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Macro Economy•8 April 2026•

1 min read

US Dollar Faces Structural Decline as Debt-to-GDP Ratio Surpasses 130%

Donald Trump, US flag, world map, cargo ships, containers, 'TARIFF TENSION' documents, Bitcoin coins, and financial charts.

Key Facts

1The US debt-to-GDP ratio has exceeded 130%.

2Interest payments on US debt have now surpassed the national defense budget.

3The US dollar is facing a structural decline as a global reserve currency due to unsustainable fiscal policies.

The US dollar is experiencing a structural decline in its status as the world's primary reserve currency due to unsustainable fiscal policies. Recent data reveals that the US debt-to-GDP ratio has exceeded 130%, raising significant concerns regarding long-term fiscal stability. Notably, interest payments on the national debt have now surpassed the total national defense budget for the first time. These fiscal pressures are undermining global confidence in the USD, potentially weakening its dominance in international trade and finance. As confidence wanes, investors and central banks are increasingly looking toward alternative safe-haven assets such as Gold (XAU/USD) and Bitcoin (BTC/USD). This ongoing shift suggests a broader trend of global de-dollarization as the market reacts to deteriorating US fiscal metrics.