US Federal Debt Tops $39 Trillion Amid Growing 'Devaluation Trade' Narrative

The US federal debt has reached a new high of $39.7 trillion, growing at a rate of about $7 billion per day, according to data from the U.S. Department of the Treasury.

This rapid increase in debt supports the 'devaluation trade' narrative, where investors bet on the devaluation of fiat currencies and instead buy limited-supply assets such as Bitcoin and gold.

Apollo Chief Economist Torsten Slok previously warned that the ratio of U.S. debt to GDP has exceeded 120%, leaving little fiscal buffer, making it difficult for the Federal Reserve to cut interest rates sharply if a recession hits.