The U.S. government alone has accumulated over $36 trillion in debt, with a debt-to-GDP ratio hitting 123 percent, necessitating $881 billion in interest payments for 2024.

The world economy has heavily relied on credit for decades, resulting in an unsustainable explosion of debt that poses a significant threat to global stability.

According to the OECD's Global Debt Report 2025, the total government and corporate bond borrowing reached an alarming $25 trillion in 2024, contributing to a worldwide debt total exceeding $100 trillion, nearly equivalent to global GDP.

Many advanced economies are grappling with budget deficits, forcing governments to borrow extensively to cover existing debt interest, which creates a precarious financial landscape.

Projected interest costs for the U.S. are expected to soar to $1.8 trillion by 2035, placing immense strain on federal resources.

Rising interest rates, coupled with low investment in productive capacity, are exacerbating the looming debt crisis, as corporations prioritize shareholder payouts over sustainable growth.

The OECD warns that nearly 45% of sovereign debt in advanced countries will mature by 2027, heightening the risk of defaults as borrowing costs continue to rise.

In developing countries, sovereign debt has tripled from $4 trillion in 2007 to $12 trillion in 2024, forcing many nations to allocate over half their budgets to service foreign debt, leading to severe social hardships.

Countries like Pakistan are particularly affected, with significant portions of their budgets directed towards servicing foreign debt, exacerbating social challenges.

While the U.S. dollar's status as the world's reserve currency has provided temporary relief, recent credit rating downgrades raise concerns about its long-term stability.

Without a fundamental overhaul of the capitalist system, the ongoing cycle of debt and crisis is likely to persist, as the ruling class struggles to find viable solutions.

As the gap between wealth production and living standards widens, the potential for revolutionary upheaval increases, with workers increasingly burdened by the financial crisis.