US National Debt Exceeds 33 Trillion Dollars

According to the US Department of the Treasury, the national debt has reached 33.044 trillion dollars. For the first time in history, the US national debt has surpassed the 33 trillion dollar milestone, reports RTVI.

The previous record was set on June 16, when the national debt had reached 32 trillion dollars. As noted by The New York Times, by the end of this decade, the US national debt could reach 50 trillion dollars, even considering the recently adopted bipartisan agreement regarding spending cuts.

The US national debt is the debt of the American federal government to its creditors. US authorities issue special debt securities, thereby financing budget expenditures (healthcare, infrastructure, defense, and other sectors) to cover these costs. Creditors can be citizens, foreign investors, states, or large funds.

Due to federal budget expenditures aimed at combating the coronavirus and its consequences, the American national debt has reached and exceeded 30 trillion dollars over the past year and a half. In October, it reached 31 trillion dollars.

At the end of 2021, US President Joe Biden signed a law that increased the national debt ceiling by 2.5 trillion dollars, raising it to 31.4 trillion dollars to prevent a potential default. In January 2023, the debt limit was reached, and the US Treasury lost the right to borrow additional funds to finance current expenditures. The head of the department, Janet Yellen, warned of the risk of default in early June.

In May, after several weeks of negotiations, President Joe Biden and House Speaker Kevin McCarthy reached a compromise solution regarding the national debt. They approved a document that suspends the federal government borrowing limit until January 1, 2025. The corresponding law was signed by Biden on June 3.