The accelerated growth of the US national debt can create big problems for the world economy, particularly for developing countries. Such an opinion is given in a commentary of the Global Times newspaper—and regarding the US national debt surpassing $36 trillion for the first time in history.

“While the US, with the dollar's dominant position in the global economy and the Federal Reserve's strong monetary policy control, may still be able to sustain its federal debt system in the foreseeable future, the accelerated increase in the US national debt still presents significant challenges to the global economy, particularly affecting the developing world,” writes the Global Times.

“The total amount of US national debt hit the $34 trillion mark in early January 2024 before reaching the $35 trillion mark in late July. The increase from $35 trillion to $36 trillion took only over three months, indicating that growth in US federal government debt is accelerating,” the newspaper notes.

“This growing fiscal burden risks undermining confidence in US Treasury bonds, which could lead to higher yields and increased volatility in global financial markets. For developing countries, these dynamics often translate into capital outflows, currency depreciation and rising borrowing costs, further complicating their economic development,” the article says.

"What's more worrying is that the continuous rise in US debt is no longer merely a short-term trend, but a significant long-term challenge resulting from the cumulative effects of complex and enduring economic, political and social issues," it added.

“The ongoing imbalance between government fiscal expenditures - spanning social welfare, defense spending, and infrastructure development - and tax revenues has become increasingly evident,” the Global Times notes.