Hambrox Ltd
24 Oct 2025
America’s national debt has topped $38 trillion and rising
The $38 trillion figure refers to the country’s gross national debt, i.e. the cumulative total of all federal borrowing, including debt held by government accounts and the public. For years experts have been warning that America’s fiscal trajectory is neither responsible, nor stable, nor sustainable. Their main concern is not so much the level of debt, but rather the rate at which the debt-to-GDP ratio is rising. The amounts the U.S. is adding to its debt obligations, through extra borrowing and spiralling interest payments, compared to how quickly its economy is growing is quite alarming. That ratio is currently around 125% according to the U.S. Treasury data and is expected to hit 156% by 2055, ceteris paribus.
Even for the world’s biggest economy, the level of debt that America has accumulated, and continues to add to it, is quite staggering. The problem isn’t the $38 trillion figure itself but the growing sense of complacency surrounding it. In fact, the global economy relies on the trading of government debts on the secondary market, which underlies the functioning of the entire bond market.
Such a high level of debt is resulting in exorbitant interest being paid to service it. As of September this year the U.S. spent $1.21 trillion in interest payments alone to maintain the debt. That’s 17% of total federal spending in fiscal year 2025. Alarmingly, the interest rates on U.S. government bonds are also increasing over time as a result of uncertainties caused by various influencing factors.
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