The national US debt mountain is expanding exponentially, with billions of dollars piled onto it each day. Remarkably, the amount of daily debt added is more than the total market capitalization of most crypto assets.
Total United States debt has risen by a whopping $275 billion in just one day. This has pushed it to a record $33.44 trillion.
Half of Bitcoin Market Cap in Debt
On October 4, Bitcoin pioneer Samson Mow compared the epic debt increase to Bitcoin’s market cap. It turned out to be more than half of that figure, around $267 billion.
“That’s something like 10 million BTC. And yet there are still people that are unsure if $27k is a good price to buy.”
Furthermore, it is more than the entire market cap of Ethereum, which is just under $200 billion at the moment. It also works out at about a quarter of the entire crypto market cap being added to the debt pile in just a day.
Two weeks ago, BeInCrypto reported that total US debt hit $33 trillion for the first time ever.
This means that the US has added $32 billion in debt per day for the last two weeks, observed the Kobeissi Letter. “At the current pace, the US will add $1 trillion of debt in a month,” it added.
Moreover, it has doubled since BeInCrypto reported that $14 billion was being added every day.
Read more: 2023 US Banking Crisis Explained: Causes, Impact, and Solutions
According to Goldman Sachs analysts, the cost of servicing Uncle Sam’s pile of debt is on track to hit a new record in 2025.
They said the rising cost of borrowing over the last year due to Federal Reserve interest rate hikes has pushed up the expenses on the US’s massive debt load.
Debt-to-GDP Ratio Surging
It cost the government $476 billion, or around 2% of the national GDP, to pay the interest on its debt in 2022. However, strategists estimated that interest payments will rise to 3% of GDP in 2024 and 4% of GDP by 2030.
Moreover, the Peter G. Peterson Foundation estimates that over the next decade, the US will spend a total of $10.6 trillion paying interest on the national debt mountain.
Other estimates predict the national debt-to-GDP ratio will grow at an accelerated rate. The federal debt could make up 181% of GDP by 2053, according to one projection from the Congressional Budget Office.
Finally, the debt ceiling remains unlimited until January 2025, so these mind-numbing figures will be the new normal.
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