US national debt surpasses $37 trillion for 1st time
The US national debt has crossed $37 trillion for the first time ever, and it's still climbing.
That's now more than the entire US economy makes in a year.
Annual interest payments alone are over $1.2 trillion, adding pressure on the budget.
Debt-to-GDP ratio is at 124%
Right now, the debt-to-GDP ratio is at 124% in 2025 and is projected to continue rising after reaching 125.4% by the end of 2025—higher than almost any time outside of war or pandemic.
As J.P. Morgan's David Kelly points out, if the government keeps spending more than the economy grows, this number will just keep rising unless big changes happen.
Investors advised to look beyond US assets
Public debt is well above the country's GDP and way above what's normal.
Even without a recession, deficits could get worse, making borrowing more expensive and putting pressure on future budgets.
Investors are already being told to look beyond US assets—Kelly suggests diversifying with international or alternative investments as the long-term outlook gets trickier.