Clued-in | U.S. debt surges past $40 trillion, triggering domino effect

Cartoon by Tan Xiguang

The U.S. federal government's debt surpassed $40 trillion for the first time on Aug. 19, highlighting the staggering scale of the country's debt burden.

It would take 110 years to pay off the debt even at a rate of $1 billion per day. The figure works out to roughly $117,000 in debt per U.S. resident.

The unchecked expansion of U.S. debt is not only eroding the country's economic growth potential but also weighing heavily on the global economy.

The $40 trillion debt burden could export risks to the global economy by driving up financing costs, disrupting cross-border capital flows and undermining market liquidity, creating a domino effect across global markets.