A giant debt balloon, increasing by tens of thousands of dollars every second, is sweeping global wealth into a storm of uncertainty, and the solution may lie within decentralized algorithms.
The newly updated data shows that the total debt of the U.S. federal government has exceeded $38 trillion for the first time, and the pace of debt growth is staggering, increasing by nearly $70,000 every second. This means that in one minute, U.S. debt balloons by about $4.2 million. Calculated, it averages to nearly $107,000 of debt per American.
However, the real crisis goes far beyond cold numbers. When the U.S. government spends $100, nearly $40 of it is borrowed, and it must pay over $1.2 trillion in interest each year. Global investors face a soul-searching question: Can the dollar system, built on such fragile credit, still safeguard our wealth?
01 Debt 'carcinogenesis': America's 'heart disease' and 'drug' addiction
Three of the world's top economists have recently issued a rare joint statement, comparing America's debt predicament to a 'heart disease' and warning that it has reached a critical point. This 'heart' is pumping blood in a dangerous manner.
The symptoms are structural: mandatory expenditures such as social security and healthcare now account for 73% of the federal budget, severely squeezing fiscal adjustment space. Political polarization has made it difficult for the government to implement structural reforms to 'strengthen the heart,' forcing reliance on 'painkillers'—borrowing more new debt to pay the interest on old debt.
The 'death cross' between debt rates and economic growth is approaching. When the actual interest rate on debt (r) consistently exceeds the economic growth rate (g), the debt-to-GDP ratio will spiral upwards, and the debt crisis will become irreversible. The three major international rating agencies—Moody's, Fitch, and S&P—have successively stripped the US of its highest credit rating, reflecting the market's distrust in this 'drug addiction'-style crisis.
02 The 'chronic suicide' of the dollar: a credit erosion lasting half a century
The dollar's issues go beyond numbers; they lie in the continuous 'evaporation' of its intrinsic value. A striking comparison is: in 1971, $35 could be exchanged for 1 ounce of gold; today, the price of 1 ounce of gold has exceeded $4,400. This starkly reveals the astonishing shrinkage of the dollar's purchasing power over the past half century.
This process can be viewed as a form of 'implicit taxation' on global dollar holders. When the US government dilutes debt pressure through currency issuance, everyone holding dollar assets around the world passively bears the cost of their wealth diminishing.
A more profound impact is the shaking of the dollar's foundation. The Bank for International Settlements points out that the dollar's global dominance is being challenged by its debt issues. From BRICS to ASEAN, the global process of 'de-dollarization' is accelerating, with countries exploring new trade settlement systems that bypass the dollar. When sellers begin to refuse dollars, the cornerstone of its reserve currency status starts to loosen.
03 The conspiracy in the crisis: the US attempts to turn stablecoins into 'treasury bond buyers'
Faced with overwhelming selling pressure, the United States is urgently seeking new buyers for its massive treasury bonds. A publicly discussed strategy has emerged: to transform the rapidly growing dollar stablecoin market into the 'on-chain buyer' of US treasuries.
According to the (Genius Act) passed in July 2025, the US government is attempting to deeply bind dollar stablecoins (like USDT, USDC) to treasury bonds. The act stipulates that the majority of reserve assets of stablecoin issuers must be invested in short-term US treasury bonds. The logic is that the global demand for stablecoins will directly translate into rigid purchasing power for treasury bonds.
Predictions indicate that by 2030, the scale of US treasuries held by stablecoin issuers could exceed $1.2 trillion, surpassing any single country's holdings. This undoubtedly marks a 'new currency war' initiated by the US to extend the dollar's hegemony and shift debt risks. It reminds us that the inherent stability of the existing centralized stablecoin system still relies on the shaky old world credit system.
04 Paradigm shift: from centralized 'credit dependence' to decentralized 'algorithmic trust'
Against the backdrop of traditional centralized stablecoins (like USDT, USDC) becoming deeply tied to treasury bond risks, the market's demand for a completely new stable paradigm has become unprecedentedly urgent. This is precisely the opportunity for the concept of Decentralized USD (USDD).
Unlike models reliant on the sovereign credit and bond reserves of a single country, decentralized stablecoins represented by USDD have their stability rooted in a publicly transparent algorithmic mechanism and over-collateralization. The core innovation of USDD 2.0 lies in introducing an over-collateralization mechanism, where each circulating USDD is backed by on-chain assets worth more than 100% (such as BTC, ETH, TRX, etc.), all collateral stored in publicly verifiable smart contracts.
Its price stability module (PSM) allows USDD to be exchanged with USDT and others at a 1:1 zero slippage rate, automatically maintaining the peg through market arbitrage forces. More importantly, USDD is evolving from a medium of exchange to a 'yield-bearing asset.' Its smart allocator can securely allocate part of the reserve funds to audited DeFi protocols, creating sustainable on-chain returns for holders. This means that while the traditional fiat currency system erodes value due to debt and inflation, USDD provides a new choice that does not rely on the old system and can achieve value preservation and appreciation.
#USDD sees stability and trust
05 The eve of a new order: How will global capital redefine 'safe assets'?
We stand at a crossroads of the old financial order fracturing and new value consensus emerging. US treasuries, as the anchor of 'risk-free assets' in the global financial system for more than half a century, are being crushed under their own weight.
For investors, this means reconstructing the understanding of 'safety' and 'value':
Beyond single credit: detaching the sense of asset security from dependence on a single country's (the US) credit and shifting towards a diversified value support system.
Embrace rule transparency: In an era filled with uncertainty, rules written in code, publicly verifiable, may be more trustworthy than political promises. Protocols like USDD, with their over-collateralization rates and reserve compositions fully traceable on-chain, offer a transparency unmatched by traditional financial products.
Seek certainty in returns: In the expectation of dollar purchasing power being diluted, passive cash holdings may be the worst choice. Instead, seeking assets with endogenous yield mechanisms, such as decentralized stablecoins that can generate stable returns through DeFi strategies, is a more proactive defense strategy.
True safety no longer comes from an unfalling giant, but from a network that remains resilient even when some nodes fail. When centralized credit beacons become flickering, the decentralized value network, maintained by global nodes and governed by mathematics and code, is becoming increasingly clear.
The growth of US treasuries by tens of thousands of dollars every second is the tail trace of the inertia of the old system. It creates an illusion of prosperity while accumulating disruptive energy.
This is not merely an economic crisis but a profound crisis of trust. It forces global capital to rethink: in an era where credit can be printed and diluted infinitely, what is truly a reliable destination for wealth? The answer lies in unalterable code, publicly transparent rules, and value networks built on global consensus.
The contours of the future financial order may no longer be sketched by Washington's conference rooms, but defined by verified smart contracts on-chain.
