Comment on US debt is now $37trn – should we be worried?
Olap@lemmy.world 1 week 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 1 week 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.
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.
ryathal@sh.itjust.works 1 week ago
China is the largest foreign holder, but the vast majority of the debt is owed domestically.
Pringles@sopuli.xyz 1 week ago
Japan is actually the largest US debt holder with over 1.2T. China is 4th iirc with around 750B.
neukenindekeuken@sh.itjust.works 1 week ago
Correct. But they’re still not as much as domestic debt holders.
Olap@lemmy.world 1 week ago
I wouldn’t bet on that. American military might is still untouchable, and America is still a huge oil producer