Overview
- The federal ledger now exceeds $38.5 trillion, pushing the debt-to-GDP ratio above 120% with output near $30 trillion.
- More than 70% of obligations are held by U.S. investors, with Japan, China and the U.K. leading foreign holdings.
- Annual interest payments have surpassed $1 trillion, overtaking defense outlays and sharpening focus on fiscal sustainability.
- Janet Yellen warned that rising indebtedness risks fiscal dominance, while President Trump urged rate cuts to 1% or below.
- Analysts report a steeper U.S. yield curve with short-term yields compressed and long-term rates rising, a setup that lifted gold about 60% last year and has some expecting bitcoin to benefit.