The U.S. Is Entering a Concerning Debt Spiral

Escalating government debt, unprecedented in peacetime, has pushed 10-year Treasury yields to levels unseen since 2007. The surge from $23 trillion in debt in 2019 to $33 trillion now has pressured bond prices, driving yields up. This fiscal year’s federal deficit exceeds $1.5 trillion, a 61% jump from last year. By 2025, rising yields and debt might make debt service costs surpass defense and, by 2026, Medicare spending. The U.S. is in a concerning debt spiral, risking either skyrocketing debt payments, increased inflation, or harsh austerity measures.