The United States is barreling toward a financial crisis that many Americans don’t fully grasp. Yet its impact will touch every household, retirement portfolio, and business in the country. We are fast approaching a staggering $40 trillion national debt. And that debt danger is escalating. In the next two years, nearly $18 trillion of that debt must be refinanced at today’s far higher interest rates. This isn’t just a number; it’s a massive avalanche of debt that threatens to bury our economy and your financial future.

A Growing Debt Crisis

As of mid-2025, the U.S. debt is near $37 trillion and expected to surpass $40 trillion within a year. That’s more than the entire U.S. GDP, an unprecedented borrowing spree. But what makes this so dangerous isn’t just the size. It’s when and how we must refinance it.¹

Nearly one-third of that debt, about $11 trillion, needs to be refinanced in 2025 alone. Add in 2026, and the total refinancing obligation climbs to roughly $18 trillion. The Treasury faces rolling over these colossal sums in a market where interest rates have skyrocketed compared to just a few years ago. This isn’t a simple rollover. It’s a financial juggernaut barreling straight toward us.²

Why Higher Interest Rates Make This So Risky

In 2020 and 2021, record-low interest rates made government borrowing relatively cheap. Those days are gone. Interest payments on the national debt jumped 34% last year to an eye-watering $949 billion, exceeding the combined spending on the military and Medicare. And that is before the biggest refinancing wave hits.³

Billionaire Ray Dalio, founder of Bridgewater Associates, warns we’re nearing a “debt death spiral,” where rising rates and mounting debt feed off each other, threatening economic collapse.⁴

This rise in borrowing costs is a direct threat to economic stability. Higher Treasury yields, meaning the government must pay more to borrow money, translate into higher rates on everything from mortgages to business loans and credit cards. For everyday Americans, this can mean higher monthly payments, less disposable income, and slower economic growth.

A Liquidity Crunch Could Spark Market Volatility

Michael Howell, CEO of Crossborder Capital, warns that global liquidity, the availability of cash and credit, is at a post-pandemic peak.  But will likely begin to dry up by early 2026. When that happens, the massive refinancing needs could trigger a liquidity crunch and send markets into turmoil.

Think back to 1987, when the Dow Jones plunged over 20% in one day. Howell’s warning suggests we could face a similar shock if investors lose faith in the government’s debt management.⁵

Washington’s Latest Move: Raising the Debt Ceiling

In July 2025, Congress passed the “One Big Beautiful Bill Act,” raising the debt ceiling by $5 trillion. It was the largest increase in history, pushing the limit from $36.1 trillion to $41.1 trillion. This move, backed by President Trump, averted a government shutdown and bought the Treasury crucial time.⁶

But this stopgap comes with heavy costs. Moody’s downgraded U.S. credit one notch below AAA. Financial leaders like JPMorgan CEO Jamie Dimon warned bond markets may demand even higher interest rates to absorb this flood of debt.⁷

In short, we gained time but at the price of higher borrowing costs and greater financial risk. The debt ceiling hike invites more borrowing and spending when fiscal discipline is desperately needed.

Long-Term Economic Damage

Based on current projections, the economic outlook over the next 10, 20, and even 50 years is grim. If current trends continue unchecked, GDP could shrink by more than a trillion dollars, costing millions of jobs and opportunities. Private investment, the engine of innovation, may dry up. For many Americans, forecasted stagnant or declining wages would mean tighter budgets and a harder life.⁸

This growing debt burden threatens not just the economy’s strength but the future of every American family.

What This Means for Your Retirement and Savings

Higher interest rates and market uncertainty don’t just affect the government. They hit your wallet. Retirement savings in 401(k)s, IRAs, and other portfolios tied heavily to stocks and bonds face increased volatility and risk. Equity markets could suffer, and bond yields rising means bond prices fall, putting conservative investments under pressure.

Conclusion

With debt soaring and nearly $18 trillion set for refinancing at higher rates, protecting your portfolio through diversification is more important than ever.

Physical gold, especially held in a tax-advantaged Gold IRA, has long been a trusted safeguard against inflation, market turmoil, and government debt crises.

Gold’s value isn’t tied to the “full faith and credit” of the U.S. dollar. It’s anchored in something far more reliable - real, tangible value you can hold in your hand.

Don’t wait until the debt crisis erodes your savings. Call American Hartford Gold today at 800-462-0071 to learn how a Gold IRA can protect your wealth and secure your financial future.

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Max Baecker is the President of American Hartford Gold (AHG) , the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes:

1. https://www.cnbc.com/2025/06/24/how-the-largest-debt-ceiling-increase-in-us-history-could-affect-you.html

2. https://www.foxbusiness.com/economy/nearly-one-third-36t-national-debt-needs-refinancing-trump-demands-rate-cuts

3. https://www.foxbusiness.com/economy/nearly-one-third-36t-national-debt-needs-refinancing-trump-demands-rate-cuts

4. https://www.cnn.com/2025/06/03/business/ray-dalio-deficit-bond-market

5. https://www.benzinga.com/crypto/cryptocurrency/25/08/46864278/bitcoin-gold-real-estate-are-key-inflation-hedges-before-2026-downturn-expert-warns

6. https://www.brookings.edu/articles/the-hutchins-center-explains-the-debt-limit/

7. https://www.reuters.com/business/finance/jpmorgan-ceo-jamie-dimon-tells-fox-business-us-debt-could-cause-bond-turmoil-2025-06-02/

8. https://www.pgpf.org/article/new-report-rising-national-debt-will-cause-significant-damage-to-the-u-s-economy/