That equates to a staggering $6 billion per day, bigger than the gross home product of over 30 nations, in accordance with data from Worldometer.
US Consultant Keith Self said on Friday that the debt tally is about to surpass $38 trillion in weeks and probably even $50 trillion inside a decade, urging for imminent motion to be taken.
“Congress should act now — demand fiscal duty out of your leaders earlier than the gradual slide turns into a sudden collapse.”
At present charges, the US is anticipated to surpass $38 trillion in 20 days.
Buyers flock to Bitcoin and gold
Final week, JPMorgan touted Bitcoin (BTC) and gold because the “debasement trade” amid elevated uncertainty within the greenback.
It got here as Bitcoin hit a brand new all-time excessive of $125,506 on Saturday, whereas gold hit a recent excessive of $3,920 on Sunday.
Bitcoin’s fastened provide and decentralized nature have drawn elevated institutional consideration, with the likes of BlackRock CEO Larry Fink — as soon as a Bitcoin critic — stating in January that Bitcoin could hit $700,000 on forex debasement fears.
Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, beneficial in July that traders allocate 15% of their portfolios in laborious belongings like Bitcoin or gold to optimize for the “finest return-to-risk ratio.”
It’s not simply America, says Dalio
On the time, Dalio mentioned different Western nations just like the UK would face the identical “debt doom loop” concern and that their currencies would proceed to underperform relative to Bitcoin and gold, which he described as an “efficient diversifier.”
Reuters reported late final month that international debt grew to a document excessive of $337.7 trillion by the tip of the second quarter, fueled by extra quantitative easing and a softer US greenback, it mentioned, citing information from the Institute of Worldwide Finance.
Trump’s effort to gradual US debt
Chopping federal spending and lowering the deficit have been cited as coverage priorities beneath the Trump administration.
For a couple of months, the Trump administration introduced in Tesla CEO Elon Musk to help with the Department of Government Efficiency to scale back spending, saving $214 billion thus far.
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Nevertheless, President Donald Trump signed what he described because the “Massive Stunning Invoice Act” in July, in search of to save lots of greater than $1.6 trillion in federal spending.
Musk left as his 130-day restrict as a particular authorities worker neared its completion, whereas his beforehand sturdy relationship with Trump took a flip for the more serious.
Nevertheless, implementing that invoice helped push US debt previous $37 trillion and is anticipated to price $3.4 trillion over the following 10 years.
Because of the One Massive Stunning Invoice Act, the debt simply formally handed the $37 trillion mark. pic.twitter.com/x4iCOdL2q5
— Thomas Massie (@RepThomasMassie) August 13, 2025
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