Despite Treasury Secretary Scott Bessent’s recent assurance that the U.S. will “never” default on its debt, history tells a different story. The U.S. has actually failed to meet its financial obligations several times since 1789, including during the War of 1812, the Civil War, and the 1933 gold clause abrogation under FDR.
With U.S. debt-to-GDP now above 120% and rising, concerns about long-term default risk are growing. Recent Treasury bond market behavior reflects this anxiety, with 30-year yields jumping sharply in spring 2025. While default isn’t imminent, the article warns that dismissing this possibility entirely is no longer prudent.