US debt hits $40tn — will it be a wake-up call?

US debt has hit $40tn - Will that be a wake-up call?

US national debt passed $40tn this week, doubling in a decade and rising by about $90,000 every second, according to the Congress Joint Economic Committee. Interest payments now consume almost 20% of tax revenue, larger than defense spending, says economist Mohamed El-Erian. Economists call it a 'flashing yellow light,' not red, but warn of a vicious cycle as investor appetite for US bonds diminishes.