America's public debt exceeds 37.43 trillion USD, and interest payments are "eroding" the budget.

As of September 2025, the total public debt of America has surpassed 37.43 trillion USD - a historic figure. Notably, nearly 1/4 of every tax dollar collected by the government is currently being used just to pay interest on the debt.

According to data from the U.S. Department of the Treasury and the Joint Economic Committee, national debt has increased by an additional $2.09 trillion in just one year. Specifically, interest costs for the fiscal year 2025 have exceeded $478 billion, an increase of 17% compared to the previous year.

This huge expenditure is equivalent to about 23 cents for every 1 USD that the American IRS ( collects, reflecting a strong increase in the context of global interest rates returning to normal levels after many years of quantitative easing.

Tariffs: "Large numbers, small impact"

In recent years, the American government has collected a record amount of revenue from tariffs, especially after imposing a series of new import taxes under President Donald Trump.

It is expected that these revenues could help the treasury increase by 4 trillion USD over a decade, contributing to reducing the budget deficit. However, compared to the rate of increase in interest expenses, this tariff is merely like "a drop in the bucket."

The International Monetary Fund )IMF( also warns that the scale of increased revenue from tariffs remains "very difficult to predict." Eliant Capital cites:

"Despite the revenue from tariffs, the budget deficit in July still reached 291 billion USD. America spent 630 billion USD but only collected 338 billion USD – meaning for every 1 USD spent, 46 cents must be borrowed."

"Nothing can stop this train"

Macro expert Lyn Alden popularized the concept "nothing stops this train" )nothing can stop this train(, referring to the public debt situation of America.

According to Alden, prolonged budget deficits and continuous spending make substantial fiscal reform nearly impossible. She emphasized:

"The current structure causes public debt to rise beyond control, with almost no way to stop it."

The Peterson Foundation stated that interest payments have now become the third largest expenditure category for the federal government, following Social Security and Medicare. The proportion of interest payments in total budget revenue is expected to rise to 18.4% by the end of the year – the highest level since the early 1990s.

In the context of interest costs increasingly "eroding" the budget, while traditional solutions such as raising tariffs or cutting spending are not effective enough, the discussion about "hard money" )hard money( is getting hotter.

Bitcoin and Gold: Safe Havens in the Financial Storm

Both gold and Bitcoin are witnessing a strong increase in demand as alternative safe-haven assets amid public debt pressure and inflation.

As of mid-September 2025, the price of gold has reached a new historical peak, surpassing 3,600 USD/ounce, an increase of more than 41% compared to the same period last year. Some analysts predict that the price of gold could rise to 3,800 USD/ounce before the end of the year, as concerns over global liquidity continue to increase.

Bitcoin – often referred to as "digital gold" – is trading around 115,000 – 118,000 USD, after bouncing back from the September low of nearly 108,000 USD. Despite its volatility, many experts, including Lyn Alden, believe that Bitcoin could reach at least 150,000 USD in this cycle.

As fiscal pressure increases, both gold and Bitcoin are seen as important value preservation tools in the investment portfolio, amid the steep decline of America's public debt.

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