US Debt Crisis Continues to Grow – $680 Million Added Since June

The US national debt has surged by more than $680 billion in just three months, climbing from approximately $34.6 trillion on June 3rd to around $35.3 trillion by September 3rd.

This increase follows shortly after the national debt surpassed the $35 trillion threshold. Fitch Ratings has expressed concern about the growing debt and ongoing deficits.

Despite maintaining a stable “AA+” rating for the US, Fitch highlights the country’s high per capita income, its status as the world’s largest economy, and its vibrant business environment. However, the agency does not see an upgrade to a “AAA” rating due to persistent fiscal challenges.

Fitch points out that the US faces high fiscal deficits, a significant interest burden, and elevated government debt, all of which exceed the typical metrics for an “AA” rating. The report criticizes the government’s inability to address these fiscal issues effectively, including managing large deficits and increasing spending due to an aging population.

While the US benefits from the dollar’s status as the global reserve currency, Fitch warns that continued reliance on debt could undermine confidence in both the US and its currency. The risk of economic and confidence shocks increases with rising public debt.