Key highlights:
- U.S. national debt has exceeded $38.5 trillion, reaching the highest level in history and accelerating rapidly.
- Interest costs are rising so fast that debt servicing now rivals major federal spending programs.
- Analysts warn that shifting global demand for U.S. bonds could reshape financial markets in the years ahead.
U.S. national debt has climbed beyond $38.5 trillion, marking a new all-time high and intensifying concerns about the country’s long-term fiscal stability.
According to the U.S. Treasury, total federal debt stood at $38.375 trillion as of December 23 and continued rising through the holiday period, surpassing $38.528 trillion days later. The pace of accumulation has accelerated to levels rarely seen outside periods of crisis.
Current estimates indicate United States’ debt is increasing by more than:
- $272 million per hour
- $4.54 million per minute
- Over $75,000 per second
On a per-capita basis, total federal debt now exceeds $112,000 per person.
Rising debt and growing market warnings
Economist Peter Schiff issued a fresh warning as the figures crossed new records, arguing that the trajectory of U.S. borrowing is becoming increasingly difficult to sustain.
King dollar’s reign is coming to an end. Gold will take the throne as the primary central bank reserve asset. That means the U.S. dollar will crash against other fiat currencies, and America’s free ride on the global gravy train will end. Prepare for a historic economic collapse.
— Peter Schiff (@PeterSchiff) December 26, 2025
He pointed to a fundamental shift in global financial behavior, where central banks are gradually reducing reliance on U.S. Treasury bonds while increasing allocations to alternative reserve assets.
According to Schiff, once demand for U.S. debt weakens, interest rates must rise to attract buyers – increasing borrowing costs and accelerating the debt spiral.
Gold gains as confidence in the dollar weakens
Recent data supports that shift. Central banks increased gold purchases by 28% in the third quarter of 2025, acquiring roughly 220 tonnes of the metal. This extended a multi-year trend of net accumulation.
Gold prices have risen nearly 50% year-to-date, reaching new highs, while silver has also seen strong gains. Analysts view this as a signal that some institutions are hedging against long-term currency risk rather than short-term market volatility.
Debt costs now rival major federal spending
The cost of servicing U.S. debt has surged alongside higher interest rates. According to recent estimates, annual interest payments are approaching $1 trillion, placing them among the largest line items in the federal budget – alongside defense and healthcare.
This dynamic creates a feedback loop: higher interest rates increase debt servicing costs, which in turn require additional borrowing.
While the situation has raised alarm, historical data suggests the issue is more structural than immediate.
The U.S. debt-to-GDP ratio now sits near 123%, a level previously seen in other developed economies. Japan, for example, has sustained a significantly higher ratio for years without systemic collapse.
What makes the current moment different is the pace of change. Debt is rising faster, global capital flows are shifting, and technological transformation is reshaping productivity and fiscal dynamics.
Rather than signaling an imminent collapse, the current trend may mark a transition into a new financial phase – one defined by higher borrowing costs, greater reliance on domestic capital, and a gradual rebalancing of global monetary power.
Source:: U.S. National Debt Exceeds $38.5 Trillion as Peter Schiff Warns of a Historic Economic Collapse