US debt is now $37tn – should we be worried?
www.bbc.com
President Trump's budget bill will add to the US debt pile but is there a limit to how much the rest of the world will lend Uncle Sam?

As Donald Trump cheered the passage of his self-styled, and officially named, Big Beautiful Budget Bill through Congress this week, long-sown seeds of doubt about the scale and sustainability of US borrowing from the rest of the world sprouted anew.

Trump’s tax-cutting budget bill is expected to add at least $3 trillion (£2.2 trillion) to the US’s already eye-watering $37tn (£27tn) debt pile. There is no shortage of critics of the plan, not least Trump’s former ally Elon Musk, who has called it a “disgusting abomination”.

The growing debt pile leaves some to wonder whether there is a limit to how much the rest of the world will lend Uncle Sam.

  • CMahaff@lemmy.worldEnglish
    27·
    2 days ago

    The worst part of the debt is that nothing good was done with it.

    If you use that money to implement a national healthcare system, or fix the national infrastructure, or stabilize social security, or figure out child care, or work on affordable housing, or fix the cost of education, or invest in renewable energy, etc. then maybe it’s worth it. Hell, you might even end up net positive in the end with all the good done to society in the long run.

    Instead, all of these things are even worse than before while most of the money was spent on a bunch of useless wars and tax cuts for the rich.

    And now, there’s no more easy money to be borrowed to fix anything.

  • Profligate_Parasite@lemmy.today
    1·
    24 hours ago

    Lmao ppl like “hmm generally, im not worried about anything… everything is so great why would I? But I see this article… should I? Should I worry?”

  • Treczoks@lemmy.world
    27·
    2 days ago

    With Trump weakening the trust in the dollar and people looking at the Euro as a new reference, the rates at which the US can borrow money is already going up. At 37tn borrowed, even a tiny uptick will cost a fortune or two. Which, unless the conservatives suddenly show fiscal responsibility (which they never did so far), will just increase the deficit.

          • chicken@lemmy.dbzer0.com
            2·
            2 days ago

            You kind of need it for some programs (traditional roguelikes, some media players adjust the volume with numpad keys) so I wouldn’t want to go without it myself, but to each their own I suppose

            • Rai@lemmy.dbzer0.com
              3·
              2 days ago

              I actually switch it off with a full-size! I use my full size for anything where I’m not playing games, and my 60% alongside a Razer Tartarus v2 for playing games. It’s the best possible setup I’ve ever had, and I’ve tried a million setups in my days hahaha

              Quick edit: the lil hand keyboard can map out anything I want, and my 60% has FN volume buttons!

  • Bluefalcon@discuss.tchncs.de
    153·
    2 days ago

    People need to understand that the debt is not the issue. It’s healthy to run a national debt. The massive problem is the dollar is being run into the ground. We are losing allies left and right which compounds your debt. He is fucking us on both sides.

  • Olap@lemmy.world
    152·
    2 days ago

    Trump understands that it doesn’t matter about the debt. Who does he owe it to after all? The banks won’t call the debts in, cause they don’t need to, and if he devalues the dollar he sees it as a win for exports

    • Part4@infosec.pub
      221·
      1 day ago

      ‘He’ (the US) owe it in large part to the world, who were forced to buy us debt in order to buy oil. China is the biggest holder of US debt iirc.

      The US’s voluntary withdrawal from the post ww2 economic order (from which it profited greatly) has absolutely hastened and cemented this process of ‘dedollarisation’.

      This debt is coming due, the strength of the dollar has already dropped greatly, US interest rates will rise. The US dollar will be cheap enough to compete with India and China to be the world’s factory (a major part of Trump’s election campaign and success).

      It won’t happen all at once as the world will look to manage America’s decline while trying to maintain as stable a transition as possible.

      But please be aware, this debt is going to come due and it has absolutely been hastened by Americans voting for Trump a second time. Fore warned is forearmed. Good luck.

  • Clent@lemmy.dbzer0.comEnglish
    81·
    2 days ago

    US is going isolationist. Our debt becomes the worlds problem.

    We’re trying the single guy life for a while again. So rest of the world we’re breaking up, it’s definitely us not you but we’re leaving all our baggage to you and keeping some of the keys. You

    Enjoy your orgies of on going cooperations and spirits of goodwill, you heathen scum.

  • humanspiral@lemmy.ca
    3·
    2 days ago

    The $3.4T deficit increase projection, $340B/year is on top of the $1.9T projected deficit for 2025 prior to bill. The projected deficit for FY2035 is $2.7T. This is before golden dome, and other warmongering/Israel funding. 2025 and 2035 numbers are both about 6.1% of GDP.

    GOP talking points have include the fantasy of growing at 3% (instead of 1.9%) annually to pay for the $340B/year increase, but at 6.1% deficit/GDP ratio, total debt increases as long as nominal GDP doesn’t grow above 6.1%. Cutting healthcare, and population through deportations won’t cause growth.

  • magnetosphere@fedia.io
    2·
    2 days ago

    Yeah, I should worry… but with all the other shit that’s going on, my worry buffer is on overflow. I’m gonna pretend I didn’t read this.

  • shortwavesurfer@lemmy.zip
    724·
    2 days ago

    I have lost all faith in fiat currency, and so I only now hold Goldbacks and Monero. If I need fiat currency to pay for something, I can easily get it using one of those two currencies that are stronger.

    Edit: pretty sure i struck a nerve. After all, how dare slaves have thoughts of their own