US Debt Reaches $39.7 Trillion: A Warning from Global Debt Crises

The United States is facing a perilous path due to its growing debt crisis. In July 2026, the U.S. national debt reached $39.7 trillion, exceeding 100 percent of GDP for the first time since World War II.

This debt is not just a matter of numbers; it's also about the consequences. The rising debt has led to high global demand for U.S. bonds, keeping their interest rates low, known as 'exorbitant privilege.'

However, recent episodes suggest this benefit is not as ironclad as it seemed. In Senegal, a youth-led pro-democracy coalition discovered $13 billion worth of debt hidden by the previous government, placing debt at 132 percent of GDP.

Similar incidents could threaten the American economy. In Indonesia, a group of economists confronted the government over seemingly manipulated GDP growth statistics, which would be a severe blow to its institutional integrity.