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US National Debt Surges to Record $32.7 Trillion

• The US National Debt has surged by $116 billion since August, bringing the total to $32.7 trillion
• The Heritage Foundation warns that America is at risk of reaching a point of no return due to its soaring debt and recent ratings downgrade
• Congressional action is needed to revamp the budget and avoid reaching a breaking point

US National Debt Surges

The US national debt has increased rapidly since the start of August, rising by $116 billion to reach a grand total of $32.7 trillion.

Heritage Foundation Warning

The conservative think tank Heritage Foundation issued a warning about the debt situation, citing its recent ratings downgrade from Fitch as a sign that it should not be ignored. They warned that if Congress does not get their “financial house in order”, the chances for insolvency and eventual default could increase.

Interest Payments on Debt

The interest payments alone on such high levels of debt costs approximately $1 trillion annually—more than the entire Defense budget—and spending keeps growing. This could lead to higher yields and even higher interest payments, creating a “veritable death spiral”.

Point of No Return

Heritage Foundation’s EJ Antoni said time is running out before America reaches the point of no return with its national debt crisis.

Congressional Action Needed

Antoni stresses that immediate action from Congress and the White House is needed in order to avoid this breaking point, as well as further defaults on U.S. debt and inflation roller coasters.