Trump's Debt Policy: U.S. Faces Rising Interest Rates and Debt Burden Crisis

The U.S. national debt reached a record high of $39.5 trillion in June, a 37% increase from pre-pandemic levels. This translates to $113,000 per American, according to USAFacts. Tech entrepreneur Jason Calacanis labeled Trump as the 'worst-spending president in history' for adding $2.2-$2.3 trillion to the debt in each of his first two years and during his second term. Trump had pledged to eliminate the debt during his 2016 campaign. The debt has more than doubled from $19 trillion to $39.5 trillion. The Trump administration has focused on cutting waste, fraud, and abuse in federal spending. However, the U.S. spent $1.2 trillion annually on interest payments alone, exceeding the world's largest defense budget. Experts warn that rising debt could lead to higher borrowing costs for consumers and businesses, potentially stagnating wages and increasing consumer prices. The dollar's reserve currency status provides temporary relief, but long-term sustainability remains uncertain. Calacanis argues that controlling the deficit should be the top priority in the next election. The U.S. debt crisis could further impact global supply chains and shipping markets, affecting indices like the Baltic Dry Index. The U.S. debt burden and rising interest rates may force a rethink of fiscal policies, potentially influencing global economic stability.