United States federal debt surpasses $40 trillion

The United States federal debt has surpassed $40 trillion, a significant milestone driven by decades of spending exceeding tax revenue. The debt is categorized into gross debt, which includes obligations to internal government funds, and debt held by the public, which represents money borrowed from external investors, banks, and institutions.

Financial expert Jim Rickards suggests that Washington may not intend to repay the full debt but will instead use inflation to erode its real value. He notes that 10-year Treasury bond yields have reached 5.34%, the highest level since 2002. Rickards argues that gold and other real assets serve as effective protections against such inflationary trends, citing Russia’s use of gold reserves as a successful example of maintaining value during Western sanctions.

Concerns persist regarding the pace of debt growth and the rising cost of interest payments, which currently total approximately $1 trillion annually. While the U.S. Treasury tracks these obligations, the widening gap between government spending and revenue remains a central economic challenge.