BetelbuddyMar 19

US national debt surges past $39 Trillion

https://apnews.com/article/us-national-deficit-hits-39-million-6ff73495bae701b5c009d3da5515ca3a

US national debt surges past $39 trillion

The U.S. national debt has hit a record $39 trillion. The deficit hit the milestone Wednesday just weeks into the U.S.-Israeli war in Iran. The Government Accountability Office says rising debt can raise borrowing costs for mortgages and cars. It can also squeeze wages and push up prices. Budget advocates warn that growing interest payments force tougher tradeoffs. The federal debt has surged under both Republican and Democratic presidents, most recently fueled by wars, large-scale pandemic spending and tax cuts. The U.S. national debt hit $38 trillion five months ago — and $37 trillion two months before that.

AP News
Show threadjawns

Economists often say that the national debt isn't analogous to consumer debt, because the US has a number of means to address it that the average consumer does not have, including the ability to print money.

And while that's true ... perhaps we as citizens and taxpayers would be better off ignoring that technicality and treating this debt as more like consumer debt.

Eventually, it's going to come back to bite us or our children, and we need to be willing to make some hard choices now to avoid having to make even harder choices later.

Mar 19 at 5:25pmWeb
Show threadwagwangMar 19
Ah yes, the "we can cure debt by going into hyperinflation" argument
Show threadcogman10Mar 19

It's something that the US could uniquely do without going into hyperinflation due to it's status as a reserve currency.

That all, of course, changes if other countries decide they've had enough of our shit and switch over to different reserve currencies like BRICS. And, of course, printing currency to get out of debt is something that would make countries consider dumping the dollar as a reserve currency.

Show threadEkarosMar 19
At some point it becomes better option just to take the money you get paid back and instead of loaning it out again buy something... Anything else really... And then it gets worse.
Show threadleaves83829Mar 19

not just eventually. Its coming back to bite you now and for the last 10 years and the next 10 years. if you sell a house, or any kind of equities or gold, you're going to be a world of pain. Most of the "capital gains" aren't gains at all, it's just devaluation of the dollar. Let's say dollar devaluation is roughly 7% per year, that means you're paying 2% to 2.5% of your houses value every year in "capital gains" tax. sure, you don't pay it until you sell, but rest assured, it's accumulating. so 2M house means 40K to 50K per year! and if you think i'm overstating the 7%, just look at the case shiller housing index for the last 10 to 15 years!

and if you're holding cash or bonds, you're even worse off. even if the dollar is devaluing at just 7% per year, that's a 50% loss in just 10 years and that compounds to 75% loss after 20 years.

Show threadmitthrowaway2Mar 19
I used to think that way, but now I don't believe that the debt ever needs to be repaid by anyone's children. The public sector debt is basically just a record of net private sector liquid assets, and repaying it would amount to the private sector losing all of its liquidity, or having to replace it with private debt instead. That's basically what happened throughout the roaring '20s preceding the Great Depression, and I don't think it really ends up being a good move.