U.S. debt exceeds $39 trillion, raising concerns about long-term sustainability.

Huo Xing Finance reports that on July 5, the U.S. national debt rose to approximately $39 trillion, with public debt equivalent to the total U.S. GDP and annual interest payments reaching about $1 trillion—exceeding defense spending. The U.S. debt system traces its origins back to 1790, when Alexander Hamilton spearheaded a debt consolidation reform, under which the federal government assumed state wartime debts and pledged full repayment, thereby establishing the U.S. credit system and laying the foundation for the global status of the U.S. dollar and U.S. Treasuries. Today, U.S. Treasuries are regarded as one of the core assets of the global financial system, underpinning the U.S. dollar’s status as a reserve currency and widely held by central banks and financial institutions worldwide. However, as the debt continues to grow, concerns over its long-term sustainability are intensifying. According to the Penn Wharton Budget Model (PWBM), the fiscal system may face unsustainable risks when the debt-to-GDP ratio exceeds approximately 210%. The current U.S. ratio stands at around 100%, and the Congressional Budget Office projects it could rise to 175% by 2056. Analysts suggest that, under scenarios of rising healthcare expenditures and persistent fiscal deficits, this risk threshold may be reached sooner, placing the long-term stability of the debt structure under increasing scrutiny from markets and policymakers.