The $39 trillion national debt just got its own version of the viral Doomsday essay
No Labels has released a fictional but alarming report titled Nightmare on Main Street, depicting a U.S. economic collapse by 2029 triggered by failing Treasury bond auctions amid rising national debt. With the national debt surpassing $39 trillion and interest payments exceeding defense spending, the report warns of a crisis rooted in structural fiscal imbalances. The authors argue that neither political party has credibility on debt, and the government’s limited control over spending makes solutions especially difficult.
- ▪The U.S. gross national debt recently exceeded $39 trillion, reaching that level less than five months after hitting $38 trillion.
- ▪Net interest payments on the debt surpassed $1 trillion in fiscal year 2026, exceeding defense spending for the first time.
- ▪Only 27% of the federal budget is discretionary, meaning 73% of spending on programs like Social Security and Medicare is automatic and not subject to annual appropriations.
- ▪The report describes a fictional scenario in which Treasury bond auctions fail, leading to a crisis worse than the Great Depression.
- ▪Former Treasury Secretary Hank Paulson and the Committee for a Responsible Federal Budget have warned of real risks related to weak Treasury auctions.
Opening excerpt (first ~120 words) tap to expand
America has its viral AI doomsday essay. Now it has a debt version.Recommended Video No Labels, the centrist political organization that has spent 16 years pushing bipartisan solutions in Washington, has quietly released Nightmare on Main Street—a fictional “oral history” narrated from the vantage point of 2029, in which a cascade of weak Treasury bond auctions triggers an economic collapse worse than the Great Depression. It’s a deliberately unsettling document, written in the same near-future dystopian frame as the Citrini Research AI essay that briefly tanked software stocks earlier this year.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Fortune.
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