This Jaw-Dropping Debt Crisis Could Bring America to Its Knees – And Fitch Knows It!

The national debt in the United States has surged by an astounding half a trillion dollars in just three months, highlighting growing concerns over the country’s financial stability. Recent figures from the U.S. Treasury show a sharp increase in the national debt, climbing from $34.6 trillion on June 3rd to a staggering $35.3 trillion by September 3rd. This represents a hefty rise of $684 billion in just 90 days.

This sharp increase follows closely on the heels of a major milestone—when the U.S. debt surpassed the $35 trillion mark. With the country’s borrowing continuing to escalate, many are left wondering about the long-term implications for the U.S. economy.

One of the leading voices expressing concern is Fitch, a well-known credit rating agency. Fitch has repeatedly raised alarms about the ballooning debt and the widening deficit. Despite maintaining a high rating for the U.S., the agency is cautious about offering the country its highest endorsement, citing underlying fiscal issues that remain unaddressed.

In its recent commentary, Fitch reaffirmed the U.S.’s long-term “AA+” credit rating. While the agency acknowledges the country’s strengths—such as a high per capita income, the world’s largest economy, and a dynamic business environment—it refrains from upgrading the U.S. to the coveted “AAA” rating. The reasoning? Persistent fiscal challenges.

“The ratings are constrained by high fiscal deficits, a substantial interest burden, and high government debt, all of which are more than double the ‘AA’ rating medians…” Fitch stated. The agency went on to highlight that the U.S. government has failed to address these critical financial issues in any meaningful way. Moreover, the looming costs associated with an aging population only add to the problem.

One area where the U.S. continues to maintain an advantage over other nations is the dollar’s status as the world’s reserve currency. However, Fitch warns that this position of strength is not without risk. If the country continues to rely heavily on debt to finance its expenditures, trust in both the U.S. and its currency could be shaken.

“However, persistent rises in the public debt burden would increase vulnerability to economic and confidence shocks,” Fitch noted, pointing to the potential dangers ahead.

Last year, Fitch downgraded the U.S. credit rating from “AAA” to “AA+,” citing concerns over expected fiscal deterioration. As the debt continues to spiral, Fitch’s cautionary tone signals that the U.S. may face even greater scrutiny in the future if its financial issues are not resolved.

The ever-increasing national debt is now a prominent talking point among economists and financial experts. The continued rise not only threatens the country’s economic standing but also raises questions about how future generations will shoulder the burden of this growing debt.

While the U.S. remains an economic powerhouse, the weight of its debt could one day limit its ability to respond to future financial crises or emergencies. For now, the situation remains precarious, with Fitch and other financial watchdogs keeping a close eye on what happens next.