I’m curious how often we talk about cryptocurrencies and decentralization, but forget about the fundamental problems of the traditional financial system. For example, the United States’ external debt is an issue that affects the entire global market, including crypto.

Let’s unpack where this debt actually came from and why it keeps growing. The story dates back to the war for independence at the end of the 18th century. Americans borrowed money to finance the war against Britain, and by 1790, the debt was around 75 million dollars. Not a bad start, right?

Then, in the 19th century, the debt grew again during the Civil War—armies needed weapons and supplies, and all of that costs money. And in the 20th century, things only got more complicated. When the Great Depression hit, the government began actively taking out loans for anti-crisis programs like the New Deal. But the real jump happened during World War II—at that time, U.S. debt exceeded 100% of GDP. That was a serious measure, but it was justified at the time.

As for today, the U.S. external debt continues to grow for several reasons. First, persistent budget deficits—spending exceeds income. Second, military spending. Third, social programs like Medicare and Medicaid require huge investments. On top of that, there are periodic tax cuts implemented by different administrations. And of course, financial crises—in 2008 and especially in 2020 during COVID, the government sharply increased spending to rescue the economy.

Right now, the situation is this: U.S. national debt has surpassed 34 trillion dollars, which is more than 120% of GDP. That’s a serious figure. Interestingly, about 70% of this debt is held domestically—by the Federal Reserve, pension funds, banks, and American investors. The remaining 30% is the U.S. external debt, which belongs to foreigners. Japan, China, the United Kingdom, and other countries lead here.

Why does this matter? Because the United States continues to service this debt by paying interest, but the growth in indebtedness is beginning to raise serious questions about long-term financial sustainability. When the central reserve system of one of the world’s largest economies is in such a situation, it affects everything—from currency markets to cryptocurrencies. The U.S. external debt is becoming an increasingly relevant topic not only for economists, but for everyone who keeps an eye on global financial processes.