America is facing a slow but steady US debt crisis. Markets are calm for now, but investors are paying close attention. According to David Kelly, J.P. Morgan Asset Management’s chief global strategist, the U.S. national debt has surpassed $37.8 trillion, with interest payments exceeding $1.2 trillion annually. Short-term improvements from tariff revenues and temporary deficit relief offer little comfort. The long-term outlook remains deeply concerning.
The debt-to-GDP ratio is already 99.9%. If current trends continue, it could climb to 102.2% within a year. Nominal GDP growth is projected at 4.5%, but even moderate deficits above this level will push debt higher. Political choices, potential economic slowdowns, and uncertainty over tariffs could accelerate the problem. The risk is that the U.S. moves from “going broke slowly” to a much faster fiscal deterioration.
Recent Congressional Budget Office estimates show the FY2025…
