US National Debt Hits Record $35 Trillion, Can A Bitcoin Reserve Strategy Help?

This week, the US national debt surpassed $35 trillion for the first time. In addition, America has added about $12 trillion in federal debt since 2020.

To put that in perspective, the US has added an average of $280 billion of federal debt each month since January 2020.

The country now has about $105,000 in federal debt for every person living in the United States, noted Kobeissi’s July 30 letter before asking, “How can this end well?”

The national debt soars

Leading presidential candidates Kamala Harris and Donald Trump have said little about the nation’s huge deficits on the campaign trail, suggesting that debt will continue to rise over the next four years.

According to usdebtclock.org, the federal debt is projected to reach $46 trillion by 2028. The Kobeissi Letter commented on the crisis:

“Every year spending cuts are called for and they never happen. The debt ceiling crisis never really ended, it was simply swept under the rug.”

BREAKING: The total US federal debt has officially reached $35 trillion for the first time in history.

As of 2020, the US has now added ~$12 trillion in federal debt.

In other words, the US has added an average of ~$280 billion in federal debt EVERY MONTH since January 2020.

This… pic.twitter.com/YRQjNkQopc

— Kobeissi Letter (@KobeissiLetter) July 29, 2024

According to the Congressional Budget Office, the national debt is on track to top $56 trillion by 2034 as rising spending and interest outpace tax revenue.

Social Security and Medicare spending, along with persistently high interest rates, have made it difficult to reduce America’s debt mountain.

Michael Peterson, executive director of the Peter G. Peterson Foundation, which promotes fiscal restraint, told the New York Times, “We can’t keep pretending this isn’t a problem.”

“It’s less than 100 days until the election and we’re projected to add another trillion dollars in debt even in that short period.”

Bitcoin is the answer…or is it?

There has been much talk of a strategic Bitcoin reserve to support the US dollar with independent presidential candidate Robert F. Kennedy Jr. and Senator Cynthia Lummis proposing such systems recently.

On July 30, the Wyoming senator said:

“A strategic Bitcoin reserve could stop this runaway train and help pay off the national debt for our future generations.”

Today, the national debt has surpassed a staggering $35 trillion.

A strategic Bitcoin reserve could stop this runaway train and help pay off the national debt for our future generations.

— Senator Cynthia Lummis (@SenLummis) July 30, 2024

Bitcoin adoption solutions company JAN3 noted that the debt figure is 1.6 million times the size of the total supply of Bitcoin.

“The end of fiat is imminent,” he stated before adding, “a strategic Bitcoin reserve is needed more and more with each passing moment.”

However, using BTC to reduce national debts would likely involve liquidating the asset, which the US government has already been doing this week. As we can see, moving small amounts of the asset can cause big waves for the crypto markets.

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