If you love your country, break out your checkbook and make out a check to Uncle Sam for $109,552. That’s how much each United States citizen owes for the national debt. If you are married with two grown children and you’re on fire to ante up, write a check for $438,208.
Please, I don’t want to hear any squawking about why we shouldn’t tolerate this debt situation in the U.S. Why? Failure to act when you had the chance. Many people who read this helped elect those who created these monstrous debts. You see, the people we have voted for over the last 30 years — our “representatives” in the hallowed halls of federal government — have done this dirty deed to us. Where are the angry mobs to mete out justice to all those liberal politicians who promised they could solve problems by borrowing and spending?
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Beyond what we all might owe is a greater problem lurking. If you have never heard about the fiscal crisis coming, dubbed by economist John Mauldin as The Great Reset, we could also call it The Great Battle of Our Time. Mauldin states that we are on the way to a period that he calls The Great Reset, which, in essence, is an international debt and economic train wreck. It won’t be just another recession or a depression; it will most likely be a true, world-shaking, generational crisis. Mauldin thinks it will strike late in this decade. As it hits, we will have to deal with the most dangerous twin bubbles in history: global debt, especially government debt, and in the U.S., the great bubbles of debt and government promises and unfunded liabilities (Social Security, Medicare, government pension plans, expensive welfare, etc.). Unfunded benefits in present value terms are over $70 trillion for Social Security and Medicare only, and $100-$200 trillion for other federal commitments like federal pensions, welfare, and using infinite-horizon models.
As of early 2025, the total global debt has reached an unprecedented $318 trillion, marking an increase of nearly $7 trillion in 2024 alone. This figure encompasses government, corporate, and household debt worldwide. As for America, you might ask, what is each American citizen’s share of the total federal debt in the U.S.? As of April 2025, the total U.S. federal debt is $36.7 trillion, and our population is about 335 million. So, each American citizen’s share of the federal debt is around $109,552.
But let’s get to the scary point, which is that this country has now succumbed to Ferguson’s Law, which is a theory that any powerful, great nation that spends more on federal debt service than on military defense is on the way to losing its position as a great power. When debt service exceeds defense spending, this is a tipping point where the country’s debt burden diverts crucial resources away from national security, making it weaker and vulnerable to military challenges. In 2024, America spent $1.107 trillion on defense and $1.124 trillion on debt service. And we haven’t even gotten into repayment of principal. Non-payment would be a sovereign default. The Ferguson Limit says we crossed the line and now risk ceasing to be a global power.
And America is projected to spend a rising share of our GDP on interest payments. This means we will move further beyond the crucial Ferguson Limit in future years. On top of that, our luxurious welfare system is also becoming more costly. Our population is aging, with higher life expectancy, which makes it harder to slash national debt. The only way the country can have a chance to reverse Ferguson’s Law is through new sources of revenue and high economic productivity. Cranking up the printing presses won’t solve it. That’s why President Trump’s ultimate goals are new and higher revenues through tariffs, cutting spending, and higher productivity by eliminating government waste, fraud, and duplication. The real battle of the next 10 years will be debt reduction and the U.S. government’s actions to cease violating Ferguson’s Law.
Other stories you may want to read:
- John R. Smith: The Coming Great Battle for America - April 14, 2025
- John R. Smith: A Turning Point for America: Pondering Trump’s Plans & Obstacles - March 12, 2025
- John R. Smith: Regulatory Relief for Businesses May be On the Way - March 5, 2025