The US national debt exceeds $33 trillion, accumulating over $14 billion daily, surpassing major crypto market caps, highlighting economic instability.
Key Takeaways
- The US national debt is ballooning, accumulating over $14 billion daily, surpassing the market cap of substantial crypto assets.
- US has plans to issue $2 trillion in bonds over the next 6 months, propelling rates and refinancing debt at doubled rates.
- Global debt, notably driven by the US and Japan, has soared by $10 trillion in 2023’s first half, reaching a staggering $307 trillion.
- Despite such monumental debt figures, the crypto market seems minuscule, with a total capitalization of just over a trillion dollars.
The United States finds itself amidst a daunting financial scenario as the national debt reaches uncharted territories, exceeding $33 trillion last week.
With a daily increase surpassing $14 billion, the amount being accrued is monumental, outstripping the market value of leading cryptocurrencies.
BREAKING: Total US debt has jumped by $100 BILLION since it crossed $33 trillion exactly one week ago.
That's $14.3 billion PER DAY being added to US debt over the last week.
Add in ~$3 billion per day of interest expense and that's over $17 billion per day.
Meanwhile, deficit… pic.twitter.com/W525OwvMa8
— The Kobeissi Letter (@KobeissiLetter) September 25, 2023
Alarming Debt
The alarming rise in debt equates to a daily accumulation of over $14.3 billion in the past week alone, a figure overshadowing the total of Ethereum staked on Lido, approximated at $13.8 billion.
When considering the daily interest expenses amounting to around $3 billion, the total daily accrual surpasses $17 billion, outpacing the combined market capitalization of significant crypto assets like Cardano and Solana.
The robust issuance of $2 trillion in bonds over the upcoming 6 months is poised to push rates upwards, and the debt is being refinanced at rates that have observed a twofold increase.
The predicament is exacerbated by the unbounded debt ceiling, maintained until January 2025, making these colossal figures a normative future scenario, with projections suggesting a staggering $45 trillion debt in the next four years.
However, this issue is not a solitary one, with nations globally facing a comparable crisis. Central banks globally have been prolifically printing money, contributing to a global debt soaring to a colossal $307 trillion.
Predominantly propelled by the economic activities of the United States and Japan, the global debt has seen an increment of $10 trillion in the first half of 2023 alone.
In contrast, the crypto markets, with a total capitalization barely crossing a trillion dollars, appear insignificant against the colossal debt figures. The current bearish sentiment within the crypto market has resulted in only a minor uptick in market cap, totaling $1.09 trillion.
To Sum it All Up….
The continual ascent in the US national debt, marked by daily increments surpassing substantial crypto market capitalizations, is a stark indicator of looming economic instability.
The proactive issuance of bonds and the refinancing of debt at elevated rates underscore an attempt to navigate through this fiscal quagmire.
Global economies, driven by the US and Japan, are immersed in a similar debt spiral, amplifying the global financial tension.
While these figures paint a grim economic tableau, the crypto market, with its relatively modest total capitalization, emerges as a potential alternative financial landscape.
The disproportionate scale between global debt and the crypto market capitalization underscores the potential and necessity of decentralized financial ecosystems in mitigating economic risks and offering diversified financial avenues in the contemporary, debt-ridden global economy.
