US Debt Hits Record High of Rp465 Quadrillion

The United States national debt has risen to US$31 trillion, equivalent to Rp465 quadrillion (assuming an average exchange rate of Rp15,000 per US$), according to data released by the Treasury Department on Monday (October 3rd). This figure is the highest in US national debt history.

This value has increased significantly compared to the US national debt in August 2021, which was recorded at US$28.4 trillion, or Rp426 quadrillion. The rise in national debt to its highest level ever comes at a time when the US economy is facing rising interest rates and increased economic uncertainty.

According to CNN, the US government borrowed heavily during the Covid-19 pandemic to support the superpower's economy as the coronavirus disrupted life, the labor market, and supply chains. Unpaid debt has increased by almost $8 trillion since the beginning of 2020. And that debt has surged by $1 trillion in just eight months.

The Committee for a Responsible Federal Budget last month estimated that President Biden's policies could add $4.8 trillion to the deficit between 2021 and 2031.

"Excessive borrowing will lead to sustained inflationary pressures, push the national debt to new records as early as 2030, and triple federal interest payments over the next decade – or even sooner if interest rates rise faster or higher than expected," stated the Committee for a Responsible Federal Budget.