What happened? The U.S. national debt hit about $37.88 trillion while gold and Bitcoin surged to record highs.
The U.S. national debt has jumped to about $37.88 trillion and grew roughly $6 billion a day over the last year. The government now pays higher interest costs (average marketable debt rate ~3.415%), totaling about $241.26 billion paid to trust funds in the past 12 months, and debt rose $2.2 trillion since October 2024. At the same time the dollar has weakened sharply, Bitcoin topped $125,000 and gold hit record highs as investors fled major currencies and a partial government shutdown delayed economic data.
Who does this affect? Taxpayers, savers, investors, pension funds and global markets feel the impact.
This affects everyday taxpayers and households who effectively shoulder a larger per-household debt burden (about $283,098), as well as savers, retirees and pension funds sensitive to inflation and interest rates. Investors in bonds and short-term Treasuries face rollover and refinancing risk with roughly 31% of marketable debt maturing within 12 months, while asset owners in gold, silver and crypto are seeing big gains. Federal employees and consumers also feel it now because the government shutdown has furloughed workers and delayed key economic reports that markets use to price risk.
Why does this matter? Rising debt, higher interest costs and a weak dollar are reshaping asset flows and increasing market risk and volatility.
Rising debt and interest costs plus a weaker dollar are pushing money into gold, silver, Bitcoin and stocks, creating unusual positive correlations that reduce traditional diversification and raise systemic risk. That flow can inflate asset prices and set the stage for a sharp correction — analysts warn Bitcoin may be in a blow-off top that could reverse quickly if support levels fail. Overall, higher borrowing costs and rollover risk could push Treasury yields up, crowd out fiscal spending, increase market volatility and widen wealth inequality as asset owners capture most of the gains.