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The United States Debt Climbs by 6 Billion Dollars Per Day

16h05 ▪ 5 min read ▪ by Luc Jose A.
Getting informed Investissement
Summarize this article with:

The United States debt is rushing toward 38 trillion dollars, triggering deep doubt about the solidity of fiat currencies. In a world where economic balances are shaky, this threshold is no longer just a macroeconomic indicator. It becomes the reveal of a system under strain, and revives the debate about the place of alternative assets in the face of the exhaustion of classic budgetary models.

La dette des États-Unis grimpe de 6 milliards $ par jour

A Budgetary Trajectory Out of Control  

The U.S. federal debt has reached 37.9 trillion dollars and is expected to surpass 38 trillion in less than three weeks, according to data from the Joint Economic Committee of the U.S. Congress.

This pace of growth is particularly striking, as the debt increases by $69,890 per second, or 4.2 million per minute, which amounts to 6 billion dollars per day, a figure greater than the gross domestic product of more than thirty countries, according to Worldometer data.

U.S. Representative Keith Self has alerted on the severity of the situation stating: “Congress must act now, demand budgetary responsibility from your leaders before the gradual slide becomes a sudden collapse”.

Behind this dynamic, several factors illustrate the current inability of the U.S. government to curb the growth of public debt, despite budget rationalization efforts:

  • In a few months, the Trump administration tasked Elon Musk with overseeing a spending reduction program via the Department of Government Efficiency, generating 214 billion dollars in savings;
  • In July, Donald Trump signed the “One Big Beautiful Bill Act”, supposed to save 1.6 trillion dollars in federal spending;
  • However, implementation of this law is expected to cost 3.4 trillion over the next ten years, paradoxically contributing to increasing the debt;
  • Debt is expected to reach 50 trillion dollars within ten years if no structural changes are made, according to projections mentioned by Keith Self.

Thus, attempts at budget reforms, even ambitious on paper, seem ineffective in stopping the spiral of the United States debt.

Alternative Assets as a Response to Monetary Disorder

While debt explodes in the United States, investors are increasingly turning to assets seen as bulwarks against monetary depreciation. Last week, JPMorgan called bitcoin and gold preferred choices in a hedge strategy against currency value erosion, that is a direct response to the anticipated weakening of the dollar.

This market reading occurs in a context where bitcoin reached an all-time high of 125,506 dollars, while gold crossed a new record at 3,920 dollars. While these levels are unusual and to be verified over time, they nevertheless reflect a growing demand for alternative assets in the face of economic instability.

Major figures in institutional finance support this trend. Last January, Larry Fink, CEO of BlackRock and formerly skeptical about bitcoin, stated that crypto could rise to 700,000 dollars due to fears related to monetary devaluation.

Meanwhile, Ray Dalio, founder of Bridgewater Associates fund, recommended in July dedicating 15% of a portfolio to assets like gold or bitcoin to optimize the risk/return ratio. He highlights that Western countries, like the UK, are not immune to what he calls a “debt spiral”, thus reinforcing interest in safe haven assets.

The inexorable rise of American debt, dropped by China, gives renewed credit to decentralized assets like bitcoin. Between lost monetary trust and the search for refuges, markets are testing new benchmarks. The question remains whether these alternatives will sustainably impose themselves in a financial landscape undergoing reorganization.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.