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Cosmo's Corner

August 6, 2024

Please be sure to read all the way down for good news.


U.S. National Debt Exceeds $35T


The U.S. national debt has reached a historic milestone, surpassing $35 trillion for the first time. Treasury Department data indicates that this staggering figure translates to over $104,000 per person and $266,000 per household. This highlights the growing fiscal challenges facing the world’s largest economy.

As of July 2024, the total public debt outstanding reached $35,001,278,179,208.67, marking a significant increase of $2.35 trillion over the past 12 months . This rapid growth averages about $6.4 billion per day, with the debt rising by $7.3 trillion since January 2021 . To put this in perspective, the national debt was approximately $907 billion just four decades ago . The current debt level equates to:

  • $104,497 per person
  • $266,275 per household
  • $483,889 per child

The debt-to-GDP ratio is projected to reach 99% this year, with forecasts indicating it will surpass 106% by 2027, breaking a nearly 80-year-old record set in 1946.

Several structural factors have contributed to the rapid increase in U.S. national debt:

  • An aging population, particularly the baby-boom generation, has led to increased spending on entitlement programs like Social Security and Medicare
  • Rising healthcare costs continue to drive up federal expenditures
  • The current tax system fails to generate sufficient revenue to cover government spending, resulting in persistent budget deficits
  • Increased government outlays for defense, social programs, and economic stimulus measures, including responses to events like the 2008 financial crisis and the COVID-19 pandemic

Additionally, tax cuts enacted in 2001, 2003, and 2017 have significantly reduced federal revenues, with the 2017 cuts alone projected to add $22 trillion to the national debt by 2034.

Usually, my newsletter brims with good news and optimism, and I remain hopeful for the future. This update might not be strictly good or bad news, but it marks an unprecedented milestone worth mentioning. While its implications for our country and us are unclear, I’m here to discuss it if you’d like. Feel free to call me.

MEANWHILE ~ BACK TO SOME GOOD NEWS.

What It Is: China has demonstrated the first fullscale meltdown-proof reactor, revolutionizing nuclear safety. While modern reactors are safer, meltdown risks persist when cooling systems fail. Now, researchers at Tsinghua University have proven a game-changing design: the 200-megawatt HTR-PM. This reactor uses “pebble” fuel instead of rods, allowing passive cooling. In a groundbreaking test, they cut power to a live plant —and it cooled naturally in 35 hours! This “inherently safe” design could transform the nuclear industry, providing clean energy without meltdown fears.


Why It Matters: AI is power-hungry. It’s predicted that AI will require 100% of the U.S. energy
production by 2030. While China has been rapidly scaling its energy production (see chart below), the U.S. energy output has been flat. China’s meltdown-proof nuclear reactor marks a pivotal moment for clean energy and is likely the approach the U.S. will need to meet both its AI objectives as well as its climate goals. This breakthrough directly addresses our greatest nuclear concern, clearing the path for safer, more
widespread adoption. It exemplifies how technology can overcome our most daunting challenges and create abundance. This is ultimately the type of energy power plant I’m happy to have in my backyard.

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