The US federal debt has surged over $1 trillion in just 48 days, reaching a staggering $37 trillion as of August 11th, 2025. This unprecedented increase is driven by surging government spending outpacing revenue growth and rising interest rates. Experts have warned that this unsustainable level of borrowing poses a serious risk to the US economy. The Kobeissi Letter highlights the dramatic fiscal situation, pointing out that spending has increased 9.7% year-over-year, while revenue only grew by 2.5%. This imbalance fuels ever-increasing deficits and pushes the national debt towards levels unseen since World War II. While some argue for aggressive cuts in government spending to address the deficit, experts warn of potential economic turmoil and even financial instability if action isn’t taken soon. The current trajectory suggests a looming fiscal crisis, potentially leading to long-term stagnation and loss of control over monetary policy, akin to Japan’s experience with excessive debt.