This week saw the US national debt exceed $35 trillion for the first time in history.
It is noteworthy that the United States of America has added about $12 trillion to its federal debt since 2020.
To put this in context and illustrate the seriousness of the situation, the United States has added an average of $280 billion per month to its federal debt since January 2020.
Thus, each person's share of federal debt was about $105,000.
The two leading presidential candidates, Kamala Harris and Donald Trump, did not sufficiently address the country's huge deficit during their election campaigns, indicating that debt may continue to rise over the next four years.
According to usdebtclock.org, the federal debt is expected to reach $46 trillion by 2028.
According to the Congressional Budget Office, the national debt is expected to reach $56 trillion by 2034, as spending and interest expenses exceed tax revenues.
Spending on Social Security and Medicare, as well as persistently high interest rates, have been factors that have made it difficult to reduce US debt.
In this context, Michael Peterson, CEO of the Peter J. Peterson Foundation, which promotes financial restraint, told the New York Times:
The election is less than 100 days away, and we are expected to add another $1 trillion in debt in that short period.
Bitcoin as a potential solution:
Discussions are growing about adopting a Bitcoin reserve strategy to support the dollar, with both independent presidential candidate Robert F. Kennedy Jr. and Senator Cynthia Lummis recently proposing such systems. On July 30, the Wyoming senator stated:
A strategic Bitcoin reserve could stop this runaway train and help pay down the national debt for our future generations. Bitcoin adoption solutions company JAN3 noted that the debt figure is 1.6 million times the size of the total supply of Bitcoin, and added:
A strategic reserve of Bitcoin is needed more and more with every passing moment.
However, using Bitcoin to reduce the national debt would require liquidating assets, which the US government has already done this week.
This caused the market to shake and the price of Bitcoin to decline to its current levels of $67,000.
