US national debt crosses $30 trillion to reach all-time high

The United States’ total public outstanding has crossed the $30 trillion mark for the first time. Treasury Department data published on Tuesday shows that the national debt surged by about $7 trillion since the end of 2019. This could be seen as a result of the Joe Biden government’s accelerated borrowing during the COVID-19 pandemic. 

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The data, released months before the mid term elections, shows $23.487 trillion debt held by the public and $6.525 trillion in intra-government debt such as federal trust funds and other accounts. The governement owes close to $8 trillion to foreign and international investors. 

“That means American taxpayers will be paying for the retirement of the people in China and Japan, who are our creditors,” David Kelly, chief global strategist at JPMorgan Asset Management said, as per CNN reports. 

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However, a major chunk of the deby is owed by the government to itself. This includes the money held in Social Security and other government trust funds. The intragovernmental holdings total more than $6 trillion.

“It doesn’t mean a short-term crisis, but it does mean we are going to be poorer in the long term,” Kelly said. 

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According to Peter G. Peterson Foundation, an American financial-services company, internet costs alone are projected to surpass $5 trillion over the next 10 years and will amount to nearly half of all federal revenue by 2051. 

Total debt outstanding stood at $9.2 trillion in December 2007 just as the Great Recession was beginning, according to Treasury data.