The national debt quietly surpassed $30 trillion on January 31.

After lifting the debt ceiling, the United States government has been accruing debt alarming. On December 16, the national debt surpassed $29 trillion. Uncle Sam just needed 46 days to add another $1 trillion to his massive mountain of debt. In less than five years, the national debt increased from $20 trillion to $30 trillion.

And the borrowing and spending show no signs of abating. Despite a monthly record in Treasury collections, the federal government ran a deficit in December. The federal government spent $508 billion in only one month. It was the most expensive December ever.

The federal government has already spent $1.43 trillion in the first three months of fiscal 2022. According to Reuters, this is a record for the first quarter of any fiscal year.

There will be much more expenditure in the future. Congress has already enacted a big infrastructure bill. The "Build Back Better" measure is currently on hold. But there is a little question whether the Democrats will develop another proposal or coerce Joe Manchin (D-WV.) to support it. According to supporters of these large-scale expenditure schemes, tax hikes and government savings will "pay for" the spending. However, it is almost transparent that tax collections will fall short of estimates, and spending will be greater than anticipated.

That's how the government has always worked.

According to the National Debt Clock, the debt-to-GDP ratio is 128%. Debt has effects, despite the overall lack of concern in the mainstream. Increased government debt suggests sluggish economic growth. According to studies, a debt-to-GDP ratio beyond 90% slows economic development by roughly 30%.

Thirty trillion is an illogical figure. To put the debt into perspective, each US citizen would need to write a check for $90,221 to pay it off. Taxpayers bear an even more significant burden. To close the deficit, every American taxpayer would have to pay $239,808 in taxes.

One of the reasons Peter Schiff believes the Fed can't accomplish what it promises it would do to combat inflation is the Fed's ever-increasing debt. The central bank must raise interest rates. That, however, would not bode well for a government mired in debt. Any significant increase in interest rates will bankrupt the US Treasury.

Furthermore, the US government requires the Fed to monetize all this debt. The central bank uses money generated out of thin air to buy Treasury bonds on the open market creating fake demand in the Treasury market and making debt borrowing easier for the US government. Since 2019, the Fed has purchased four times as many Treasury bonds as overseas investors, and it is becoming one of the most critical players in the Treasury market. In 2020, the Fed will have monetized more than 100% of notes and 90% of US bonds.

Who will pick up the slack if the Fed follows through and exits the bond market? And what if the Fed starts decreasing its balance sheet and selling bonds in the market?

Crossing the $30 trillion mark will generate some media attention in the coming days, but Uncle Sam will quickly return to business as usual — borrow and spend. The truth is that the mainstream believes the debt isn't an issue since it hasn't been demonstrated to be one yet. But nothing is an issue unless it becomes one. Kicking the can down the road works well until you run out of options.