World Blog by humble servant.Key Findings National Debt Surge U.S. national debt reached $36.56 trillion by March 6, 2025, up from $34 trillion in January 2024 and $18 trillion a decade prior.

Key Findings

National Debt Surge

U.S. national debt reached $36.56 trillion by March 6, 2025, up from $34 trillion in January 2024 and $18 trillion a decade prior.

Debt-to-GDP ratio hovers at 122%, with public debt at $29 trillion and intragovernmental holdings at $7.4 trillion.

The climb reflects deficits and interest, not just new obligations.

Interest Payment Explosion

Annual interest soared to $1.16 trillion gross ($882 billion net) in 2024, a 39% leap from $659 billion in 2023, tripling 2020’s $352 billion.

Rising rates (3.32% in 2024 vs. 2.97% in 2023) fuel this, eating 16% of federal spending—more than defense ($800 billion).

Interest now competes with Medicare ($1.05 trillion), siphoning funds without return.

Deficit Growth

The 2024 deficit hit $1.833 trillion, up 8% from $1.695 trillion in 2023, ranking third-highest ever after 2020 ($3.132 trillion) and 2021 ($2.772 trillion).

CBO forecasts deficits swelling to $2.8 trillion by 2034, pushing debt-to-GDP to 122% without action.

Adjusted 2023 data doubled from $1 trillion to $2 trillion, exposing deep imbalance.

Tax Revenue vs. Spending Imbalance

Tax receipts in 2023 totaled $4.4 trillion (16.5% of GDP), down from $4.9 trillion (19.3% of GDP) in 2022, despite 60% growth over 10 years.

Spending reached $6.75 trillion (23.9% of GDP) in 2024, up 98% in a decade, far outstripping revenue.

Drivers: Social Security ($1.52 trillion, +7%), Medicare ($1.05 trillion, +4%), defense ($826 billion, +6%).

Global Context and Warning Signs

U.S. debt-to-GDP (122%) ranks fourth globally, trailing Japan (243%), Greece, and Italy, signaling exposure.

Fitch’s 2023 downgrade to AA+ and Moody’s warnings flag waning trust.

Penn Wharton projects fiscal collapse by the 2050s, with only 20 years to act.

The Case Against Federal Taxation

Taxation’s Futility: $4.4 trillion collected in 2023 can’t halt deficits, and $1 trillion in interest swallows a third of it. Taxes prop up debt, not progress.

Historical Evidence: Before 1913, the U.S. thrived without income tax, using tariffs ($300 million in 1900, ~$10 billion today adjusted) and excise taxes. Spending was 2% of GDP vs. 23.9% now—scope, not revenue, is the issue.

Non-Tax Funding: Japan’s 243% debt-to-GDP with 2.5% inflation (2024) suggests monetization works. Issuing $600 billion annually (2-3% of GDP) could replace taxes, if trust endures.

Economic Lift: Ditching income tax ($2.2 trillion) could boost GDP 10-15% (Tax Foundation), outpacing debt’s 0.1% GDP drag per point (CBO).

Debt as Currency: Bonds ($3 trillion in bank reserves) already mimic money. Direct issuance or equity swaps could fund defense ($800 billion) without tax crutches.

Implications

Current Path: Debt and interest stifle growth, squeeze budgets, and court crisis—dollar hegemony hangs by a thread if faith falters.

Tax-Free Vision: Ending taxes could unburden citizens, fund essentials via currency, and demand leaner government, though it hinges on monetary confidence.

Time Runs Short: Interest outpaces defense, deficits defy taxes—collapse looms without bold moves.

Urgent Recommendations

Traditional Fix: Cap spending, overhaul entitlements, extend debt terms, and streamline taxes to halt debt-to-GDP growth in 10 years.

Tax Elimination Plan: Phase out federal taxes in 5 years, issue $900 billion annually (3% GDP), convert $5 trillion debt to private equity, and slash spending to $4 trillion (15% GDP).

Next Steps: Audit spending ($1 trillion interest vs. $826 billion defense), test tariff-only funding, and launch a fiscal reset task force.

Conclusion

The numbers speak: $36 trillion debt, $1 trillion interest, $1.8 trillion deficits despite $4.4 trillion in taxes. The system bleeds inefficiency—taxes fuel failure, not solutions. Whether we mend it or end it, delay is not an option. Act now, or lose all.

Date: March 31, 2025

Prepared by: The Humble Servant