Congratulations America! You did it!

[titan_tim]

We all knew this day would come, but now that it's here... wow!

Twenty years ago the debt was a measly 10 trillion.
Ten years ago the debt was 20 trillion.
The pattern would state that by 2036 it'll double to 80 trillion.

Here's hoping that AI can make up for everything!

 

[VioletRose]

The pattern could also state that by 2036 it will be 30 trillion.

 

[titan_tim]

The pattern could also state that by 2036 it will be 30 trillion.

That would be true if it wasn't currently 40 trillion.

That being said, I can't imagine what it would take to spend 40 trillion dollars in 10 years. It would be 1 trillion per year for the interest and then 3 trillion per year to spend on whatever war will be next or an economy stimulus each year.

 

[VioletRose]

That would be true if it wasn't currently 40 trillion.

Oh. Yeah. I'm high. lol

 

[titan_tim]

Oh. Yeah. I'm high. lol

Awww, ill have to wait for the weekend for that

 

[emigre]

How much of the national debt is due to the price of eggs?

 

[Taleweaver]

I have to admit I don't get national debt. Okay, the USA has it on a much larger scale, but most if not all countries I know have borrowed multiple millions to fund themselves. I get WHY they do it (if I build a school with borrowed money now, I can tax higher paid citizens down the line), but the fact that seemingly everyone does it makes it sound...weird, to say the least. From whom are we borrowing if everyone does it? Are we all borrowing from each other somehow?

After the 2008 crash I really wanted to get to know the market, but it's just...seemingly impossible to grasp. That is: I understood every step or reasoning...but by the time I (thought I) had all the pieces, it's like the first one had escaped my grasp, or didn't fit in what I learned earlier.

But for the topic at hand: it should be frightening. Mostly to the USA, but to the rest of the world as well. Like...the monthly interest on all that debt is so high it dwarves the costs of education, health and even the army. I thought combined, but chatgpt says otherwise:

ItemApproximate amountInterest on national debt$96–117 billion per month
National defense, including the Armyroughly $80–85 billion per month
Medicare aloneroughly $80 billion per month
Medicaidroughly $40–60 billion per month
Federal Department of Educationroughly $3 billion per month

Still...that's insanity. Worse is that you can't really climb down. With those interest rates, paying back the main sum is like nibbling at infinity. And the only reason the US can keep borrowing money to keep themselves afloat is because they do pay. Because for all the tough talk and postering, missing even a single payment will decrease the credibility of the dollar, which is a massive death spiral.

 

[Dark_Ansem]

Where did all that DOGE money go, this is just the same stupidity of Tory auterity

 

[emigre]

Where did all that DOGE money go, this is just the same stupidity of Tory auterity

It went on covering the price of eggs Libtard.

 

[Nightwish]

From whom are we borrowing if everyone does it?

From the people you're paying interest to, which were angry when some countries were in a fortuitous position to severely cut their debt - they'd have to actually work to earn money, perish the thought.
The funny part is that we've had a decade where it was clear that creating money to spend came first, and a) following that with selling interest bearing money at high, low, or zero was a political choice , b) either way, gutting spending doesn't crowd in any investment in fixing or creating things
The hilarious part is we're going to spend, at least, another decade stripping yet more copper wire from the walls, with a lot of help from he climate, before returning to deficit spending to fix what was broken, or even recreating from scrap what we forgot how do do.
Or Altman will invent God, despite needing revenue that doesn't exist for quickly degrading capacity that no one is building with any speed, using electrical power that won't exist anytime soon, and the output being overpriced, regurgitated, often wrong, just above mediocre when it isn't, and out of data to steal and pretend it can be better.

 

[Taleweaver]

Hmm...I guess I shouldn't have asked a question I could have the answer to within a chat. According to AI, the USA is in reality in debt, mostly to these countries:

[TABLE=full]
[TR]
[th]Holder[/th][th]U.S. Treasury securities[/th]
[/TR]
[TR]
[td]Japan[/td][td]$1.116 trillion[/td]
[/TR]
[TR]
[td]United Kingdom[/td][td]$939.9 billion[/td]
[/TR]
[TR]
[td]China, mainland[/td][td]$633.4 billion[/td]
[/TR]
[TR]
[td]Belgium[/td][td]$482.5 billion[/td]
[/TR]
[TR]
[td]Canada[/td][td]$459.6 billion[/td]
[/TR]
[TR]
[td]Cayman Islands[/td][td]$453.1 billion[/td]
[/TR]
[TR]
[td]Luxembourg[/td][td]$434.2 billion[/td]
[/TR]
[TR]
[td]France[/td][td]$389.9 billion[/td]
[/TR]
[TR]
[td]Ireland[/td][td]$353.5 billion[/td]
[/TR]
[TR]
[td]Taiwan[/td][td]$302.5 billion[/td]
[/TR]
[/TABLE]
Other significant holders include Switzerland, Singapore, Hong Kong, Norway, India, Brazil, Saudi Arabia, South Korea, the United Arab Emirates, and Israel.

EDIT: added a few smaller ones.

So...that explains why the US came to Japan's aid recently: if they're doing bad economically (which they do), they could try to sell off the debt. The US aid was to ensure they held on to it.
Furthermore...I'm not sure whether I'm more surprised to see...
Canada (WTF??? That rhetoric muddles the fact that Canada in essence has the USA as a colony!).
Luxembourg (that tiny country? If the US pays them back, every citizen there has 6 million bucks!!!)
Belgium (wwwwwwwhhhhhaaaaaaatttt??????? )

 

[SeltzerMist]

MAGA will care about the debt again if there's a Democrat in office.

 

[BigOnYa]

The White House is getting new everything though, on our dime, even though most will never get to see it. Like that is really a priority, or what Americans really want our tax dollars going towards - a $900 million dollar Ballroom.

 

[Dark_Ansem]

MAGA will care about the debt again if there's a Democrat in office.

of course they will

 

[Exnor]

Well Pedo Trump is more concern in banging his aid Harp nowadays.

Also his fortune continues to grow alongside with Musk, Peter Thiel, and all the other monsters.

 

[titan_tim]

Hmm...I guess I shouldn't have asked a question I could have the answer to within a chat. According to AI, the USA is in reality in debt, mostly to these countries:

[TABLE=full]
[TR]
[th]Holder[/th][th]U.S. Treasury securities[/th]
[/TR]
[TR]
[td]Japan[/td][td]$1.116 trillion[/td]
[/TR]
[TR]
[td]United Kingdom[/td][td]$939.9 billion[/td]
[/TR]
[TR]
[td]China, mainland[/td][td]$633.4 billion[/td]
[/TR]
[TR]
[td]Belgium[/td][td]$482.5 billion[/td]
[/TR]
[TR]
[td]Canada[/td][td]$459.6 billion[/td]
[/TR]
[TR]
[td]Cayman Islands[/td][td]$453.1 billion[/td]
[/TR]
[TR]
[td]Luxembourg[/td][td]$434.2 billion[/td]
[/TR]
[TR]
[td]France[/td][td]$389.9 billion[/td]
[/TR]
[TR]
[td]Ireland[/td][td]$353.5 billion[/td]
[/TR]
[TR]
[td]Taiwan[/td][td]$302.5 billion[/td]
[/TR]
[/TABLE]
Other significant holders include Switzerland, Singapore, Hong Kong, Norway, India, Brazil, Saudi Arabia, South Korea, the United Arab Emirates, and Israel.

EDIT: added a few smaller ones.

So...that explains why the US came to Japan's aid recently: if they're doing bad economically (which they do), they could try to sell off the debt. The US aid was to ensure they held on to it.
Furthermore...I'm not sure whether I'm more surprised to see...
Canada (WTF??? That rhetoric muddles the fact that Canada in essence has the USA as a colony!).
Luxembourg (that tiny country? If the US pays them back, every citizen there has 6 million bucks!!!)
Belgium (wwwwwwwhhhhhaaaaaaatttt??????? )

It totally makes sense for those countries to buy into US treasuries. It's pretty easy money to just put it there for 30 years and collect the interest. US was a trustworthy country to invest in. But those are just the external holders of debt. That accounts for about 23% of it. The majority at 58% is held by internal US investors and institutions. Pension funds, Mutual funds, Insurance companies, Banks, Investment funds, etc. They're all kind of stuck holding those treasuries.

So the big issue is Japan (And external holders) for multiple reasons. Japan's yen is suuuuuuuuucking hard. They've been doing what they can to prop it up (Buying back yen, increasing interest rates ever so slowly, and selling off US treasuries). Everything they've done so far has been a temporary band-aid. The yen shoots up slightly, then slowly goes down a week later.

If Japan were to decide to sell off their 1T US bonds, it would cause a run on selling US debt across the world. The US dollar would plummet in value to nothing overnight. US dollar would stop being the world standard, and China gets what they've wanted for years.

If Japan chooses to increase their interest rates too much, and it'll destroy the Yen carry trade (Go google it if you don't know. It's really interesting). That will destroy the US stock market/bitcoin/and other investments which were bought using borrowed Japanese money.

So the US is in a really shit situation due to this and are sort of screwing around with the system to prevent Japan from selling the treasuries. They're taking the treasuries and giving Japan money for them. But they're just 'holding' them until / if Japan decides to buy them back again. It's not normal.