A major problem': The US is now a record $31 trillion in debt

11.14.22 - National Debt 'a major problem'

Gold last traded at $1,770 an ounce. Silver at $21.98 an ounce.

'A major problem': The US is now a record $31 trillion in debt, made worse by rising interest rates - and this is who holds the IOUs-

Yahoo! Finance--The gross national debt in America has hit new heights, surpassing $31 trillion, according to a recent U.S. treasury report.

If you find that hard to wrap your head around, it basically boils down to more than $93,000 of debt for every person in the country, according to the Peter G. Peterson Foundation.

And with the dramatic rise in interest rates over the past few months - the Fed funds rate is currently between 3.7% and 4% - the national debt will be growing at a rate that makes it even harder to ignore.

"Interest rates are a major problem," says Phillip Braun, clinical professor of finance at North Western University's Kellogg School of Management.

"The Treasury finances the debt with a lot of short-term borrowing ... It'll push other budgetary items out."

The last couple of years have been expensive

A deficit is what happens when the government spends more money in a fiscal year than it brings in through taxes - and the last couple of years have been expensive.

Several large bills with hefty price tags have been approved since the start of the pandemic, including the American Rescue Plan Act, which cost $1.9 trillion, and $750 billion for student debt relief, all adding to the deficit, which then adds to the debt.