Today is a historic day—U.S. national debt has officially surpassed $40 trillion for the first time! What does this mean? If the current interest rate of 3.75% remains unchanged, annual interest payments will amount to $1.5 trillion. That’s equivalent to $1 out of every $5 in tax revenue collected by the U.S. government being used solely to pay debt interest. If there’s a 25 basis point rate hike at the end of the year, every 25 basis point increase will add approximately $100 billion in annual interest expenses. The debt death spiral is beginning. To cover these massive additional interest payments, the U.S. Treasury will have no choice but to issue more debt. This will create a vicious cycle of high interest payments → widening fiscal deficit → increased issuance of U.S. debt → further rise in yields. This was also one of the key points discussed by Hong Hao during Thursday’s Binance @binancezh event. His main takeaway: massive debt created out of thin air will devour everything. The best options are gold and $BTC! Increase your positions in $BTC and gold! We can win! Rate cuts, rate cuts, rate cuts—this is the inevitable path forward! This post is sponsored by @binancezh: "Buy U.S. stocks on Binance—global assets, zero time lag, instant access!