The total debt of the US federal government exceeded $34 trillion for the first time as of Jan 2, only three and a half months after it topped $33 trillion, and five years earlier than the Congressional Budget Office had predicted.

The total debt is more than 120 percent of the GDP of the United States, and if every US family contributes $1,000 a month, the debt would take 22 years to pay off. Many people cannot help but wonder how did the US build up such a huge debt?

In order to fund its ever-growing fiscal deficit, the US government has long issued treasury bonds, and because of low borrowing costs, the "debt snowball" has become bigger and bigger. The outbreak of the COVID-19 pandemic further plunged the US economy into a predicament. To spur economic recovery, the US government increased its debt issuance. At the same time, in order to curb inflation, the US Federal Reserve has raised interest rates time and again, further increasing the debt repayment costs for the US government. This, coupled with higher government spending and lower tax revenues, has led to the continuous expansion of the US debt.

Analysts predict that based on the current trends, the US government will have more than $2 trillion new debt each year, and considering the bitter dogfight between the two parties over budgetary issues and the government's lack of means to address them, the US' debt problem will continue worsening.

According to the US Congressional Research Service, since the end of World War II, Congress has adjusted the debt ceiling hundreds of times to prevent a government shutdown due to insolvency, often leaving it until the last minute. This not only causes serious turmoil in the financial markets, but also raises doubts about the ability of the US government to pay debts. Fitch Ratings downgraded the US' sovereign credit rating.

The record high of the US debt has hit and the risk of default are bound to affect foreign investors' confidence in the US economy. If investors reduce their holdings of US treasury bonds, the dollar will face depreciation pressures, which will further aggravate the US government's debt repayment burden and financing difficulties. In the context of the looming debt crisis, the US will have to cut government spending on the programs related to people's livelihood.

The failure to resolve many of its deep contradictions in the economy has caused repeated occurrence of the debt crises in the US. This has not only brought hidden dangers and instability to US society, but also brought more uncertainties to the world.