US Federal Debt Hits Record High Amid Devaluation Trade Narrative

The US federal debt has reached a new high of $39.7 trillion, according to data from the U.S. Department of the Treasury.

This represents a growth rate of about $7 billion per day and exceeds 120% of the country's GDP, leaving little fiscal buffer, as warned by Apollo Chief Economist Torsten Slok in a previous blog post.

The rapid increase in federal debt is supporting the so-called 'devaluation trade' narrative, where investors bet on the devaluation of fiat currencies and instead buy limited-supply assets such as Bitcoin and gold.