The US national debt surpassed 37 trillion dollars this week, growing by more than one trillion dollars every 90 days on average. Interest payments on the debt are now the single largest line item in the federal budget, exceeding defense spending. The Congressional Budget Office projects the debt will reach 50 trillion dollars within the decade under current policy trajectories.
The political dynamics that have produced persistent deficits show no sign of changing. Both parties have shown willingness to add to the debt through their respective priority spending and tax cut programs. Credit rating agencies have signaled concern about the US fiscal trajectory, and foreign central banks have modestly diversified away from dollar-denominated assets, though the dollar's reserve currency status remains secure for now.
