The numbers are staggering. In May alone, the US government collected $371 billion in revenue. That should be enough to keep things running smoothly, right? Not even close. Washington spent $687 billion, leaving a $316 billion deficit in just one month.
This isn’t a temporary shortfall. The annual deficit has already climbed to $1.365 trillion, up 14 percent from last year. The debt burden is growing, and the cost of financing it is spiraling out of control. Interest payments alone topped $92 billion in May, surpassing nearly every other federal expense except Medicare and Social Security.
Jeffrey Gundlach, the billionaire bond investor, isn’t mincing words. “A reckoning is coming,” he warned, pointing to the unsustainable trajectory of US Treasury debt. Investors are starting to question whether long-term government bonds are still a safe haven. The latest $22 billion auction for 30-year Treasuries is a crucial test, as demand for US debt weakens.
Treasury Secretary Bessent has sounded the alarm. If the debt limit isn’t resolved, the consequences could be catastrophic. “It could trigger the biggest financial crisis since 2008,” she cautioned. Markets are already reacting. Bond yields are climbing, stocks are wobbling, and gold is seeing renewed interest as investors seek shelter from uncertainty.
JUST IN: 🇺🇸 Treasury Secretary Bessent says if the debt limit is not resolved, it could trigger biggest financial crisis since 2008. pic.twitter.com/D3wAoyl4jI
— Watcher.Guru (@WatcherGuru) June 11, 2025
The spending won’t stop until it’s forced upon Washington by the markets. The debt crisis isn’t looming, it’s here. Are you paying attention yet? Permanent deficits are a global reality, fiat is losing its value, and the only true safeguard is owning real money is gold.
Sources:
https://www.fa-mag.com/news/doubleline-s-gundlach-says–reckoning-is-coming–for-u-s–debt-82886.html
https://finance.yahoo.com/news/us-long-dated-debt-faces-061500572.html
https://businessmirror.com.ph/2025/06/12/us-long-dated-debt-faces-crucial-test-in-22-b-auction/
https://www.fiscal.treasury.gov/files/reports-statements/mts/mts0525.pdf