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U.S. Debt Surpasses $40 Trillion Amid Rising Costs · GNN Daily Breaking News

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  Speaker 1: In Washington, the U.S. national debt has surged past $ 40 trillion,
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  Speaker 1: a historic milestone that starkly contrasts with President Donald Trump's
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  Speaker 1: repeated pledges of fiscal restraint. Treasury data confirm that borrowing
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  Speaker 1: has accelerated at a pace unseen in modern history, driven
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  Speaker 1: by expansive spending programs, tax cuts, and rising interest costs.
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  Speaker 1: Trump campaigned on promises to rein in deficits, but during
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  Speaker 1: his administration debt levels doubled, fueled by sweeping tax legislation,
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  Speaker 1: expanded defense budgets, and pandemic relief measures. His aides argued
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  Speaker 1: that growth would offset borrowing, yet the numbers tell a
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  Speaker 1: different story. Interest payments alone now consume a record share
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  Speaker 1: of federal revenue, leaving policymakers with fewer options to manage
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  Speaker 1: the burden. The situation has been compounded by persistently high
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  Speaker 1: borrowing costs. Yields on 10-year Treasury bonds have climbed above 4.7%,
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  Speaker 1: the highest in more than a decade. Analysts say investors
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  Speaker 1: are demanding higher returns to compensate for fiscal risks, magnifying
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  Speaker 1: the cost of servicing existing debt. Rising yields ripple through
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  Speaker 1: the economy, pushing up interest rates on mortgages, car loans,
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  Speaker 1: and business credit. Global markets are watching closely. The US
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  Speaker 1: dollar remains the world's reserve currency, but persistent deficits raise
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  Speaker 1: questions about how long investors will tolerate mounting debt. Some
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  Speaker 1: warn that if confidence erodes, borrowing costs could climb even higher,
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  Speaker 1: compounding the challenge. Political debate has intensified. Supporters of expansive
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  Speaker 1: spending argue that investments in infrastructure, defense, and social programs
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  Speaker 1: are necessary to sustain growth and protect national security. Critics
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  Speaker 1: counter that unchecked borrowing risks crowding out private investment, weakening
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  Speaker 1: confidence in U.S. creditworthiness, and leaving future generations with an
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  Speaker 1: untenable burden. For households, the implications are tangible. Elevated debt
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  Speaker 1: levels translate into higher borrowing costs across the economy, eroding
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  Speaker 1: affordability and dampening investment. Businesses face similar pressures, with financing
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  Speaker 1: costs rising sharply. Crossing the $ 40 trillion threshold is more
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  Speaker 1: than symbolic. It marks a turning point in America's fiscal trajectory,
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  Speaker 1: highlighting the urgency of addressing structural deficits. Whether through spending cuts,
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  Speaker 1: tax reforms, or new growth strategies, policymakers face difficult choices
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  Speaker 1: as the nation confronts its largest debt burden in history.