Mastodawn

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

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jawns Mar 19

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.

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leaves83829

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.