US debt hits $38T threshold for first time

The total US government debt surpassed $38 trillion on Wednesday, hitting an all-time high, reflecting the accelerating debt accumulation that continues amid the ongoing federal government shutdown, according to the latest Treasury Department report documenting the nation's daily financial situation.

This represents the fastest pace of debt accumulation outside of the COVID-19 pandemic, after the total US debt reached $37 trillion in August of this year. It also means that US debt is accumulating at a rate of approximately $4.8 million per minute and $6.9 billion per day.

To put this in perspective, $38 trillion is roughly equivalent to the combined value of the economies of China, Germany, Japan, India, and the UK.

Kent Smetters, who served at the Treasury Department under President George W. Bush, told the Associated Press that the growing debt burden could ultimately lead to higher inflation, thus weakening people's purchasing power.

“Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are failing to fulfill their basic fiscal duties,” Michael Peterson, Chairman and CEO of the Peter G. Peterson Foundation, said in a statement.