The United States Debt Enters Mathematical Collapse – Interest Can Reach $2.2 Trillions

Igor Pereira · December 23, 2025

Traders, the most shocking statistic of the day has just been released, and it confirms the thesis of "tax sustainability" that we have operated on ExpertFX. It is not a matter of politics, but of simple arithmetic: the United States has entered a vicious cycle where they need to borrow money just to pay interest on the old debt.

Below, we dissect the numbers projected by Committee for a Responsible Federal Budget (CRFB) and the direct impact on its investments.

By Igor Pereira Financial Market Analyst

The graph is terrifying for any long-term dollar holder.

The Jump: Interest costs on U.S. public debt may reach up to $2.2 Trillions in the next decade.
The Comparison: This would represent an increase in +127% regarding the already massive $970 billion reported in the fiscal year 2025.
The Meaning: To put in perspective, $2.2 Trillion is more than the GDP of whole countries like Brazil or Italy, spent Just to pay interest, without amortizing a penny of the principal debt or financing public services.

The report highlights a data that defines the technical failure of the current model:

Annual loans: The government projects to borrow about ~ $2 trillion a year for the next decade.
The Spiral: As a result, at least ~50% of all borrowed money each year will only pay the debt service.
== sync, corrected by elderman == The government is issuing new credit cards just to pay the minimum invoice of the old cards. This is the definition of an unsustainable fiscal path.

If 50% of the new debt only serves to pay interest, there is no room for real investment or defense without massive printing of money (EQ).

Gold (XAU/USD): He's the direct beneficiary. When the solvency of the issuer of the reserve currency (US) is mathematically questioned, Central Banks accelerate the purchase of gold (as we have seen in the previous report).
Bitcoin:Potential to gain strength as the alternative "outside the system" that cannot be diluted by desperate politicians.
Yields: The long-term trend for interest is high (creditors will require more risk premium), unless the Fed intervenes with Interest Curve Control (YCC), which would be the final nail in the Dollar coffin.