President Donald Trump needs to focus on the potential fallout of the United States’ soaring debt triggering a global financial crisis as national debt approaches $39 trillion, warns the chief executive of one of the world’s largest independent financial advisory organizations.
Nigel Green of deVere Group’s comments come as US (United States) government liabilities surged past $38.4 trillion in early January. The debt increased by $2.25 trillion in the past year alone and is on track to breach $39 trillion by approximately March 2026. The US has added more than $10.7 trillion to its debt in just five years, underscoring the accelerating pace of borrowing.
Green said that this month alone, Trump and his administration have been focused on Venezuela, legal action against Federal Reserve (Fed) Chair Jerome Powell, acquiring Greenland, tariffs on European allies, and lawsuits involving JPMorgan Chase CEO (Chief Executive Officer) Jamie Dimon. Behind the scenes, the US national debt continues to soar at a pace that should dominate the economic agenda, he said.
The deVere chief warned that the scale and speed of borrowing now represent a systemic global risk rather than a domestic political talking point. Debt accumulation has become routine in Washington, but markets will not treat it as routine forever, he said.
The US is borrowing trillions every year while interest costs alone are approaching levels that exceed defense and Medicare spending. This is a structural vulnerability that investors, policymakers, and global partners cannot, and should not, ignore, Green added.
Federal fiscal data show net interest payments on the public debt surpassed $1 trillion for the first time in fiscal year 2025, with total gross interest costs reaching $970 billion. Net interest costs have almost tripled over the past five years, driven by higher interest rates and the expanding stock of debt. The Congressional Budget Office (CBO) projects net interest payments will reach $1.0 trillion in fiscal 2026 and $1.8 trillion by 2035.
Green said interest is now one of the largest items in the federal budget. Paying creditors is consuming resources that could otherwise fund productivity, innovation, or tax relief. This is the classic debt spiral dynamic that every emerging market fears, yet it’s now visible in the world’s largest economy, he said.
He added that the US enjoys unparalleled financial privilege because the dollar is the global reserve currency, but that privilege should not be mistaken for immunity. Global investors buy Treasuries because they trust the US system. If that trust weakens, yields will rise, the dollar could become more volatile, and global borrowing costs will climb. Every mortgage holder, corporate borrower, and emerging market government would feel the shock, he warned.
Green argued that the US debt trajectory has direct implications for inflation, monetary policy, and global asset markets. When debt becomes politically untouchable, governments lean on central banks to keep rates lower and inflate away liabilities. This erodes purchasing power and distorts capital allocation. Investors should understand that high debt changes the entire macro regime, he said.
The deVere executive stressed that debt is rising at a time when the US faces mounting demographic and geopolitical pressures. Social Security and healthcare spending are increasing as the population ages, while defense outlays and industrial policy ambitions continue to expand.
The fiscal reality is brutal. Mandatory spending is rising automatically, discretionary spending is politically sensitive, and tax revenues are insufficient to close the gap. Without credible reform, borrowing remains the default option, he said.
Through the first three months of fiscal year 2026, which began October 1, 2025, the cumulative deficit was $601 billion at the end of December, 16 per cent lower than the same period last fiscal year after adjusting for timing effects. The CBO projects the total fiscal 2025 deficit settled at $1.8 trillion when the fiscal year ended on September 30, 2025.
Green cautioned that markets are often complacent, until they are not. Debt crises rarely announce themselves years in advance. They emerge when confidence shifts, when buyers demand higher compensation, or when political dysfunction undermines fiscal credibility, he said.
US debt is the backbone of global reserves, banking collateral, and risk pricing. If that backbone weakens, the consequences will cascade through equities, currencies, commodities, and credit markets worldwide, he warned.
Despite the risks, the deVere chief emphasized that the situation is not yet a crisis but a slow moving macro event that demands leadership. The US still has time to stabilize its fiscal path. It requires confronting spending growth, tax policy, entitlement reform, and the cost of servicing debt. Ignoring the issue while pursuing headline grabbing geopolitical projects is a strategic error, he said.
As a share of federal revenues, federal interest payments reached 18.4 per cent by the end of 2025, exceeding the previous high set in 1991. CBO projects they will reach 22.2 per cent by 2035. As a percentage of total spending, interest costs would reach 15.6 per cent by 2031, surpassing the previous high of 15.4 per cent set in 1996.
The debt has been growing at an average rate of $6.17 billion per day, or about $71,800 per second, according to the US Joint Economic Committee Republicans. Total gross national debt amounts to $112,966 per person or $285,127 per household as of early January 2026.
Green concluded that debt at this scale reshapes geopolitics and financial markets. The US has a responsibility not just to its citizens but to the global system that depends on its stability. The longer Washington postpones serious fiscal reform, the higher the eventual cost for everyone, he said.
