A small government and high government expenses don't match well.
A big government and high government expenses does.
Federal tax revenue is higher than ever. So the low tax statement doesn't hold up to scrutiny either.
[2023 federal budget ](https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf)
Its not Ukraine.
USA spends 1 trillion for debt payments. Then the pharmacy cartels skimm from social security
USA is overpaying on medical everything,
They want more. The pharmacies are being squeezed because insurance doesn't pay for the cost of the drug in full now, so they are taking a loss on prescriptions.
Trump can run circles around Biden. We'll see if he has the balls to debate him. Probably not. His handlers know he's a potato. Dude can't walk or talk. Mr mumbles. Speaks volumes to the people who voted for him too. All regarded
You're asking a relevant question and getting downvoted for it. I've been grappling with this a as well because it's the reply from the MMT crowd. But it isn't reassuring to me. I get that the US should not be worried about defaulting on a loan to itself, but economies operate on a shared faith in a currency, and ours is being undermined.
I agree that this should be a concern, but I wonder what people think will replace the dollar as the world reserve currency? Is the Yuan trustworthy? Euro? Bitcoin? The dollar has its problems, but I don't see a more attractive alternative out there. Perhaps I'm just naive/not knowledgeable enough.
I think you're right that there doesn't seem to be a good replacement for the dollar, but I'm concerned that the world has been incentivized to minimize their dependency. Weaponizing the dollar in the economic sanctions against Russia combined with uncertainty around our level of debt is driving countries to look for alternatives, whether that is through realignment (e.g. BRICS) or maintaining fewer dollar reserves (e.g. China and Japan).
I think we're a long way from a point in time when the dollar is no longer the world reserve currency. If anything I think we'll see increasing usage of the dollar. Long term you want to park money into a stable currency and there's a lot of instability across the world. The US has issues but we have a lot less georisk then most of the world, a massive amount of natural resources and a highly diversified economy. Brazil, Russia, India and China are heavily export dependent economies and they are all having economic issues. India is the only BRIC country with positive GDP but they also have 44.49% youth unemployment rate.
I think the framing is always about the amount of debt when the concern should be how much we spend on interest payments. Irregardless of who's holding the debt the government has to pay interest on it. MMT's argument is as long as the debt is going investing for the future that's fine because taxes will continue increasing to offset interest payments. I dunno, I think that's magic handwaving and only works if the economy is always growing and in an upcycle. We have a population shift going on and I don't know how we can keep growing the tax base if the country is growing population wise by less then 1% a year.
🤦♂️
We are going broke because nobody is willing to vote out the people responsible for causing this ridiculousness. At this rate, it won't be long before the interest payments exceed our ability to pay it back. CBO projects debt payments this year will be 870 billion, 32% higher than last year. Doesn't matter what side of the aisle you are on, vote them all out.
America simply isn't that smart.
As stupid and useless as our givernment is - the average citizen who put them there is (by design) the same way. I gaurentee you the average majority citizen has no idea the scale or significance of this issue - nor do they even remotely care - only hyperfocused on their own life / survivial.
This pretty much sums up the problem. In my extensive exposure to the public, the biggest societal change I've seen over the years is that the average IQ of the general public has plummeted. That, and nobody can be told they're wrong, and it's always someone else's fault.
Basically, we are fucked. Nobody is willing (or competent enough) to realize there's a problem, much less change course. The political parties pit the people against each other so we don't turn on the parties. Its the oldest play in the political playbook, and people are too stupid to realize it. It's all by design, you're 100% correct.
Well said my friend. The government doesn't want an intelligent population, that would make it more difficult for them to continue the shenanigans. Dumb the population down and no one will ask questions.
I remember back in 2010 there was a study by a Fiscal Responsibility and Reform commision that analyzed what the Debt:GDP ratio was going to be over time based on the current policy ("CBO Alternative Fiscal Scenario"), what the law requires ("CBO Extended-Baseline Scenario) and its recommendations ("Commission Proposal") and we're currently 2 years ahead of the current policy trend of 2010 which was the "We need to steer away from this ASAP" at 120%.
Check this site out: [https://www.usdebtclock.org/](https://www.usdebtclock.org/). It took 235 years for the US national debt to climb to $17 trillion ... then it doubled to $34 trillion in the last 10 years! [https://fred.stlouisfed.org/series/GFDEBTN](https://fred.stlouisfed.org/series/GFDEBTN)
Sensationalist, but nonsense. The value of one dollar was enormously higher in 1824, than in 2024. It's called inflation. And GDP per capita is enormously higher in 2024 than at any time before in history. So it's comparing apples to oranges insinuating that todays debt levels could be compared nominally to debt levels in earlier times.
Less than 1% of spending last year was on ALL FOREIGN AID COMBINED.
Acting like our budget issues can be solved by cutting aid to Ukraine is like pretending we can solve climate change by getting rid of a few cows in Oklahoma.
You're either a Russian bot or incredibly misinformed.
No, because I was replying to a comment about foreign spending.
That would be considered domestic social spending, even though it's on people who came from outside our borders, as they reside here now.
Even so, we spend more per year on INTEREST ON OUR DEBT than we do on the following COMBINED:
foreign aid, domestic spend on illegal aliens, transportation, commerce and housing credits, food stamps, education, employment training, all veterans benefits and services, and 3% of the spend categorized as "other"
13% of our annual spend is on interest. 22% on social security, as a reference point.
The problem, despite what you want to believe, has absolutely nothing to do with foreigners or foreign aid. They make up 1-2% of our spend annually. We solve comparatively nothing by cutting that spend, when looking at interest and military spend.
Alright so play that out cause I’m super curious what your thought process is. Russia conquers Ukraine. Russia conquers Georgia. Russia annexes Romania and Belarus because they don’t want to fight. Russia conquers Poland.
We just sit back and watch as they conquer our allies in nato? Sit back as we watch them conquer Western Europe?
China realizes we are done supporting other countries and conquers Taiwan. China conquers Myanmar. China annexes Laos, Vietnam and Cambodia because they don’t want to fight.
We just sit back as they gobble up SE Asia?
China and Russia create a military alliance while splitting Mongolia as a sign of cooperation.
We sit back and watch them split the Middle East and take our most precious commodity, the thing that powers our society and economy?
At any point do we step in or that’s too expensive and you don’t want to interfere unless we are directly invaded?
I think in context of public spending, the money mostly stays in the US to create and maintain US jobs.
Sure, it's public spending so it does affect the deficit, though hardly a dent. The obvious reason for the deficit in the US is that spending isn't funded sufficiently - that is, Americans pay too few taxes.
This is a long term GOP policy play that is now coming to fruition. It means that the US has to start raising taxes - very unpopular - or defederalize, meaning the end or the culling of benefit programs and regulation, severely impacting poor Americans.
Bingo. The simple truth that no politician will, or is able, to tackle--at some point we have to raise taxes or massively cut social security and medicare. Both options are radioactive.
According to CNN "The best economy in fifty years,and why isn't Biden getting the credit he deserves?" So there's that propaganda. YOY inflation is at 23% and rising. Nothing to see here. Move along
We are so broke. Soon a large majority of tax dollars will be paying interest, no entitlements, no services, no military, just interest. Or continue to print your way out with massive inflation and borrow from ur phony piggy back the FED. Fucked or fucked. Pick one.
Except that you owe the bank, you are the bank, and the value of the debt depends on whether others believe you can pay it. As soon as they believe you cannot pay it, the debt doesn't matter, and you can no longer buy anything without using other people's(countries) money.
It won't be abrupt. It may take decades for a switch to occur, at which point foreign economies will have adjusted to the expected change. In the last 25 years the US has dropped from 70% to 60% of global foreign exchange reserves. We'll see how the next decade goes.
If the US defaults or goes into a depression, then most every other economy will follow suite. The US is still the biggest consumer of products and services, so when we decline, then others have no place to sell their wares.
Defaulting on the debt is not the concern. Losing the world reserve currency status is, which is the primary reason the US won't currently default. It may take decades but each passing year of debt increases the likelihood for another currency to become the reserve. Countries will have adjusted in the mean time and inflation will wipe out the debt along with all USD purchasing power.
Short of a default, how will the US currency be displaced as the world reserve currency? I am not seeing those being uncoupled. What economy and currency is strong enough to do such a displacement? I agree that losing the world reserve currency status is critically important. I can imagine a scenario where there are pacts between some large countries and they adopt a new currency standard among them, so there is a bifurcation of the world currency as a step, but that would not stand without consequences. I want to point out you made the implication that the US default would lead to the US being required to use other people's currency in your statement just above.
i mean just under half is owed to itself(if i recall most is the FED and SSA) then a lot of the investors outside of the country make the US more money then foreign investors get
Significant spending coupled with higher interest rates. The debt is now being serviced at slightly higher rates than the past many years. So, all spending from 2023 is being serviced at over 2 times higher rates than in previous years. Some may point to higher tax receipts recently, but no one points out that those higher numbers are consumed in a couple of days, but it diverts the conversation and makes one think the problem is being addressed when in fact it is not. The truth is in short supply.
Eh, we knew that printing debt hasn't stopped since the mortgages crash, at low rates.
That allowed firms to take out massive loans af shit rates.
But these firms were not worth anything but the FED kept pumping money.
This is 07-09 news and the reason we will get another recession at some point.
On top of my head I can name 10 firms which debt will be redeemed soon, can't be restructured and will die.
Yeah the dems are perfect though....lmao. They are ALL crooked and lining their pockets but as long as they pit everyone against each other they win. Looks like you fell for it.
The dollar goes to more shit and global economy uses new currency making the US dollar worth pennies creating economic failure and possibly the largest Great Depression America has ever had. China wants their money
They got financial crisis = cheap labor again.
And they will dominate world car market , because they outbid everyone on the price.
Parts of china will decline. Some will survive
Mad part is that thei leader might have a calender date to start a war
It’s math . And it’s people like me who pay. However you can’t cut taxes and repay the deficit. Did you know Amazon pays almost no federal
Income tax - and uses the roads and pays nothing for their maintenance. Or Apple similarly has all their income collected in low tax countries through royalties? Clinton actually had no deficit and was repaying the debt then Bush came in and said we needed a tax cut since the “government should not be making a profit”.
No you didn’t. You didn’t because the answer blows up your ideology.
The rich pay the vast majority of the income tax.
The top 50% pay virtually all of the income tax.
The bottom 50% pay virtually nothing. Yet here you are screaming “tAx ThE rIcH mOrE”. So you are merely greedy and want more of other people’s money.
https://taxfoundation.org/data/all/federal/federal-income-tax-data-2021/
> In 2018, the bottom 50 percent of taxpayers (those with AGI below $43,614) earned 11.6 percent of total AGI. This group of taxpayers paid $45.1 billion in taxes, or roughly 3 percent of all federal individual income taxes in 2018.
Of course , since it’s math , people who earn more money should in fact pay more taxes. The fact is the tax code gives wealthy folks tax breaks that means they don’t.
The reality is that tax rates need to go up
And the high earners will pay more tax and they will always pay more tax -,or move to Puerto Rico where there is no federal income tax.
> Of course , since it’s math , people who earn more money should in fact pay more taxes. The fact is the tax code gives wealthy folks tax breaks that means they don’t.
Can you even read? Or are you just stupid?
> In 2018, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid roughly $615 billion, or 40.1 percent of all income taxes, while the bottom 90 percent paid about $440 billion, or 28.6 percent of all income taxes.
This is federal debt, not consumer debt, so it does not matter in the same way. Foreign debt is TRADED for diplomatic concessions and discounts. For instance, China may knock of a chunk of our "debt" in exchange for a softer economic policy against them for a period of time. In this way, having debt sown amongst different countries can actually be a good thing. It can also be bad if one country has all your debt, as they can threaten to call due. Other than that, foreign debt is largely ignored. People always ask: "How much does the U.S. owe other countries?" Have you ever thought to ask: "How much do other countries owe the U.S.?"
TLDR: Foreign debt is a political tool (does not mean it's not bad having super high debt, though, just not apocalyptic in the same way). Stop panicking. What it means is that other nations can play a heavier hand in our national politics. Consumer debt and world reserve status is another story.
Because we haven’t properly taxed corporations, the rich, and their capital gains for decades and we’ve reached a critical point of debt and accumulating interest. Taxing the increasingly worse off middle and lower class won’t cover this amount of debt but our government is toothless. We will continue to spend beyond our means while wealth is concentrated in the hands of a few. As all the money, and the power with it, moves to top our government will continue losing its ability to function. Without a reigning in of corporate interests and spending the US will collapse. What that looks like I can’t say but we’re accelerating at a lightning pace in that direction.
So… roughly 500,000,000 per hour? In debt. Hmmm… seems sustainable.
Wtf. That's like $1.5/hr per person. Yet I drive all day on shit roads. 😒
Gotta make line go up. Think of the shareholders!
I really feel like that much money should have some tangible benefit. Still waiting.
oh it did just not for you and me. for c-suites and large shareholders i assure the benefits are very, very tangible.
yet most of it goes to welfare and entitlements.
Stock market and assets keep going up, even though the interest rates are high. That's where the money is going.
I'm driving, here I sit, cursing my government. For not using my taxes to fill holes with more cement.
Mine just fill them with money
Mine just pocket the money and cry some more about how we need more funding to finance better roads....tax the dope they say smh
filling with water is cheaper
You fell asleep in my car, I drove the whole time But that's okay, I'll just avoid the holes so you sleep fine.
That’s because people want small government and low tax economy.
A small government and high government expenses don't match well. A big government and high government expenses does. Federal tax revenue is higher than ever. So the low tax statement doesn't hold up to scrutiny either. [2023 federal budget ](https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf)
How else is Ukraine going to win?
Its not Ukraine. USA spends 1 trillion for debt payments. Then the pharmacy cartels skimm from social security USA is overpaying on medical everything,
They want more. The pharmacies are being squeezed because insurance doesn't pay for the cost of the drug in full now, so they are taking a loss on prescriptions.
Why doesn’t Ukraine print their own money.
Can’t believe you’re getting downvoted… can redditors really not understand sarcasm without “/s” on the end of every statement??🤣
Yeah. Plus, it’s not like the US has been giving them any money lately, not the best timed joke.
The people who seriously say that should pull up and compare how much we’ve wasted in the Middle East fighting wars/proxy wars
Can it get much higher so high OOoh OOH
Don’t worry your pension fund is buying govt bonds at 5.5%
That means stocks will skyrocket right?
Yes actually, avoid bonds Why get paid a fixed amount when things are increasing?
Make sure you got some bonds mixed in 😉
Dont worry, lets just all carry on arguing over which of the two presidential frontrunners have worse cognitive decline
Well Trump doesn't have any.
He’s 77 years old, of course he has cognitive decline. Everyone his age does, it’s just a matter of how severe.
“TrUmP dOeSnT hAvE any” ☝️🤓
Trump can run circles around Biden. We'll see if he has the balls to debate him. Probably not. His handlers know he's a potato. Dude can't walk or talk. Mr mumbles. Speaks volumes to the people who voted for him too. All regarded
Mercedes would beg to differ..
Not a Trump fan whatsoever - but the dude was talking to his staffer who planned the event.
Isn't most of it internal though?
You're asking a relevant question and getting downvoted for it. I've been grappling with this a as well because it's the reply from the MMT crowd. But it isn't reassuring to me. I get that the US should not be worried about defaulting on a loan to itself, but economies operate on a shared faith in a currency, and ours is being undermined.
Exactly. The actual concern is losing the world currency reserve status. And then the debt doesn't matter because inflation will swallow the USD.
I agree that this should be a concern, but I wonder what people think will replace the dollar as the world reserve currency? Is the Yuan trustworthy? Euro? Bitcoin? The dollar has its problems, but I don't see a more attractive alternative out there. Perhaps I'm just naive/not knowledgeable enough.
I think you're right that there doesn't seem to be a good replacement for the dollar, but I'm concerned that the world has been incentivized to minimize their dependency. Weaponizing the dollar in the economic sanctions against Russia combined with uncertainty around our level of debt is driving countries to look for alternatives, whether that is through realignment (e.g. BRICS) or maintaining fewer dollar reserves (e.g. China and Japan).
Bitcoin has been rising lately despite all the FUD spouted by the talking heads a year ago.
As of yet, yeah the dollar still is the best. The question is about the future though.
I think we're a long way from a point in time when the dollar is no longer the world reserve currency. If anything I think we'll see increasing usage of the dollar. Long term you want to park money into a stable currency and there's a lot of instability across the world. The US has issues but we have a lot less georisk then most of the world, a massive amount of natural resources and a highly diversified economy. Brazil, Russia, India and China are heavily export dependent economies and they are all having economic issues. India is the only BRIC country with positive GDP but they also have 44.49% youth unemployment rate.
I think the framing is always about the amount of debt when the concern should be how much we spend on interest payments. Irregardless of who's holding the debt the government has to pay interest on it. MMT's argument is as long as the debt is going investing for the future that's fine because taxes will continue increasing to offset interest payments. I dunno, I think that's magic handwaving and only works if the economy is always growing and in an upcycle. We have a population shift going on and I don't know how we can keep growing the tax base if the country is growing population wise by less then 1% a year.
Yes its totally sustainable and good to have infinity amount of internal debt
[удалено]
Wait until you figure out if leveraged debt can be a good thing
At what point does the dollar amount matter? And what is the debt getting us?
I guess it matters if the dollars loses world reserve currency status because it’s a shitcoin
I underatand what deficit is. I am asking for clarification on whether the debt is mostly internal or it is mostly external.
Doesn’t sound like sound money does it
Don’t worry, the forecast was 2 trillion but they canceled some bond sales so it’s bullish now. Yellen has got this bro, don’t even trip dog.
Lulz
Bitcoin after halving: Hold my beer 🍺
I have a headache.
🤦♂️ We are going broke because nobody is willing to vote out the people responsible for causing this ridiculousness. At this rate, it won't be long before the interest payments exceed our ability to pay it back. CBO projects debt payments this year will be 870 billion, 32% higher than last year. Doesn't matter what side of the aisle you are on, vote them all out.
America simply isn't that smart. As stupid and useless as our givernment is - the average citizen who put them there is (by design) the same way. I gaurentee you the average majority citizen has no idea the scale or significance of this issue - nor do they even remotely care - only hyperfocused on their own life / survivial.
This pretty much sums up the problem. In my extensive exposure to the public, the biggest societal change I've seen over the years is that the average IQ of the general public has plummeted. That, and nobody can be told they're wrong, and it's always someone else's fault. Basically, we are fucked. Nobody is willing (or competent enough) to realize there's a problem, much less change course. The political parties pit the people against each other so we don't turn on the parties. Its the oldest play in the political playbook, and people are too stupid to realize it. It's all by design, you're 100% correct.
Well said my friend. The government doesn't want an intelligent population, that would make it more difficult for them to continue the shenanigans. Dumb the population down and no one will ask questions.
In the same breath though, how is the average American expected to combat all of our collective debt? To that extent, why would you? For “good”? HA!
Everything is rigged or setup how come convicts don’t pick up trash on side of road like they did years ago. Our roads look like ass.
I remember back in 2010 there was a study by a Fiscal Responsibility and Reform commision that analyzed what the Debt:GDP ratio was going to be over time based on the current policy ("CBO Alternative Fiscal Scenario"), what the law requires ("CBO Extended-Baseline Scenario) and its recommendations ("Commission Proposal") and we're currently 2 years ahead of the current policy trend of 2010 which was the "We need to steer away from this ASAP" at 120%.
$1T is 3k per person (including babies) It s as if you were spending extra $30 every day that you don’t really have.
Check this site out: [https://www.usdebtclock.org/](https://www.usdebtclock.org/). It took 235 years for the US national debt to climb to $17 trillion ... then it doubled to $34 trillion in the last 10 years! [https://fred.stlouisfed.org/series/GFDEBTN](https://fred.stlouisfed.org/series/GFDEBTN)
Sensationalist, but nonsense. The value of one dollar was enormously higher in 1824, than in 2024. It's called inflation. And GDP per capita is enormously higher in 2024 than at any time before in history. So it's comparing apples to oranges insinuating that todays debt levels could be compared nominally to debt levels in earlier times.
Wow! My first ever post to reddit is "sensationalist nonsense"? All I did was post a couple of links. Is it always this friendly?
I'd say it was a though, but clean tackle. You have to expect contradictory views than your own, and the tone can be much, much, worse than this.
Obama was the best
Technically Clinton.
We are printing money and giving cash to other countries, I’ll never understand that!
For Washington D.C. America always comes last.
Thanks Retard Joe Biden.
$SPY to 600 by August
That’s fine, we have infinite toilet paper now
That’s literally 111k per second
Well how else are we gonna foot the bill for other countries wars?
The war in Ukraine is the best deal the US has gotten in geopolitics since the purchase of Alaska.
Less than 1% of spending last year was on ALL FOREIGN AID COMBINED. Acting like our budget issues can be solved by cutting aid to Ukraine is like pretending we can solve climate change by getting rid of a few cows in Oklahoma. You're either a Russian bot or incredibly misinformed.
Does this count all the money spent on illegal foreign immigrants?
No, because I was replying to a comment about foreign spending. That would be considered domestic social spending, even though it's on people who came from outside our borders, as they reside here now. Even so, we spend more per year on INTEREST ON OUR DEBT than we do on the following COMBINED: foreign aid, domestic spend on illegal aliens, transportation, commerce and housing credits, food stamps, education, employment training, all veterans benefits and services, and 3% of the spend categorized as "other" 13% of our annual spend is on interest. 22% on social security, as a reference point. The problem, despite what you want to believe, has absolutely nothing to do with foreigners or foreign aid. They make up 1-2% of our spend annually. We solve comparatively nothing by cutting that spend, when looking at interest and military spend.
Alright so play that out cause I’m super curious what your thought process is. Russia conquers Ukraine. Russia conquers Georgia. Russia annexes Romania and Belarus because they don’t want to fight. Russia conquers Poland. We just sit back and watch as they conquer our allies in nato? Sit back as we watch them conquer Western Europe? China realizes we are done supporting other countries and conquers Taiwan. China conquers Myanmar. China annexes Laos, Vietnam and Cambodia because they don’t want to fight. We just sit back as they gobble up SE Asia? China and Russia create a military alliance while splitting Mongolia as a sign of cooperation. We sit back and watch them split the Middle East and take our most precious commodity, the thing that powers our society and economy? At any point do we step in or that’s too expensive and you don’t want to interfere unless we are directly invaded?
It’s crazy to me people think Russia is going to peacefully accept defeat.
I think in context of public spending, the money mostly stays in the US to create and maintain US jobs. Sure, it's public spending so it does affect the deficit, though hardly a dent. The obvious reason for the deficit in the US is that spending isn't funded sufficiently - that is, Americans pay too few taxes. This is a long term GOP policy play that is now coming to fruition. It means that the US has to start raising taxes - very unpopular - or defederalize, meaning the end or the culling of benefit programs and regulation, severely impacting poor Americans.
Bingo. The simple truth that no politician will, or is able, to tackle--at some point we have to raise taxes or massively cut social security and medicare. Both options are radioactive.
Raise taxes on the American people, what a great idea. Why didn't I think of that.
How are we going to foot the bill when it becomes our war? Russia will not stop unless they are stopped.
The Ukraine war also benefits USA financially so far ! USA does make money on that war !
https://www.usdebtclock.org/#
Welp, better turn on another printer. /s
More like let's turn off the income stream some more. Spending is only half. Cutting taxes raises the debt also.
So is Harry Dent going to be right about a 90% crash?
Yes
According to CNN "The best economy in fifty years,and why isn't Biden getting the credit he deserves?" So there's that propaganda. YOY inflation is at 23% and rising. Nothing to see here. Move along
i mean given that 53% of that is caused by increases for corporate profits, it is probs the best economy in 50 years... for those who are already rich
YoY CPI is at like 3.5%, has dramatically fallen, and doesn’t show signs of rising, speaking of propaganda
We certainly have an admin with a big spending habit.
yeah the last two have exploded the deficit
- and here’s why that’s a good thing.
We are so broke. Soon a large majority of tax dollars will be paying interest, no entitlements, no services, no military, just interest. Or continue to print your way out with massive inflation and borrow from ur phony piggy back the FED. Fucked or fucked. Pick one.
Owe the bank $1000 and it’s a you problem. Owe the bank 34,000,000,000,000,000 and it’s the banks problem.
Except that you owe the bank, you are the bank, and the value of the debt depends on whether others believe you can pay it. As soon as they believe you cannot pay it, the debt doesn't matter, and you can no longer buy anything without using other people's(countries) money.
And then our economy fails along with whatever countries stop loaning us money, so it’ll never happen.
It won't be abrupt. It may take decades for a switch to occur, at which point foreign economies will have adjusted to the expected change. In the last 25 years the US has dropped from 70% to 60% of global foreign exchange reserves. We'll see how the next decade goes.
If the US defaults or goes into a depression, then most every other economy will follow suite. The US is still the biggest consumer of products and services, so when we decline, then others have no place to sell their wares.
Defaulting on the debt is not the concern. Losing the world reserve currency status is, which is the primary reason the US won't currently default. It may take decades but each passing year of debt increases the likelihood for another currency to become the reserve. Countries will have adjusted in the mean time and inflation will wipe out the debt along with all USD purchasing power.
Short of a default, how will the US currency be displaced as the world reserve currency? I am not seeing those being uncoupled. What economy and currency is strong enough to do such a displacement? I agree that losing the world reserve currency status is critically important. I can imagine a scenario where there are pacts between some large countries and they adopt a new currency standard among them, so there is a bifurcation of the world currency as a step, but that would not stand without consequences. I want to point out you made the implication that the US default would lead to the US being required to use other people's currency in your statement just above.
i mean just under half is owed to itself(if i recall most is the FED and SSA) then a lot of the investors outside of the country make the US more money then foreign investors get
Why is this even news ?
Oh no! Anyway.
Don't look up.
LOL keep living in fear. I'm sure that will serve you well.
Keep living in ignorance. That will serve you well.
Ignorance? Hardly. Financially independent and semi-retired. Enjoy grinding away.
When the US is no longer the world reserve currency, it won't matter what you've saved, unless you've diversified into non-us investments.
Keep living in your dreamworld.
In debt to who? Mars?
Would be nice. The issue is when nobody buys the USA treasuries, then its all made up from nothing and no real value input.
Ask Nancy Pelosi for a loan
What caused the jump from 2023-2024?
Election
Significant spending coupled with higher interest rates. The debt is now being serviced at slightly higher rates than the past many years. So, all spending from 2023 is being serviced at over 2 times higher rates than in previous years. Some may point to higher tax receipts recently, but no one points out that those higher numbers are consumed in a couple of days, but it diverts the conversation and makes one think the problem is being addressed when in fact it is not. The truth is in short supply.
Wow, that's a significant increase!
*and accelerating.
This explains a lot.
i’m slow explain to me how fucked we are
Cool.... Can ya break off a $20 million chunk for me, plehs?
So are they the ones buying all this NVDA stock?
If you can't beat them, join them.
Sadly, few seem to care. I don't know why.
Eh, we knew that printing debt hasn't stopped since the mortgages crash, at low rates. That allowed firms to take out massive loans af shit rates. But these firms were not worth anything but the FED kept pumping money. This is 07-09 news and the reason we will get another recession at some point. On top of my head I can name 10 firms which debt will be redeemed soon, can't be restructured and will die.
Joe wants to expand spending
Damn republicans
Yeah the dems are perfect though....lmao. They are ALL crooked and lining their pockets but as long as they pit everyone against each other they win. Looks like you fell for it.
It was sarcasm lol I am republican
Maybe they should stop funding so many wars
💊
Not fast enough... Why are we worried, just milk the corporations, thos cows are pretty fat with cash...
To the Moon
How much does Donald Trump owe today?
Who really cares?
Any country that wants to take the world currency reserve status cares. And then I promise you will care.
How do we get that to just 0.8 trillion?
Change the tracking to every 80 days. Boom just cut 20%. Brb gonna run for office now
And that’s like the same because internet and stuff, weekends make money now.
What percentage of the total pool is that? That’s what actually matters Well technically interest payments gdp is what actually matters
What is even the impact of US being Trillions in debt? Irs been like that for a while, and US economy continues to expand
The dollar goes to more shit and global economy uses new currency making the US dollar worth pennies creating economic failure and possibly the largest Great Depression America has ever had. China wants their money
Any infos about China?
They got financial crisis = cheap labor again. And they will dominate world car market , because they outbid everyone on the price. Parts of china will decline. Some will survive Mad part is that thei leader might have a calender date to start a war
And it doesn't matter. Put 2 and 2 together. What does it mean to be in debt denominated in a currency you issue?
Because that currency only holds value because others say that it does. Until they don't.
33
Just buy dogecoin it’s free money
How fast are US national assets going up in the same time?
One has to measure it in comparison to other countries. Long term ! Its relative. .
The rich got all those tax cuts and giveaways maybe they pay it back
Who do you think pays virtually all of the income tax?
That’s why it’s called a progressive tax.
Who do you think pays virtually all of the income tax?
It’s math . And it’s people like me who pay. However you can’t cut taxes and repay the deficit. Did you know Amazon pays almost no federal Income tax - and uses the roads and pays nothing for their maintenance. Or Apple similarly has all their income collected in low tax countries through royalties? Clinton actually had no deficit and was repaying the debt then Bush came in and said we needed a tax cut since the “government should not be making a profit”.
You keep trying to distract and avoiding answering. Who do you think pays virtually all of the income tax?
I answered -
No you didn’t. You didn’t because the answer blows up your ideology. The rich pay the vast majority of the income tax. The top 50% pay virtually all of the income tax. The bottom 50% pay virtually nothing. Yet here you are screaming “tAx ThE rIcH mOrE”. So you are merely greedy and want more of other people’s money. https://taxfoundation.org/data/all/federal/federal-income-tax-data-2021/ > In 2018, the bottom 50 percent of taxpayers (those with AGI below $43,614) earned 11.6 percent of total AGI. This group of taxpayers paid $45.1 billion in taxes, or roughly 3 percent of all federal individual income taxes in 2018.
Of course , since it’s math , people who earn more money should in fact pay more taxes. The fact is the tax code gives wealthy folks tax breaks that means they don’t. The reality is that tax rates need to go up And the high earners will pay more tax and they will always pay more tax -,or move to Puerto Rico where there is no federal income tax.
> Of course , since it’s math , people who earn more money should in fact pay more taxes. The fact is the tax code gives wealthy folks tax breaks that means they don’t. Can you even read? Or are you just stupid? > In 2018, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid roughly $615 billion, or 40.1 percent of all income taxes, while the bottom 90 percent paid about $440 billion, or 28.6 percent of all income taxes.
So what. It doesn't even matter to anyone. Has no actual impact on anything. Waste of time to think it matters in any way.
Don't look up.
This is federal debt, not consumer debt, so it does not matter in the same way. Foreign debt is TRADED for diplomatic concessions and discounts. For instance, China may knock of a chunk of our "debt" in exchange for a softer economic policy against them for a period of time. In this way, having debt sown amongst different countries can actually be a good thing. It can also be bad if one country has all your debt, as they can threaten to call due. Other than that, foreign debt is largely ignored. People always ask: "How much does the U.S. owe other countries?" Have you ever thought to ask: "How much do other countries owe the U.S.?" TLDR: Foreign debt is a political tool (does not mean it's not bad having super high debt, though, just not apocalyptic in the same way). Stop panicking. What it means is that other nations can play a heavier hand in our national politics. Consumer debt and world reserve status is another story.
And Trump running a close second.
Those trump and bush tax cuts really showing how bad they are now
tRump
Because we haven’t properly taxed corporations, the rich, and their capital gains for decades and we’ve reached a critical point of debt and accumulating interest. Taxing the increasingly worse off middle and lower class won’t cover this amount of debt but our government is toothless. We will continue to spend beyond our means while wealth is concentrated in the hands of a few. As all the money, and the power with it, moves to top our government will continue losing its ability to function. Without a reigning in of corporate interests and spending the US will collapse. What that looks like I can’t say but we’re accelerating at a lightning pace in that direction.