The U.S. national debt topped $40 trillion in August, and federal interest costs reached $1.25 trillion in 2025. Investor Howard Marks says moving money out of U.S. markets carries risks; the article recommends maintaining a long-term, diversified stock-and-bond plan.
The debt-to-GDP ratio has exceeded 120%, while publicly held debt alone is above 100% of GDP. Interest costs accounted for 18.5% of tax revenue in 2025, and the 10-year Treasury yield reached 5.18% as of publication, its highest since 2007. The article identifies Social Security, Medicare and defense spending as major debt drivers.
Marks wrote that foreign stocks and bonds might gain value in dollar terms if the dollar falls, but other countries have fiscal and political risks; he cautioned that moving money out of the U.S. to avoid a possible debt reckoning that may be far off could backfire. The article says gold and cryptocurrencies are not guaranteed protections against currency debasement and points to companies with pricing power and geographically diverse revenue.
