SkyBridge Capital founder Anthony Scaramucci has raised concerns over the potential financial strain of the U.S. national debt, which currently stands at $40 trillion. He warned that if interest rates rise to 6%, the annual interest bill could reach $2.4 trillion, surpassing total Social Security disbursements. "This isn’t apocalyptic. It’s just math," he stated on X, emphasizing the dire financial implications.
Scaramucci clarified on The Don Lemon Show that he wasn’t suggesting all federal debt would immediately carry a 6% rate. However, he emphasized that higher borrowing costs could make the debt increasingly unsustainable. He proposed returning to tax rates from former President Bill Clinton’s administration to reduce projected deficit spending by $10 trillion to $12 trillion over the next decade. "But there’s no Republican that’s going to do that. Donald Trump’s not going to do that," he added, noting that Trump’s presidency would contribute significantly to the national debt.
Last month, Scaramucci had warned that the U.S. national debt could reach $56 trillion by 2036, with annual interest costs projected to hit $2.1 trillion. He blamed both parties for decades of borrowing, stating, "For twenty-five years, both parties have sold us something for nothing, and the national debt is the receipt." Other economists, like Michael A. Peterson, have also expressed concerns, warning that the debt is "stealing from our next generation."
Market strategist Ryan Detrick compared the $40 trillion debt to a stack of $1,000 bills 72 times the height of Mount Everest, urging investors to consider rising household wealth alongside the growing debt. Economist Peter Schiff had previously warned that the debt could complicate the Federal Reserve’s efforts to control inflation and manage borrowing costs.