How the US finances its religion
Last month, the U.S. national debt surpassed the $40 trillion mark for the first time, reaching approximately $40.18 trillion at the beginning of this month, setting a record for the largest government debt in history. Despite this increase, the government continued paying its employees' salaries, and investor confidence in its bonds remained strong, as they are still being purchased consistently. The accumulation of American debt leads to higher interest payments and narrows the government's financial options, with expected interest payments reaching $1 trillion in 2026 and $2.1 trillion in 2036, impacting spending on programs and services. This buildup is attributed to several crises, including the global financial crisis, the COVID-19 pandemic, wars, and spending on stimulus programs, all while the gap between expenditures and revenues persists. Although debt is divided between domestic and foreignholders, foreign investors own no more than 29% of it, with Japan and China being the most prominent owners. Market confidence and the continued ability to borrow are crucial for debt sustainability, as loss of trust could lead to rising interest rates and higher borrowing costs, threatening both the U.S. and global economies. If the debt ceiling is not raised or if fiscal deficits are not controlled, the government risks being unable to meet its obligations, which could lead to global financial disruptions.
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