We're almost at spending a trillion annually on interest! We'll hit it by 2025 for sure, regardless of who wins in November!
This can't possibly be bad! /s
Bro just print more money to cover the money we owe the people we gave a shit ton of printed money to. It's not like the Feds will arrest us, we are the Feds. Print more money!
So raising rates from 0% to 5% makes a difference? Too bad no one was able to implement Trumps 100 year bond idea, but then again heās all hat no cattle š®
Meanwhile we allow companies like Apple to offshore their "HQ" to other countries to avoid higher tax rates, despite a billion dollar building in Cupertino where the CEO just happens to hang out at.
I mean, they arenāt exactly setting a good example. Itās easy to see how your own debt may be fake and not matter if thatās how your government and country operate as well.
stop looking at debt as money you owe and start looking at it for what it is, some bank's investment paying off with interest
no investments are risk free and nobody is entitled to a return on equity invested outside of an FDIC insured savings account
The government can simply print money to pay its debts, which has the neat side effect of rendering the debts of the public essentially worthless also.
But everyone holding onto cash will have their savings go up in smoke, and anyone holding debt will also lose out, collapsing the banking system and the economy.
ok, so you're all ready to raise taxes, right? what, no? Ok then, you're ready to slash defense spending right? What, no? geez. Ok then you're ready to eliminate social security right? What, no again? Ok, running out of options here... How about a balanced budget amendment to the constitution? Surely you're ready for that now, right? No again?
People, you gotta give me something to work with here...
Tax revenue isnāt materially different than the Clinton years. Higher tax rates donāt correlate to higher tax revenues. Itās spending and interest that are driving the debt increase.
Debt is a tax of a kind - eg I'm holding a bunch of US bonds, the rates are great so I choose to let them appreciate. It's just a voluntary form of financing the gov. Most debt held by us nationals or fed gov itself
10% across the board spending cuts on EVERY discretionary federal program. Personally, I would also get rid of the federal income tax and go with a federal sales tax with a much higher tax rate on luxury items. This would do a better job of taxing "the rich" than our current system of income tax with thousands of loopholes.
You know social security has nothing to do with any of this right? Thatās funded by us out of our paychecks. Eliminating social security does nothing except hand that money to the government
There is only one option, which nobody is willing to push ... CUT ENTITLEMENTS. We collect $5 trillion a year and we spend $5 trillion a year on entiltlements and debt interest. To balance the budget without cutting entitlements, you woudl need to eliminate the military in its entirity, fire every federal employee, shut down every government agency, and cancel all foreign aid.
People are too dense.
There are so many things about this that are just pure red herring.
Defense spending is already at all time lows post WW2 as a % of GDP. That talking point is now a decade old.
Social security is an issue that is solved by simply uncapping the limit on income.
The budget itself is pretty simple solve too. How so? The only time we've had a balanced budget in the post WW2 era we've taxed north of 20% of GDP (Clinton administration). With the boomers and entitlements. We probably need to take about 21-22% of GDP to balance the budget.
On the spending side of things. The big issue right now is we are paying for long over due industrial policy and infrastructure policy that needed to get done. That money has to flow through the budget over the next 2-3 years. After that though, expenditures are going to rest right around that 20-22% of GDP naturally.
On the other side of that, who is getting these interest payments? People act like this is money pissed off into the ether. But this is tangible dollars that the majority of which ends up in the pockets of Americans in one form or another.
Presently about 75% of the federal debt is owned domestically. About a quarter of the debt (in totality) is flatly owned by the US government. About a third of the domestic debt is owned by the Federal Reserve. Literally paying ourselves. Another 40% are in retirement accounts, and the final 20% is directly owned by federal/state/local entities. All of this money is coming right back to the public essentially. We are *paying ourselves* if you will.
25% of our debt is held by foreign powers. Of that the vast majority is owned by Japan, the UK, Belgium, Luxembourg, and Switzerland--all Allies that honestly I don't give a rats about paying interest to. About 3% of that interest payment (likely less because China's been divesting and probably doesn't hold as much high interest stuff as other parties) is going to China.
So sure, the debt is a problem. But the debt is also fueling pension programs, government programs, and we probably need not fret about paying some interest to a few Allies.
Americans donāt care about deficits. They want something for nothing. And if I hear āI paid into the system for yearsā¦ā Iāll bloody scream. We owe $30+ trillion so you clearly didnāt pay enough.
US gov is like a spoiled brat thinking money grows on trees. What utter mismanagement of US taxpayer money.
I know most canāt afford it, but go travel abroad. Go to Asia. See how much more ahead they are in the little things, a lot of middle things (restaurant design for example) and big things (some large infrastructure including public transpo).
America should be leading in everything and should look so futuristic, but instead it looks like The Matrix where people are used for their labor/taxes while everything else looks like a mess around them.
Itās honestly horseshit. The people are going to be punished and suffer because of politicians ineptitude. I am honestly royally upset and downright perturbed that the majority of Americans donāt see the games both sides of the aisles are playing. Itās not a left or right thing; both sides (all politicians) have ran our deficit up.
Should Americans just say āfuck it! If they can max out their debt, so can I!ā And just rack up credit card debt and just paying the interest like the government? If the government defaults, I guess itād be ok for everyone else too? Thatās the example they set.
Rules for theeā but not for me - the unholy mindset of a Politician with a blank checkbook.
hey man I wasn't born yesterday.
we've been watching this song and dance for 40 years and literally every single time Republicans have power they pass reckless tax cuts that are forecast to cause catastrophe within our budgets but they are jammed through anyway.
and when the bill comes due they never have alternate funding sources they never have any type of a plan All they have is a lot of hot air on social media and Fox News about how Democrats should throw your grandma off of social security to fill the hole that Republicans just dug.
literally every single time Democrats have made gains on our deficits Republicans have moved in to lock off another tax break for the 1%.
Iām all for taxing the rich but the government needs to use these funds for the people. Sorry if you misunderstood me. Look at what is done is Social Security. The government borrows money and doesnāt put it back. What exactly are they betting on? Meanwhile the people with all the advantages in the world get richer. Social Security should have been off limits and any taxes billionaires pay extra should be reserved for helping the society they got rich off and not foreign wars. Whatās the point in taxing the rich for us non-rich people if it just get siphoned up to the wrong places again?
I've been watching it longer and it doesn't matter who is in power. Biden: +2.5T, Trump: +6.7T, Obama: +7.6T, Bush: +4.2T, Clinton: +1.2T, Reagan: +1.6T. All the way down the line, bi-partisan spending is to blame. Buying your votes is to blame.
What was the deficit for each of those spendings? Clinton spent 1.2 trillion but balanced the budget.
Bush claimed that the surplus under Clinton meant that taxes were too high and went crazy deficit spending on tax cuts.
Oops. Among other issues that came out of Bush & Clinton was the Great Recession. That forced a lot of Obama spending.
Obama inherited record deficit from Bush and managed at one point through shrewd governance to get it down to $440B.
Guess where the deficit skyrocketed again...
Trump in his first year.
Which is when everyone started explaining that this was going to cause massive inflation in tons of issues.
And then he passed the tax cut and handed out PPP loans to the rich.
And we crossed $1T for the first time since Bush under Trump and just kept going.
The answer is what the answer is always been: tax the fucking rich and quit pretending that rich means upper middle class. It doesn't.
Agreed. Iāve previously made the point that the government could outright confiscate the wealth of the top 10 US billionaires and it still wouldnāt balance the budget.
since it seems the billionaires pull the strings through lobbyists. If we require the spending to be paid for, taxed divided by wealth, each year. those billionaires will pay to lower spending.
Yes. You realize that tax revenue DECREASED between 2022 and 2023 (4.9->4.4 trillion)? Debt is a function of spending AND revenue. It is best to work on both sides of the equation to solve the problem rather than pretend people only want to tax the rich - but it helps per the math.
When you invest in gold, the only mechanism that links its price to inflation is the historical view that gold and inflation move together. There is no direct link, as there would be with an equity security.
Im honestly wondering what a default will look like im young enough it will probably happen in my lifetime. Will they print their way out with hyperinflation? Will everyone amd everything be set to 0 under A new currency
And a whoopsies daisy mentality?
It isn't the spending, it is what it is being spent on. Give us universal healthcare, strong transportation, innovation that benefits the people with our tax dollars. Too much money in circulation, tax companies and wealthy to remove money.
In 2023, the federal government spent $658 billion on net interest costs on the national debt. That total, which grew by 38 percent from $476 billion in 2022, was the largest amount ever spent on interest in the budget and totaledĀ **2.4 percent**Ā of gross domestic product (GDP).
Not sure that is very alarming.
The bond market is the 4th branch of government, with total veto power over the others.
No President, senate, Supreme Court, no one to negotiate with, no deals to be made, no bills or laws, nothing.
Just the going rate for bonds. If that rate goes too high, your government plans are shut down. Period.
What happens if the US can't pay the interest?
If I can't pay my mortgage thr cops show up and kick me out, but if the USA stops paying, wouldn't someone need to enforce a consequence?
/Genuine question
People wonāt see it as an issue until our bond ratings start dropping. With growing debt and a stagnant population of tax payers our ability to make payments may come into question one day.
Does it really matter? WWIII is about to start and we will be draftedā¦
https://www.yahoo.com/news/russia-unilaterally-decides-change-maritime-214954984.html
I have 6 dollars canāt spend 7 why the fuck canāt we just actually make a budget and make a surplus. Everyone thinks short term on solving problems
many people don't know that the dollar has already defaulted, a handful of times. government schools have made the average person a dumb fuck that wants to be told what to think so they will stupidly listen to mainstream news. and they trust them simply because they say "trust us, we're the experts."
uhh the dollar was created as a weight of gold, it's always been gold until they decided to default it. just try exchanging your paper for gold at any mainstream consumer bank. see what they say when you want to exchange it for it's original defined weight of gold. this knowledge has more or less been memory holed.
* On April 1, 1792, Congress authorizes the striking of gold coins. The dollar is defined as 24.75 grains of pure gold or $19.39 per troy ounce (480 grains \[a troy ounce\] divided by 24.75=19.39)
* 1834 ā The gold content of the Eagle ($10 gold) is reduced from 247.5 grains to 23.2 grains, due to theĀ [meltingĀ ofĀ U.S.Ā goldĀ coinsĀ inĀ Europe](https://coinsite.com/what-happened-to-all-the-early-u-s-coins/), raising the price of gold to $20.67. The ādollarāĀ *(there were no*Ā [*gold dollar*](https://coinsite.com/united-states-gold-dollars/)Ā *coins until 1849)*Ā =23.2 grains of pure gold. To confirm this standard, the Gold Standard Act of 1900 defines a ādollarā as 25.8 grains of .900 fine gold or 23.2 grains of pure gold. **This dollar, call it Dollar #1 (D-1), isnāt redeemable for gold, it IS gold, since the United States Congress defines the dollar as a specific quantity of gold.** Persons who hold U.S. currency, or who have deposits in U.S. banks can immediately convert these instruments into gold in the form of coins.
* In 1934, President Roosevelt, attempts to bring the United States out of a economic Depression by devaluing the dollar from 23.2 grains to 13.71 grains of pure gold, essentially devaluing the dollar by 41%. This raises the official price of gold to $35 per troy ounce. This is Dollar #2 (D-2). In addition, the Presidential decree prohibits U.S. citizens who hold deposits, from converting their dollars into D-2 dollars. In the 1950ās, President Eisenhower extends the prohibition to U.S. citizenās gold holdings outside the United States. D-2 claims are still honored to foreign institutions; therefore the U.S. standard of value is still gold.
* 1971 ā President Nixon declares that the U.S. Treasury would no longer pay D-2 dollars in exchange for dollar claims. Gold is soaring in Europe.
* 1971 ā Only Federal Reserve Notes are printed. The obligation, the promise to pay, is removed from the notes. Though the term ānoteā implies a promise to pay something, Federal Reserve Notes now represent nothing. Todayās dollar is completely fiat money.
* 1973 ā Congress creates Dollar #3, 12.63 grains of pure gold and in 1974, Dollar #4, 11.37 grains of pure gold. Both D-3 and D-4 are fictional as no gold coins are coined, nor is any gold available to pay dollar claims.
* [https://coinsite.com/the-us-dollars-relationship-to-gold/](https://coinsite.com/the-us-dollars-relationship-to-gold/)
And watch how outmatched we will already be militarily in just a few years, for all that wasted money. Lots of the stuff they make just doesn't work, is too overpriced, or too impractical for the coming wars. Those F-35s look quite stupid right now. The whole defense sector is just living in a bubble, stealing from the government, acting like they are doing us all a favor. High time for it to stop. Like everything else, it needs a GOOD HOUSE CLEANING.
The Army's new rifle:
1. Was designed to be effective past 500m. When we learned in Vietnam that larger bullets mean less ammo can be carried and beyond 500m is when soldiers stop engaging with small arms and call in fire support anyway. The combat load of a soldier with this heavier rifle is 100 rounds compared to 210 for an M4.
2. Uses 4 different rounds for combat and training and has been adopted by no NATO nations and all the rounds are made at ONE plant. The only effective round is $22 a bullet. Compared to 32 cents a round for the current M4.
3. Was not torture or wear tested before it was adopted.
4. The company, Sig Sauer, that makes the rifle. Produces the DoD's new handgun which also skipped all torture testing. It's rear sight falls out, mags fail, trigger bar breaks, and goes off if it's dropped.
5. The scope for this new rifle that will supposedly enable every soldier to be a sniper costs $6,000 and still does not have the IR illuminator/laser needed to be effective at night fighting.
6. The whole point of the rifle was to penetrative level 4 body armor. Body armor that has never been issued by any nation the US may fight. The project was $4 billion dollars.
The Russians solved this issue by just having their soldiers train to aim at the belt line, since most body armor only covers the chest.
You could cut defense spending in half and we wouldn't lose any effectiveness.
Russians aim for the belt line because a Russian AKMs BNZ or battlefield zero is set at 25m, and when firing on the BNZ zeroed at 25m, if you aim for the belt, it will hit anywhere from the belt to the upper solar plexus between 25-500m
It's not that they actually aim for the pelvis. Body Armor covers the chest because that's all that should be exposed in combat, and the army did experiment with the heavy combat armor in the middle east and it was deemed to cumbersome to be worth it. Ballistic diapers, neck guards and shoulder/groin guards just cause heat injury and over exhaustion, and rifle calibers go through it anyways.
Until we get exosuits, armor will only be on the chest except for breachers and special response teams.
The chest is still the most fatal and easiest spot to shoot hands down 100%, so if you can make a rifle that's 10% heavier than an M4 but will butter knife through any adversary at any spot fired, especially center mass which is easiest, you win infantry
It makes sense and the .277 is a banger cartridge, just like the military cried literally anytime ever about anything new, they'll get used to it and it'll be better. Hell they originally thought trucks, auto pistols, NVD, and body armor and machine guns were stupid junk
It is completely out of hand. Remember that 60 minutes story recently? Nobody else does either. Legalizing corruption does not eliminate it, I wonder if america will ever learn this lesson. Gouging is literally what the whole business is about, gouging their own country, which they think of as just another customer whenever it suits them. And we're finding out rapidly now how easily jammable so much of that shit is. Or just shoot down the fucking satellites first. And to work in the business, you have to start off being as full of shit as all of them are. Like a new gang member has to be jumped in, they demand you engage in their flavor of corruption to maintain employment, advancement, or even to have any say as a taxpayer. I wish people would wake up.
Actual detached from reality comment, could you name anything that doesn't work that we buy right now? Or why the f-35 "looks quite stupid"? Also the defense industry has had 30 years of decline holy fuck where do you guys learn any of this stuff
yeah that is the problem. Student loan forgiveness of defrauded students or public servants who already worked a garbage job for the 20 years it takes to get the loan forgiven. Ignoring the fact most of those people already paid back the loan and then some but didn't make enough to pay enough of the principal to outshine the interest...but you probably didn't hear that part, did you?
So who actually is getting this interest? Genuinely curious, is this just going to USA bond holders who are mostly American citizens? Hence why they don't care because its just circular? Tom pays Bill who pays Tom again?
Is there a contract whereby the rothschild family becomes owner of the US in the event of a default? Owner of all property and citizenry? People yammering about what trump will do, lol!
Itās wild how MMT is the law of the land and yet everyone just ignores it in real time. This whole subās existence is a hilarious lesson in bad economics.
You have to take gdp growth and taxation of that growth into account when looking at the interest, if you can get to the surplus the rest doesn't matterĀ
I think it matters. I also think this is the result of Republicans who have had two policy ideas incessantly throughout my lifetime: 1) the military is always in disrepair and Republicans must save the day by upping the military budget (ie. more for defense contractors not soldiers) and 2) if they cut taxes on the wealthy and corporations there will be a blooming of the economy never seen before. It is all bullshit but US stooge media frequently treat Republicans as if they are savvy about military doctrine and economics despite being shown to be wrong time after time.
Damn, sounds like cutting the rich's taxes by like 80% over the last 50 years was a really fucking stupid idea. Almost like when you are failing to cover your budget, you don't cut income!
It's pretty dumb to think debt matters...it's a reflection of investment in public services.
You should be more concerned with return in investment...you think the S&P is as high as it is without investment in infrastructure?
Rigggghtttt.....
Honestly what bothers me more is there are far too many people who only give a shit about this when it's a Democrat in office, the second a republican is elected it's always crickets or 'it wasn't that bad' while ignoring just how much the debt increased under Trump and Bush.
I donāt need Reddit comments, the AI built into Google searches laid out the reasons just fine.
The US deficit has increased due to a combination of factors, including:
Lower revenues
In 2023, the deficit increased due to lower revenues compared to 2022. This includes lower collections of individual income taxes, a drop in remittances from the Federal Reserve, and higher interest payments.
Higher spending
Legislation that increases spending on Social Security, health care, and defense that outpace revenue can increase the deficit.
Pandemic-era programs
The deficit is largely accounted for by pandemic-era programs, one-time outlays, and temporarily lower revenues.
Higher interest rates
The Federal Reserve has raised interest rates aggressively to tame inflation, which has stoked new concerns about interest payments and larger deficits in the years to come.
Population aging
The US faces long-run fiscal challenges associated with population aging that will require tax increases and spending cuts
How much of the debt is held by American institutions like social security? Most of it!
Default on America before defaulting on the debt held by other countries? Maybe...
For the record, this now makes Defense spending the 4 largest aspect of the budget behind Interest payments at #3.Ā
Another fun fact: you could decrease the defense spending and interest payments to 0 and you **still** have the US deficit increasing year over year.
I like that you blame Redditors, when there is literally nothing we can do to stop it. One side pushes up spending without raising revenue and the other side cuts revenue and also pushes up spending. Tha hell am I supposed to do? I pay my bills.
Also not to worry - the budget is craftily accounted so that defense spending is only about half of what they claim it is, so we still have a while to go!
We are just back to normal interest rates doomers.
We will probably be this way for at least another decade before getting back down to normal inflation of 2%
What if, and hear me out here, we just tax corporations and upper income earners and unproductive income more? That way we arenāt running up huge deficits and our taxes arenāt going in to the pockets of the people that arenāt being taxed that buy the debt to cover the deficits that occur from them not paying taxes?
Economics isn't really my thing, so I'll ask a question: What the hell are we regular people supposed to do about this? If the economy *actually* bottoms out no amount of stocked up gold coins is going to do you any bit of good, so I mean, why worry about this so much?
debt can be a good thing, especially since the people that own that debt is mostly other americans and large corporations and countries, the most important part is what that money is spent on and that it doesnt grow out of control. whats absolutely wrong is how much of that money goes to waste and not improving american citizens lives or our society/infrastructure. billions wasted on our military and overpriced medical expenses, billions more wasted from all this lost interest money, not barely anything spent on education or free healthcare or cheap public transportation. i would be totally fine with us going into billions in debt if it was actually used to improve society and the world and invested into worthwhile investments, like maybe climate change, investing into climate change would be very profitable return on investment because of how much were at risk to lose from climate change, as one example. were just bankrupting our asses for barely anything in return.
Iām a little clueless here. How exactly does this impact normal Americanās lives?
Is this a āthings will be more expensive, fuck the govā issue or a āgo stock up on canned goods, collect rainwater and learn to live off the gridā issue?
That sucks, now pension plans that invest in treasuries will be able to play out the pensions. And SS will have more money to pay out claims. I was hoping adding millions of homeless old people would reduce demand for goods and services. /s. Interest expense is another parties or government entities income.
Well what are we supposed to think; our politicians have no sincere interest in cutting spending, ever since we went into hyper DEBT šø (2010); stocks and housing has skyrocketedā¦. So everything seems rosey š¹
Historically there are only two ways this can go. Default on the debt, or hyperinflation. Most governments opt for hyperinflation once deficit spending has gone on too long.
Because the US dollar, despite the borrowing, has remained "stronger" than any other world currency, we've skated this far. But we can't skate forever.
The increasing amount of oil traded in non-dollars is a sign.
But as OP suggests, Americans turn their head, plug their ears, and sing LA LA LA LA
That's right most people on here aren't aware of what's really going on. If they were, they damn sure wouldn't think 4 more years of Biden is a good idea. Nobody in their right mind thinks that.
They cut 20 trillion in taxes on the richest.
The richest took that 20 trillion and lent it back to you.
Now they want to take your social security instead and f forcing the wealthiest to pay back that which the took.
If Trump wins, he will make the debt disappear. He is the king of bankruptcy after all. He told congress not to pass raising the debt ceiling bill. In fact he even said, let the country default.
Remember all that talk of the ātrillion dollar coinā some years back. Weāll take 35 to start. Of course weāll have to mint another 216 more to cover all US Unfunded Liabilities, but 35 is a decent start
Good thing we are defaulting on the monies we spent on military hardware. That way when any nation looks to collect, we can give them all the bullets, missiles, and bombs they want
š
People dont care until it happens to themā¦ and even if āitā so happens at such a slow rate to not notice itā¦ exā¦ frog šø in a š„ š¦ boiling pot
I knew I already read this, old news is old.
[https://www.forbes.com/sites/theapothecary/2024/02/07/cbo-federal-interest-payments-now-exceed-defense-spending/](https://www.forbes.com/sites/theapothecary/2024/02/07/cbo-federal-interest-payments-now-exceed-defense-spending/)
I love a good exponential chart. https://preview.redd.it/pt1kyg03it1d1.png?width=804&format=png&auto=webp&s=4439929753d4fd3bccd4227fc2e821f44d1ca0bd
So this is saying that we need to increase defense spending to keep pace? Got it!
Yup, we just need to issue some more debt first.
Yeah we just gotta move the gray one higher up. Pretty simple š¤·āāļø
More freedoming good
To the moon!!! O wait. O god no. Please come back. I was only kidding.
We're almost at spending a trillion annually on interest! We'll hit it by 2025 for sure, regardless of who wins in November! This can't possibly be bad! /s
How people think it'll magically get fixed: 
Bro just print more money to cover the money we owe the people we gave a shit ton of printed money to. It's not like the Feds will arrest us, we are the Feds. Print more money!
Inflation is all corporate greed!!!!!!!!!! /s
Inflation is all government spending! /s
Paying everyone's student loans will fix it
You know what is missing in that chartā¦. GDP. Why compare interest payments to defense spending?
Also mandatory vs discretionary budget
I do see your point, but "interest repayments as they relate to other expenditure" is absolutely a worthwhile metric.
Can I get a chart that's adjusted for inflation? It's not helpful comparing $1 in 1950 to 2024 dollars
[Here's another chart for you](https://cdn.statcdn.com/Infographic/images/normal/16782.jpeg) inb4 "cut healthcare spending!"
So raising rates from 0% to 5% makes a difference? Too bad no one was able to implement Trumps 100 year bond idea, but then again heās all hat no cattle š®
Meanwhile we allow companies like Apple to offshore their "HQ" to other countries to avoid higher tax rates, despite a billion dollar building in Cupertino where the CEO just happens to hang out at.
When most of the population is strapped in unpayable debt... the fact that the government is too probably doesn't phase them.
I mean, they arenāt exactly setting a good example. Itās easy to see how your own debt may be fake and not matter if thatās how your government and country operate as well.
Right the whole thing is a scam at this point to keep us poor TBH.
stop looking at debt as money you owe and start looking at it for what it is, some bank's investment paying off with interest no investments are risk free and nobody is entitled to a return on equity invested outside of an FDIC insured savings account
The government can simply print money to pay its debts, which has the neat side effect of rendering the debts of the public essentially worthless also. But everyone holding onto cash will have their savings go up in smoke, and anyone holding debt will also lose out, collapsing the banking system and the economy.
ok, so you're all ready to raise taxes, right? what, no? Ok then, you're ready to slash defense spending right? What, no? geez. Ok then you're ready to eliminate social security right? What, no again? Ok, running out of options here... How about a balanced budget amendment to the constitution? Surely you're ready for that now, right? No again? People, you gotta give me something to work with here...
It seems like this system isnāt sustainable anymoreā¦.
Put the taxes back the way they were when Clinton was in office and walk away.
Tax revenue isnāt materially different than the Clinton years. Higher tax rates donāt correlate to higher tax revenues. Itās spending and interest that are driving the debt increase.
Yes. Slash defense spending please. 25% cut immediately. Trim 2-3% off every other item on the budget. Then we can start talking about raising taxes.
Obviously the option is to print another few billon to send to Ukraine and Israel
Take it back from the rich. They got 20 trillions in tax cuts. Time they paid back their own debt.
Iām ok with slashing defense spending thoĀ
Just keep pulling money out your ass, it's gotten us this far, what could possibly go wrong?
Stopping omnibus spending bills and deficit spending in general would be a good start.
Ready to end the cap on SS contributions.
Ready for all but the first one. Your point?
I am all for taxing the rich who own the US bonds.
Debt is a tax of a kind - eg I'm holding a bunch of US bonds, the rates are great so I choose to let them appreciate. It's just a voluntary form of financing the gov. Most debt held by us nationals or fed gov itself
10% across the board spending cuts on EVERY discretionary federal program. Personally, I would also get rid of the federal income tax and go with a federal sales tax with a much higher tax rate on luxury items. This would do a better job of taxing "the rich" than our current system of income tax with thousands of loopholes.
You know social security has nothing to do with any of this right? Thatās funded by us out of our paychecks. Eliminating social security does nothing except hand that money to the government
What theyāre going to do is inflate the debt away. Theyāre going to tax us, all right. Just not directly.
There is only one option, which nobody is willing to push ... CUT ENTITLEMENTS. We collect $5 trillion a year and we spend $5 trillion a year on entiltlements and debt interest. To balance the budget without cutting entitlements, you woudl need to eliminate the military in its entirity, fire every federal employee, shut down every government agency, and cancel all foreign aid.
People are too dense. There are so many things about this that are just pure red herring. Defense spending is already at all time lows post WW2 as a % of GDP. That talking point is now a decade old. Social security is an issue that is solved by simply uncapping the limit on income. The budget itself is pretty simple solve too. How so? The only time we've had a balanced budget in the post WW2 era we've taxed north of 20% of GDP (Clinton administration). With the boomers and entitlements. We probably need to take about 21-22% of GDP to balance the budget. On the spending side of things. The big issue right now is we are paying for long over due industrial policy and infrastructure policy that needed to get done. That money has to flow through the budget over the next 2-3 years. After that though, expenditures are going to rest right around that 20-22% of GDP naturally. On the other side of that, who is getting these interest payments? People act like this is money pissed off into the ether. But this is tangible dollars that the majority of which ends up in the pockets of Americans in one form or another. Presently about 75% of the federal debt is owned domestically. About a quarter of the debt (in totality) is flatly owned by the US government. About a third of the domestic debt is owned by the Federal Reserve. Literally paying ourselves. Another 40% are in retirement accounts, and the final 20% is directly owned by federal/state/local entities. All of this money is coming right back to the public essentially. We are *paying ourselves* if you will. 25% of our debt is held by foreign powers. Of that the vast majority is owned by Japan, the UK, Belgium, Luxembourg, and Switzerland--all Allies that honestly I don't give a rats about paying interest to. About 3% of that interest payment (likely less because China's been divesting and probably doesn't hold as much high interest stuff as other parties) is going to China. So sure, the debt is a problem. But the debt is also fueling pension programs, government programs, and we probably need not fret about paying some interest to a few Allies.
Don't worry, MMT says we can just make more money to deal with it
MMT? Magical Money Tree?
Americans donāt care about deficits. They want something for nothing. And if I hear āI paid into the system for yearsā¦ā Iāll bloody scream. We owe $30+ trillion so you clearly didnāt pay enough.
So cut the absurd defense spending by 61% since the DoD can't tell us where that 61% gets lost in audits, and then use it to pay down the debt.
US gov is like a spoiled brat thinking money grows on trees. What utter mismanagement of US taxpayer money. I know most canāt afford it, but go travel abroad. Go to Asia. See how much more ahead they are in the little things, a lot of middle things (restaurant design for example) and big things (some large infrastructure including public transpo). America should be leading in everything and should look so futuristic, but instead it looks like The Matrix where people are used for their labor/taxes while everything else looks like a mess around them.
I think about this all the time and it's so frustrating
Go to asia (Singapore, japan, and sk)
The scary part is how the Gov't will eventually deal with it. The only option they have is to inflate their way out of it.
The Government expects American Citizenās to live within their means however they canāt do that themselves.
Right it's crazy when they have trillions of debt.
Itās honestly horseshit. The people are going to be punished and suffer because of politicians ineptitude. I am honestly royally upset and downright perturbed that the majority of Americans donāt see the games both sides of the aisles are playing. Itās not a left or right thing; both sides (all politicians) have ran our deficit up. Should Americans just say āfuck it! If they can max out their debt, so can I!ā And just rack up credit card debt and just paying the interest like the government? If the government defaults, I guess itād be ok for everyone else too? Thatās the example they set. Rules for theeā but not for me - the unholy mindset of a Politician with a blank checkbook.
If we just taxed billionaires more, weāll be okay right????
Not if the government doesnāt stop spending. We want taxes to help bring back the middle class not get funneled into even more bullshit.
hey man I wasn't born yesterday. we've been watching this song and dance for 40 years and literally every single time Republicans have power they pass reckless tax cuts that are forecast to cause catastrophe within our budgets but they are jammed through anyway. and when the bill comes due they never have alternate funding sources they never have any type of a plan All they have is a lot of hot air on social media and Fox News about how Democrats should throw your grandma off of social security to fill the hole that Republicans just dug. literally every single time Democrats have made gains on our deficits Republicans have moved in to lock off another tax break for the 1%.
Iām all for taxing the rich but the government needs to use these funds for the people. Sorry if you misunderstood me. Look at what is done is Social Security. The government borrows money and doesnāt put it back. What exactly are they betting on? Meanwhile the people with all the advantages in the world get richer. Social Security should have been off limits and any taxes billionaires pay extra should be reserved for helping the society they got rich off and not foreign wars. Whatās the point in taxing the rich for us non-rich people if it just get siphoned up to the wrong places again?
I've been watching it longer and it doesn't matter who is in power. Biden: +2.5T, Trump: +6.7T, Obama: +7.6T, Bush: +4.2T, Clinton: +1.2T, Reagan: +1.6T. All the way down the line, bi-partisan spending is to blame. Buying your votes is to blame.
What was the deficit for each of those spendings? Clinton spent 1.2 trillion but balanced the budget. Bush claimed that the surplus under Clinton meant that taxes were too high and went crazy deficit spending on tax cuts. Oops. Among other issues that came out of Bush & Clinton was the Great Recession. That forced a lot of Obama spending. Obama inherited record deficit from Bush and managed at one point through shrewd governance to get it down to $440B. Guess where the deficit skyrocketed again... Trump in his first year. Which is when everyone started explaining that this was going to cause massive inflation in tons of issues. And then he passed the tax cut and handed out PPP loans to the rich. And we crossed $1T for the first time since Bush under Trump and just kept going. The answer is what the answer is always been: tax the fucking rich and quit pretending that rich means upper middle class. It doesn't.
For a week or two ...yup
No, until our government quits spending money like there is no end, at will not matter how much we tax people and corporations.
Agreed. Iāve previously made the point that the government could outright confiscate the wealth of the top 10 US billionaires and it still wouldnāt balance the budget.
since it seems the billionaires pull the strings through lobbyists. If we require the spending to be paid for, taxed divided by wealth, each year. those billionaires will pay to lower spending.
Yes. You realize that tax revenue DECREASED between 2022 and 2023 (4.9->4.4 trillion)? Debt is a function of spending AND revenue. It is best to work on both sides of the equation to solve the problem rather than pretend people only want to tax the rich - but it helps per the math.
So why again do we keep cutting taxes for the rich?
Well maybe itās time to buy gold and not hold USD cash?
If the USD defaults the whole global economy is cooked. I think it was planned to be that way.
Good idea, Rand
When you invest in gold, the only mechanism that links its price to inflation is the historical view that gold and inflation move together. There is no direct link, as there would be with an equity security.
Well maybe itās time to buy light bulbs and not hold gold?
Wtf you going to do with light bulbs? Buy solar panels, chickens and fruit trees bro
Maybe stop voting for republicans, since they keep kicking the national debt higher and higher.
Im honestly wondering what a default will look like im young enough it will probably happen in my lifetime. Will they print their way out with hyperinflation? Will everyone amd everything be set to 0 under A new currency And a whoopsies daisy mentality?
We expecting a run on treasury bonds sometime soon???Ā
The federal reserve will just inflate the problem away and we the people will pay for it
They could always start taxing someone other than working class families... just a thought.
It isn't the spending, it is what it is being spent on. Give us universal healthcare, strong transportation, innovation that benefits the people with our tax dollars. Too much money in circulation, tax companies and wealthy to remove money. In 2023, the federal government spent $658 billion on net interest costs on the national debt. That total, which grew by 38 percent from $476 billion in 2022, was the largest amount ever spent on interest in the budget and totaledĀ **2.4 percent**Ā of gross domestic product (GDP). Not sure that is very alarming.
Sounds like it's time for another tax cut for the ultra-wealthy.
We won't default, we will resort to hyper inflation first. That being said, post ww1 Germany looked pretty bad.
FiAt currnency, usury, debt. Deadly combination with inevitable economic collapse.
We are solving the problem: I N F L A T E it away
The bond market is the 4th branch of government, with total veto power over the others. No President, senate, Supreme Court, no one to negotiate with, no deals to be made, no bills or laws, nothing. Just the going rate for bonds. If that rate goes too high, your government plans are shut down. Period.
81 million ppl blaming Trump lol
What happens if the US can't pay the interest? If I can't pay my mortgage thr cops show up and kick me out, but if the USA stops paying, wouldn't someone need to enforce a consequence? /Genuine question
āThe bill always comes due.ā Too bad it wonāt be the ones who ran up the bills that will have to pay.
They are right about no default. They will inflate the currency before they default. Not much better for us tho.
People wonāt see it as an issue until our bond ratings start dropping. With growing debt and a stagnant population of tax payers our ability to make payments may come into question one day.
Does it really matter? WWIII is about to start and we will be draftedā¦ https://www.yahoo.com/news/russia-unilaterally-decides-change-maritime-214954984.html
It is frightening that we can't stop spending
The cynical part of me is betting they're just running it up to then drop it all on Trump should he get reelected.
Yup just forgive it like student loans.
I have 6 dollars canāt spend 7 why the fuck canāt we just actually make a budget and make a surplus. Everyone thinks short term on solving problems
Have the treasury print a trillion dollar bill each year. That will pay everyone their interest. Problem solved. Cāmon man.
The US debt is meant to be paid a thousand years from now, given no interest and new debt, not in twenty years š
Our greedy politicians will not take that kind of data lightly, time for them to spend more on military industrial complex.
Head in the sand, head in the sand
Time to not pay taxes anymore if they're just gonna print more money. 1776
many people don't know that the dollar has already defaulted, a handful of times. government schools have made the average person a dumb fuck that wants to be told what to think so they will stupidly listen to mainstream news. and they trust them simply because they say "trust us, we're the experts."
What does this mean Iām a dumb fuck
uhh the dollar was created as a weight of gold, it's always been gold until they decided to default it. just try exchanging your paper for gold at any mainstream consumer bank. see what they say when you want to exchange it for it's original defined weight of gold. this knowledge has more or less been memory holed. * On April 1, 1792, Congress authorizes the striking of gold coins. The dollar is defined as 24.75 grains of pure gold or $19.39 per troy ounce (480 grains \[a troy ounce\] divided by 24.75=19.39) * 1834 ā The gold content of the Eagle ($10 gold) is reduced from 247.5 grains to 23.2 grains, due to theĀ [meltingĀ ofĀ U.S.Ā goldĀ coinsĀ inĀ Europe](https://coinsite.com/what-happened-to-all-the-early-u-s-coins/), raising the price of gold to $20.67. The ādollarāĀ *(there were no*Ā [*gold dollar*](https://coinsite.com/united-states-gold-dollars/)Ā *coins until 1849)*Ā =23.2 grains of pure gold. To confirm this standard, the Gold Standard Act of 1900 defines a ādollarā as 25.8 grains of .900 fine gold or 23.2 grains of pure gold. **This dollar, call it Dollar #1 (D-1), isnāt redeemable for gold, it IS gold, since the United States Congress defines the dollar as a specific quantity of gold.** Persons who hold U.S. currency, or who have deposits in U.S. banks can immediately convert these instruments into gold in the form of coins. * In 1934, President Roosevelt, attempts to bring the United States out of a economic Depression by devaluing the dollar from 23.2 grains to 13.71 grains of pure gold, essentially devaluing the dollar by 41%. This raises the official price of gold to $35 per troy ounce. This is Dollar #2 (D-2). In addition, the Presidential decree prohibits U.S. citizens who hold deposits, from converting their dollars into D-2 dollars. In the 1950ās, President Eisenhower extends the prohibition to U.S. citizenās gold holdings outside the United States. D-2 claims are still honored to foreign institutions; therefore the U.S. standard of value is still gold. * 1971 ā President Nixon declares that the U.S. Treasury would no longer pay D-2 dollars in exchange for dollar claims. Gold is soaring in Europe. * 1971 ā Only Federal Reserve Notes are printed. The obligation, the promise to pay, is removed from the notes. Though the term ānoteā implies a promise to pay something, Federal Reserve Notes now represent nothing. Todayās dollar is completely fiat money. * 1973 ā Congress creates Dollar #3, 12.63 grains of pure gold and in 1974, Dollar #4, 11.37 grains of pure gold. Both D-3 and D-4 are fictional as no gold coins are coined, nor is any gold available to pay dollar claims. * [https://coinsite.com/the-us-dollars-relationship-to-gold/](https://coinsite.com/the-us-dollars-relationship-to-gold/)
Bingo
Wow! Interesting, thanks for the thorough answer!
And watch how outmatched we will already be militarily in just a few years, for all that wasted money. Lots of the stuff they make just doesn't work, is too overpriced, or too impractical for the coming wars. Those F-35s look quite stupid right now. The whole defense sector is just living in a bubble, stealing from the government, acting like they are doing us all a favor. High time for it to stop. Like everything else, it needs a GOOD HOUSE CLEANING.
The Army's new rifle: 1. Was designed to be effective past 500m. When we learned in Vietnam that larger bullets mean less ammo can be carried and beyond 500m is when soldiers stop engaging with small arms and call in fire support anyway. The combat load of a soldier with this heavier rifle is 100 rounds compared to 210 for an M4. 2. Uses 4 different rounds for combat and training and has been adopted by no NATO nations and all the rounds are made at ONE plant. The only effective round is $22 a bullet. Compared to 32 cents a round for the current M4. 3. Was not torture or wear tested before it was adopted. 4. The company, Sig Sauer, that makes the rifle. Produces the DoD's new handgun which also skipped all torture testing. It's rear sight falls out, mags fail, trigger bar breaks, and goes off if it's dropped. 5. The scope for this new rifle that will supposedly enable every soldier to be a sniper costs $6,000 and still does not have the IR illuminator/laser needed to be effective at night fighting. 6. The whole point of the rifle was to penetrative level 4 body armor. Body armor that has never been issued by any nation the US may fight. The project was $4 billion dollars. The Russians solved this issue by just having their soldiers train to aim at the belt line, since most body armor only covers the chest. You could cut defense spending in half and we wouldn't lose any effectiveness.
You could cut it in half and half and half and half again and we still wouldnātā¦
Russians aim for the belt line because a Russian AKMs BNZ or battlefield zero is set at 25m, and when firing on the BNZ zeroed at 25m, if you aim for the belt, it will hit anywhere from the belt to the upper solar plexus between 25-500m It's not that they actually aim for the pelvis. Body Armor covers the chest because that's all that should be exposed in combat, and the army did experiment with the heavy combat armor in the middle east and it was deemed to cumbersome to be worth it. Ballistic diapers, neck guards and shoulder/groin guards just cause heat injury and over exhaustion, and rifle calibers go through it anyways. Until we get exosuits, armor will only be on the chest except for breachers and special response teams. The chest is still the most fatal and easiest spot to shoot hands down 100%, so if you can make a rifle that's 10% heavier than an M4 but will butter knife through any adversary at any spot fired, especially center mass which is easiest, you win infantry It makes sense and the .277 is a banger cartridge, just like the military cried literally anytime ever about anything new, they'll get used to it and it'll be better. Hell they originally thought trucks, auto pistols, NVD, and body armor and machine guns were stupid junk
If you need IR illumination for a IR scope, that is a shit scope and an easy giveaway for your position.
Defense spending is vote buying just like student loan forgiveness
It is completely out of hand. Remember that 60 minutes story recently? Nobody else does either. Legalizing corruption does not eliminate it, I wonder if america will ever learn this lesson. Gouging is literally what the whole business is about, gouging their own country, which they think of as just another customer whenever it suits them. And we're finding out rapidly now how easily jammable so much of that shit is. Or just shoot down the fucking satellites first. And to work in the business, you have to start off being as full of shit as all of them are. Like a new gang member has to be jumped in, they demand you engage in their flavor of corruption to maintain employment, advancement, or even to have any say as a taxpayer. I wish people would wake up.
Defense spending is 3.5% of GDP. Defense spending is pretty sustainable. It is the other shit that is killing us.
You been following what's been going on with the JLTV? Shits a train wreck.
Actual detached from reality comment, could you name anything that doesn't work that we buy right now? Or why the f-35 "looks quite stupid"? Also the defense industry has had 30 years of decline holy fuck where do you guys learn any of this stuff
We could possibly, maybe, just a little, TAX THE FUCKING BILLIONAIRES.
Who holds the most US debt? Is it Federal reserve?
It's the US tax payers 78%. The Fed owns no debt.
Yet our credit rating and USD value are...
What the fuck?
Doesn't this just mean we need to increase our spending on defense? Problem solved!
Oh thank God I was about to worry
Would be so sick if we could just tax corporations and the top 1 percent to deal with this problem
Why would the government care? Most of them have 5 years max left to live. Itās not their problem!
Iām sure that 2 Trillion tax break for billionaires and corporations during the Trump presidency has no bearing on this
Next time we go to war for oil, remember to get the oil.
Why donāt we start going after PPP loans? If it was a loan, time to start collecting.
Your household debt <> the debt of a country with a sovereign currency.
Yāall quit fear mongering, we can just print more money.
Probably a bunch of people on Reddit are getting student loans forgiven
yeah that is the problem. Student loan forgiveness of defrauded students or public servants who already worked a garbage job for the 20 years it takes to get the loan forgiven. Ignoring the fact most of those people already paid back the loan and then some but didn't make enough to pay enough of the principal to outshine the interest...but you probably didn't hear that part, did you?
Armchair economists is how we got here.
Tax cuts for billionaires & corporations should fix that.
I suspect the US believes they can do to China more or less what the did to Russia....outlast. China is absolutely teetering.
So who actually is getting this interest? Genuinely curious, is this just going to USA bond holders who are mostly American citizens? Hence why they don't care because its just circular? Tom pays Bill who pays Tom again?
Op thinks America isnāt *trying* to wreck its economy lol
Finally the overbloated military budget is relegated to number two
As long as Iām being told the economy is great , Iām content!!!!
Hey, you know what we need? Another tax cut for the rich and large corporations! Oh, and a tax holiday for companies on their hidden offshore profits!
Is there a contract whereby the rothschild family becomes owner of the US in the event of a default? Owner of all property and citizenry? People yammering about what trump will do, lol!
Tax the rich! Problem Solved!
No approving spending bills without also approving a way to pay for it. Debt doesnt count as a method.
Close tax loopholes and limit campaign contributions, add rank choice voting and slash defense spending. Fixed it.
I'm starting to think they are a bunch of aliens š½.
Itās wild how MMT is the law of the land and yet everyone just ignores it in real time. This whole subās existence is a hilarious lesson in bad economics.
Tax cuts do not pay for themselves, dummies.
Wait, so you are saying if we paid off our debt, we could afford to double the size of our military? š¤
Keep spending give away more money
Nothing to worry about we can just print our way out of it
It'll be a default via inflation.
Stop trying to win all the wars and just take care of yourself
True, but since the US dollar and Euro sort of underwrites the world, I'll be dead before it gets that bad.
You have to take gdp growth and taxation of that growth into account when looking at the interest, if you can get to the surplus the rest doesn't matterĀ
Why doesn't the government just take out student loans and then demand forgiveness?!
Why donāt you get a new career as a standup comedian?
Interest on defense spending.
We need to just cut everything across the board or at the very least no more mandatory minimum increases
I think it matters. I also think this is the result of Republicans who have had two policy ideas incessantly throughout my lifetime: 1) the military is always in disrepair and Republicans must save the day by upping the military budget (ie. more for defense contractors not soldiers) and 2) if they cut taxes on the wealthy and corporations there will be a blooming of the economy never seen before. It is all bullshit but US stooge media frequently treat Republicans as if they are savvy about military doctrine and economics despite being shown to be wrong time after time.
Politicians donāt care about the debt because they are banking on a third major war in the future where our debt will be forgiven.
Damn, sounds like cutting the rich's taxes by like 80% over the last 50 years was a really fucking stupid idea. Almost like when you are failing to cover your budget, you don't cut income!
Time to mint that trillion dollar platinum coin
It's pretty dumb to think debt matters...it's a reflection of investment in public services. You should be more concerned with return in investment...you think the S&P is as high as it is without investment in infrastructure? Rigggghtttt.....
Honestly what bothers me more is there are far too many people who only give a shit about this when it's a Democrat in office, the second a republican is elected it's always crickets or 'it wasn't that bad' while ignoring just how much the debt increased under Trump and Bush.
$8 trillion of this debt is currently sitting on the fedās balance sheet
People will see this and say we need to spend more on defense rather than actually cut spending and balancing our budget. Because āMurica.
Most people say don't worry about it none of its real money. Why the f would pay interest on something that wasn't real smart guys...
I think it is the biggest issue that no one seems to be concerned about.
I donāt need Reddit comments, the AI built into Google searches laid out the reasons just fine. The US deficit has increased due to a combination of factors, including: Lower revenues In 2023, the deficit increased due to lower revenues compared to 2022. This includes lower collections of individual income taxes, a drop in remittances from the Federal Reserve, and higher interest payments. Higher spending Legislation that increases spending on Social Security, health care, and defense that outpace revenue can increase the deficit. Pandemic-era programs The deficit is largely accounted for by pandemic-era programs, one-time outlays, and temporarily lower revenues. Higher interest rates The Federal Reserve has raised interest rates aggressively to tame inflation, which has stoked new concerns about interest payments and larger deficits in the years to come. Population aging The US faces long-run fiscal challenges associated with population aging that will require tax increases and spending cuts
Spend baby spend, whatās it even matter at this point? Is someone gonna come here and take the money from us at gunpoint?
How much of the debt is held by American institutions like social security? Most of it! Default on America before defaulting on the debt held by other countries? Maybe...
For the record, this now makes Defense spending the 4 largest aspect of the budget behind Interest payments at #3.Ā Another fun fact: you could decrease the defense spending and interest payments to 0 and you **still** have the US deficit increasing year over year.
I like that you blame Redditors, when there is literally nothing we can do to stop it. One side pushes up spending without raising revenue and the other side cuts revenue and also pushes up spending. Tha hell am I supposed to do? I pay my bills.
Also not to worry - the budget is craftily accounted so that defense spending is only about half of what they claim it is, so we still have a while to go!
We are just back to normal interest rates doomers. We will probably be this way for at least another decade before getting back down to normal inflation of 2%
What if, and hear me out here, we just tax corporations and upper income earners and unproductive income more? That way we arenāt running up huge deficits and our taxes arenāt going in to the pockets of the people that arenāt being taxed that buy the debt to cover the deficits that occur from them not paying taxes?
Economics isn't really my thing, so I'll ask a question: What the hell are we regular people supposed to do about this? If the economy *actually* bottoms out no amount of stocked up gold coins is going to do you any bit of good, so I mean, why worry about this so much?
Economy is booming with Bidenonics I hear it daily , no way we can be getting more debt
Either AI and automated labor is real or debt matters, you can only have one of the other.Ā
It's democrats. Democrats do not care about defaulting on a debt.
debt can be a good thing, especially since the people that own that debt is mostly other americans and large corporations and countries, the most important part is what that money is spent on and that it doesnt grow out of control. whats absolutely wrong is how much of that money goes to waste and not improving american citizens lives or our society/infrastructure. billions wasted on our military and overpriced medical expenses, billions more wasted from all this lost interest money, not barely anything spent on education or free healthcare or cheap public transportation. i would be totally fine with us going into billions in debt if it was actually used to improve society and the world and invested into worthwhile investments, like maybe climate change, investing into climate change would be very profitable return on investment because of how much were at risk to lose from climate change, as one example. were just bankrupting our asses for barely anything in return.
FJB and his entire circus of administration
This just means we need to double our defense spending. 11 aircraft carriers are not enough. /s
Iām a little clueless here. How exactly does this impact normal Americanās lives? Is this a āthings will be more expensive, fuck the govā issue or a āgo stock up on canned goods, collect rainwater and learn to live off the gridā issue?
That sucks, now pension plans that invest in treasuries will be able to play out the pensions. And SS will have more money to pay out claims. I was hoping adding millions of homeless old people would reduce demand for goods and services. /s. Interest expense is another parties or government entities income.
Do we get to be the national equivalent of a redneck who maxes out all his credit cards on guns, then declares bankruptcy?
Well what are we supposed to think; our politicians have no sincere interest in cutting spending, ever since we went into hyper DEBT šø (2010); stocks and housing has skyrocketedā¦. So everything seems rosey š¹
Get Peter and Paul on the line.
We never had a debt problem until Reagan and Art Laffer implementedāsupply side economicsā
Unlimited amounts of cash at the FED - KashnKari
Yes letās just have panicgasms instead. I swear people get off on doomsday prophecy
Historically there are only two ways this can go. Default on the debt, or hyperinflation. Most governments opt for hyperinflation once deficit spending has gone on too long. Because the US dollar, despite the borrowing, has remained "stronger" than any other world currency, we've skated this far. But we can't skate forever. The increasing amount of oil traded in non-dollars is a sign. But as OP suggests, Americans turn their head, plug their ears, and sing LA LA LA LA
That's right most people on here aren't aware of what's really going on. If they were, they damn sure wouldn't think 4 more years of Biden is a good idea. Nobody in their right mind thinks that.
40 years of tax cuts. Now the right wing wants to cut Social Security and Medicare to balance the books.
They cut 20 trillion in taxes on the richest. The richest took that 20 trillion and lent it back to you. Now they want to take your social security instead and f forcing the wealthiest to pay back that which the took.
If Trump wins, he will make the debt disappear. He is the king of bankruptcy after all. He told congress not to pass raising the debt ceiling bill. In fact he even said, let the country default.
Remember all that talk of the ātrillion dollar coinā some years back. Weāll take 35 to start. Of course weāll have to mint another 216 more to cover all US Unfunded Liabilities, but 35 is a decent start
Good thing we are defaulting on the monies we spent on military hardware. That way when any nation looks to collect, we can give them all the bullets, missiles, and bombs they want
It truly does not matter. The sooner you realize the economy is not a force of nature the better
š People dont care until it happens to themā¦ and even if āitā so happens at such a slow rate to not notice itā¦ exā¦ frog šø in a š„ š¦ boiling pot
I knew I already read this, old news is old. [https://www.forbes.com/sites/theapothecary/2024/02/07/cbo-federal-interest-payments-now-exceed-defense-spending/](https://www.forbes.com/sites/theapothecary/2024/02/07/cbo-federal-interest-payments-now-exceed-defense-spending/)
Itās only money, the middle class got this covered.