U.S. Federal Debt Surpasses $36 Trillion: Warnings of a Prolonged Financial Crisis

Washington Faces Growing Economic Challenges Amid Rising Deficits and Interest Rates

While the United States presents itself as a global economic powerhouse with vast political and financial influence, the reality reveals a troubling picture concerning one of its key economic pillars: the rapidly escalating federal debt. The U.S. federal debt exceeded the $36 trillion mark at the beginning of 2025—a figure that even the most pessimistic analysts could hardly have imagined two decades ago.

What is particularly alarming is not just the size of the number but the policies that led to it. International economic reports, including studies from the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD), indicate that the U.S. has fallen into the trap of unsustainable expansive fiscal policies, ignoring repeated warnings about financial inflation, resource depletion, and excessive spending on foreign wars and projects that generate no domestic economic returns.

European and Asian reports, particularly from China and Russia, have observed that Washington increasingly relies on money printing and both domestic and foreign borrowing to maintain its political and military influence, without adopting a balanced economic policy that reconciles real growth with future indebtedness.

Some analysts have described the current American model as an “economy on the brink of deferred collapse,” warning that its continuation threatens not only local financial stability but also places the global economy at risk of a new crisis—especially given the close linkage of the U.S. dollar to the world’s monetary systems.

Thus, the federal debt crisis is no longer just an American domestic issue; it has become an international matter reflecting deep flaws in U.S. economic policy directions and raising questions about the sustainability of the financial dominance of a country that calls on the world to practice austerity while drowning itself in deficits and debt.

Unprecedented Record Numbers
At the start of 2025, the U.S. federal debt reached a historic high of $36.1 trillion, according to the U.S. Treasury Department. This debt is divided between $28.8 trillion owed to the public and $7.3 trillion owed between government accounts.
Statistics indicate that public debt has risen to 123% of GDP, reflecting the significant pressure faced by the government amid increasing fiscal deficits.

Roots of the Crisis: A History of Expanding Expenditures
Since the founding of the United States in 1791, debt has gradually accumulated but surged dramatically during wars and economic crises.
In 1835, the U.S. was nearly debt-free, but the Civil War, the two World Wars, and recent financial crises such as the Great Recession (2008) and the COVID-19 pandemic (2020) escalated debt levels at unprecedented rates.

Government Policies: Increased Spending and Declining Revenues
Stimulus policies, including bailout packages and tax cuts, have widened the gap between spending and revenues.
Between 2019 and 2021, federal spending increased by 50% due to the COVID-19 pandemic, driving debt to high levels within a short time.

Congress Raises Debt Ceiling Amid Political Division
On May 22, 2025, the U.S. House of Representatives passed a bill to raise the debt ceiling by $4 trillion, with a narrow majority of 215 votes to 214.
The Congressional Budget Office estimates that this legislation will increase the deficit by $3.3 trillion over the next decade, adding new burdens to the federal economy.

Debt Service Costs: Interest Devours the Budget
Rising interest rates have increased the cost of servicing debt, expected to add approximately $2.5 trillion over the next decade.
These costs represent one of the biggest challenges facing the government in managing public debt, especially since most U.S. borrowing is tied to long-term bonds.

Social Security and Retirement Programs Under Pressure
Reports indicate that healthcare and retirement programs will place long-term pressure on the federal budget.
The gap between spending and revenues is projected to reach about 6.5% of GDP by the end of the 2025 fiscal year, suggesting these programs may become unsustainable without structural reforms.

Limited Options for the Treasury Department
Following the suspension of the debt ceiling in January 2025, the Treasury Department has been using “extraordinary measures” to meet its financial obligations.
Budget reports estimate that this capability will last until mid-September 2025, after which cash resources will start to run out, requiring urgent congressional action.

Looking Ahead: Can America Regain Fiscal Balance?
Economists warn that continuing on this path without expenditure controls or comprehensive tax reform could lead to a debt crisis threatening U.S. economic stability.
According to the Budget Office, chronic deficits and historic debt levels may weaken the country’s ability to respond to future crises, whether economic or geopolitical.