US National Debt Hits $35 Trillion, Expected to Reach $56 Trillion by 2024
The United States’ national debt has officially surpassed the $35 trillion mark, raising concerns about the country’s fiscal stability. Experts predict that the debt could skyrocket to $56 trillion by 2024, with federal deficits potentially contributing an additional $22 trillion from 2025 to 2034.
A significant portion of this debt increase can be attributed to the COVID-19 crisis in 2020, during which the debt rose by $12 trillion. This translates to approximately $105,000 in debt per person. The surge in debt was fueled by extensive federal spending and economic stimulus measures, pushing deficit spending to levels not seen since World War II.
The rising debt poses significant challenges, as high interest rates further compound the already burdensome financial situation. Projections estimate that by 2034, the United States will spend around $1.7 trillion annually on interest payments alone. This grim fiscal reality emphasizes the urgent need to address the debt crisis.
Despite the pressing need for a solution, political leaders have been slow to offer comprehensive plans. Vice President Kamala Harris and former President Donald Trump have remained relatively silent on the issue. The Biden administration has proposed a $3 trillion deficit reduction plan, primarily through increased taxes on high earners and corporations. On the other hand, Republicans argue that Democratic policies are exacerbating the debt and propose spending cuts as a remedy.
In the midst of this fiscal turmoil, some are looking to Bitcoin as a potential solution. At a recent Bitcoin conference in Nashville, former President Donald Trump announced plans to transfer the $15 billion worth of Bitcoin seized by the U.S. government to the Treasury Department. Trump also advocated for Bitcoin mining in the U.S., warning that if they fail to do so, China will take the lead.
Furthermore, Senator Lummis has proposed legislation to establish a strategic Bitcoin reserve, with the aim of reducing the national debt by purchasing 1 million BTC over a five-year period. Lummis argues that adding Bitcoin to the reserve would strengthen the U.S. dollar and help mitigate inflation. Currently, the U.S. maintains strategic reserves in assets like gold and petroleum, and incorporating Bitcoin would provide a digital asset that secures the nation’s financial leadership for years to come. The proposed Bitcoin reserve would hold the cryptocurrency for 20 years, using it solely to pay down the national debt.
Presidential candidate RFK Jr. has also put forth an ambitious plan. He intends to sign an executive order directing the U.S. Treasury to purchase 550 BTC daily until the reserve reaches four million Bitcoins. This plan aims to position the U.S. in a dominant financial role.