America’s total national debt has reached new heights, exceeding $31 trillion, according to a report released by the US Treasury this week.

If you find it hard to stick around, it basically boils down to more than $93,000 in debt per person in the country, according to the Peter J. Peterson Foundation.

And with interest rates soaring over the past few months – the Fed funds rate is currently between 3% and 3.35% – the national debt will grow at a rate that makes it hard to ignore.

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The past few years have been expensive

A deficit is what happens when the government spends more money than it earns in taxes – and in the last two years It was expensive.

Several big, exorbitant bills have been approved since the pandemic began, including the $1.9 trillion US bailout bill and $750 billion in student debt relief, all of which increase the deficit, which then adds to the debt.

Although Inflation reduction lawIt is expected to cut the deficit by $240 billion, which was passed in August, and the policies and programs introduced by the Biden administration are expected to add trillions more over the next decade.

The Committee on Responsible Federal Budget estimates that $4.8 trillion will be added to the deficit by 2031.

“Excessive borrowing will keep inflationary pressures going, push the national debt to a new record high as soon as 2030, and triple federal interest payments over the next decade — or even sooner if interest rates rise faster or more than expected,” he says. CRFB.

Read more: Do you fall into the lower, middle, or upper class in America? How does your income accumulate?

The story continues

A lot of borrowing happened in the last couple of years while interest rates were historically low, but now they aren’t anymore, with Inflation rising at the fastest pace Within decades, the cost of that debt will likely balloon.

Currently, just over $965 million is spent daily in interest on the national debt. The Peterson Foundation estimates that will triple over the next decade, making it the fastest-growing component of the federal budget.

So who owns America’s national debt?

There are different types of national debt. Think of it like having a credit card, a mortgage, and paying off a car—they’re all debt, but they’re different. The US Treasury manages the national debt, which is divided between what one government agency owes to another and debt held by the public.

External debt represents about $6.5 trillion in debt.

The bulk of the debt is publicly owned. Now, that’s about $24 trillion.

Most of this debt is held by foreign governments as well as banks, private investors, state and local governments, and the Federal Reserve, and it is held in Treasury bills, bonds, and bonds.

Foreign governments and private investors are among the largest holders of public debt, holding about $7.7 trillion. Domestically, the Federal Reserve holds the largest share of public debt, at about 40%.

warning sign

finally, high interest rates It will only worsen the national debt, making it difficult for the government to respond to the slowing economy.

Michael A. said: Peterson, CEO of the Peter J. Peterson Foundation, said in a statement: “For too long, policy makers have assumed perpetually low interest rates, and we are now seeing in real time how risky that assumption is.”

“With our debt exceeding $31 trillion, it’s time to take action.”

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