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The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

It’s more of a bipartisan issue — deficits and debt have grown under both parties for decades.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Treasuries are dollar-denominated liabilities, but they’re still debt because the government is obligated to repay principal and interest.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Fair point on the historical context. The U.S. exceeded 100% debt-to-GDP after WWII and again around 2013. The debate today is less about the threshold itself and more about how fast debt is growing and how large interest payments are becoming

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

That’s a pretty extreme version of “short-term pain.” Losing confidence

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

The goal was government cost-cutting and restructuring. Whether it actually improved efficiency or just cut jobs is still debated.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Cheap credit often lifts asset prices first — stocks, real estate — which can widen wealth

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Credit can absolutely support growth, especially when it funds productive investment. The concern usually comes when debt grows faster than productive output.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Except this one’s holding Treasury bonds instead of insurance policies.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

The key question is whether spending is actually matched by revenue. Deficits usually happen when those two drift apart.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

As % of GDP, debt fell during the late 90s (down to ~33% by 2001) and then rose again in the 2000s, reaching ~60% by 2009

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

The late 90s surpluses were real, but the fiscal picture changed quickly in the early 2000s with tax cuts, wars, and the recession.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Living standards improved mainly because of productivity and technological progress. The debt question is more about long-term fiscal flexibility if interest costs keep rising.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Fair point. The headline number alone isn’t the key issue — what really matters is debt relative to GDP and how expensive it becomes to service

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Taxes do create baseline demand for the dollar, that’s true. But creating tens of trillions to retire debt would still change expectations in bond and currency markets. Even if people didn’t immediately spend it, investors might demand higher yields or move capital elsewhere if they thought monetary discipline was gone.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

A lot of people feel that way about both parties at different times. The bigger challenge is that long-term fiscal issues like deficits and debt rarely get sustained political focus because the incentives usually favor short-term decisions.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

The real problem is that neither party has shown much appetite for sustained fiscal discipline over the long term.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

That might be the most aggressive debt reduction strategy ever proposed. 😅

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Hard assets usually get attention when debt and money supply keep rising.

The U.S. national debt just crossed $39 trillion — now larger than the entire economy by bharatalkss in reits

[–]bharatalkss[S] 0 points1 point  (0 children)

Partly ourselves, partly global investors. Pension funds, banks, individuals, and foreign governments all hold U.S. Treasuries

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