US National Debt Soars by $677 Billion in Three Months, Raising Alarm

The US government has added a staggering $677 billion to its national debt in just three months, according to data from the Treasury Department. The debt has now reached $34.573 trillion, up from $33.896 trillion in December.

BlackRock CEO Warns of Urgent Situation

Larry Fink, CEO of BlackRock, the world’s largest asset management firm, has expressed deep concern about the mounting debt. In a letter to shareholders, Fink stated that the situation is “more urgent than I can ever remember.”

Reasons for Concern

Fink highlights several reasons for concern:

  • Rising Interest Rates: The interest rate on a 10-year Treasury bill has risen from under 1% to over 4% in the past three years. This increase could lead to an extra trillion dollars in interest payments over the next decade.
  • Foreign Investors: Around 30% of US Treasury securities are currently held by foreign governments or investors. This percentage may decline as more countries develop their own capital markets.
  • Comparison to Japan: Fink warns that the US could face a similar situation to Japan in the late 1990s and early 2000s, when high debt led to austerity and stagnation.


Fink believes that a debt crisis is not inevitable but requires action. He suggests that the US focus on pro-growth policies, including:

  • Fiscal Discipline: While difficult politically, raising taxes or cutting spending could help reduce debt.
  • Economic Growth: A sustained GDP growth rate of 3% over the next five years could keep the debt-to-GDP ratio manageable.
  • Infrastructure Investment:
    Investing in infrastructure, especially energy infrastructure, can stimulate economic growth.

Fink concludes by urging policymakers to address the debt issue urgently to avoid the potential consequences of inaction.