Trump Must Act On $39 Trillion U.S. Debt, Global Risks Mount
With US national debt now hitting almost $39 trillion, Trump needs to focus on the potential fallout of the world’s largest economy’s debt triggering a global financial crisis, warns the CEO of one of the world’s largest independent financial advisory organisations.
Nigel Green of deVere Group’s comments come as fresh Treasury data show US government liabilities surging past $38.4 trillion in early January, rising by more than $2.2 trillion in the past year alone and on track to breach $39 trillion within months.
The US has added more than $10 trillion to its debt in just five years, underscoring the accelerating pace of borrowing.
He says: “This month alone, Trump and his administration have been focused on Venezuela, legal action against the Chair of the Federal Reserve, acquiring Greenland, tariffs on European allies, and now suing the CEO of JPMorgan Chase.
“Behind the scenes, the US national debt continues to soar at a pace that should dominate the economic agenda.”
The deVere CEO warns that the scale and speed of borrowing now represent a systemic global risk rather than a domestic political talking point.
He says: “Debt accumulation has become routine in Washington, but markets will not treat it as routine forever.
“The US is borrowing trillions every year, while interest costs alone are approaching levels that exceed defence and Medicare spending. “This is a structural vulnerability that investors, policymakers, and global partners cannot, and should not, ignore.”
US fiscal data show the federal government ran a roughly $1.8 trillion budget deficit in fiscal 2025, with interest payments nearing or surpassing $1 trillion for the first time in history. Net interest costs have almost tripled over the past five years, driven by higher interest rates and the expanding stock of debt.
Nigel Green says: “Interest is now one of the largest items in the federal budget. Paying creditors is consuming resources that could otherwise fund productivity, innovation, or tax relief.
“This is the classic debt spiral dynamic that every emerging market fears, yet it’s now visible in the world’s largest economy.”
He adds that the US enjoys unparalleled financial privilege because the dollar is the global reserve currency, but that privilege should not be mistaken for immunity.
“Global investors buy Treasuries because they trust the US system. If that trust weakens, yields will rise, the dollar could become more volatile, and global borrowing costs will climb. Every mortgage holder, corporate borrower, and emerging market government would feel the shock.”
He argues that the US debt trajectory has direct implications for inflation, monetary policy, and global asset markets.
“When debt becomes politically untouchable, governments lean on central banks to keep rates lower and inflate away liabilities.
“This erodes purchasing power and distorts capital allocation. Investors should understand that high debt changes the entire macro regime.”
The deVere chief executive stresses that debt is rising at a time when the US faces mounting demographic and geopolitical pressures. Social Security and healthcare spending are increasing as the population ages, while defence outlays and industrial policy ambitions continue to expand.
He continues: “The fiscal reality is brutal. Mandatory spending is rising automatically, discretionary spending is politically sensitive, and tax revenues are insufficient to close the gap.
“Without credible reform, borrowing remains the default option.” He cautions that markets are often complacent, until they are not.
Nigel Green says: “Debt crises rarely announce themselves years in advance. They emerge when confidence shifts, when buyers demand higher compensation, or when political dysfunction undermines fiscal credibility.
“US debt is the backbone of global reserves, banking collateral, and risk pricing. If that backbone weakens, the consequences will cascade through equities, currencies, commodities, and credit markets worldwide.”
Despite the risks, the deVere CEO emphasizes that the situation is not yet a crisis but a slow-moving macro event that demands leadership.
He says, “The US still has time to stabilize its fiscal path. It requires confronting spending growth, tax policy, entitlement reform, and the cost of servicing debt.
“Ignoring the issue while pursuing headline-grabbing geopolitical projects or pet peeves is a strategic error.” He concludes: “Debt at this scale reshapes geopolitics and financial markets. The US has a responsibility not just to its citizens but to the global system that depends on its stability.
“The longer Washington postpones serious fiscal reform, the higher the eventual cost for everyone.” U.S. Withdrawal From WHO, Loss for Everyone – Tedros
