Authored by Robert Aro via The Mises Institute,

A little over two weeks ago, on April 7th, the U.S. national debt crossed$39 trillion. Since then, another$150 billionhas already been added to the ledger. While major news outlets missed the milestone, every trillion is worthy of mention.

House Budget Chairman Jodey Arrington (R-Texas) put the figure inperspective:

America is now $39,000,000,000,000 in debt—yes, $39 trillion.It took roughly 200 years to accumulate the first $1 trillion. Now we add that in a matter of months… Compounding the problem, we now spend more than $1 trillion a year just on interest to service our debt—more than the entire defense budget.

Almost three years ago, I wrote about the U.S. debt crossing the$32 trillionand$33 trillionmarks. If there’s one economic projection to stand by, it’s this: within the next several months, the $40 trillion debt level will be breached.

Looking back at the last 200 years, or even the last three, it becomes clear that debt growth is not linear; the curve is moving up exponentially.

While the future is always uncertain, the trajectory is unmistakable.

One reason stands above the rest: the interest on the debt itself.

For context, net interest outlays were equivalent to 22.1% of total revenues throughQ1 of FY 2026. Even if the national debt were frozen at $39 trillion today, the interest payments alone would be staggering. With the 10-year Treasury yield hovering between4% and 4.5%at the time of writing, and annual interest surpassing $1 trillion, solvency should be a real concern.

Naturally, one might argue that with a Federal Reserve, solvency is not a concern. However, that’s the crux of the matter. America technically won’t become insolvent thanks to the Fed’s ability to create money (literally) out of thin air, and so, the final outcome is certain. Expanding debt and the accompanying expansion of the money supply are features of the system. History shows that monetary inflation, currency debasement, and the eventualcrack-up boomare the recurring final outcomes.

Source: ZeroHedge News