US National Debt Breaches $40 Trillion Mark, Fiscal 'Death Spiral' Quietly Begins

The US federal debt has surpassed $40 trillion for the first time, surging by a trillion within three months, with annual interest costs reaching $1.37 trillion (up 20% year-over-year). The 'death spiral' driven by rising borrowing costs and self-expanding debt is accelerating. Although the Treasury has stepped up long-dated bond buybacks to temporarily ease market pressure, in the absence of deficit reduction measures and amid tax cut expectations, the debt ceiling will be hit again in four to five months.