USA Debt Hits $40 Trillion

[Economy 52,938]

https://www.google.com/amp/s/www.cnbc.com/amp/2026/08/19/us-government-debt-passes-40-trillion-mark-for-the-first-time.html

 

US Federal Debt has hit $40T, doubling in the last decade. This now hits over 120% of GDP.

 

Interest rates are already rising in part as the bond market begins to struggle to refinance ever rising amounts of maturing debt and investors demand more returns for higher risk of defaul (in addition to higher inflation)

 

This is concerning as Japan which has the worlds largest Debt To GDP (over 200%) is running into its own troubles and their interest rates are also rising. If Japan (a major holder of US debt) is forced to start selling US treasuries to fund its own failing finances and rescue its falling currency it could put even more pressure in the US.

 

The US now spends more on interest rates than it does on defence (at least official on the books defence spending) making it the largest US expense

[Concertaholic 6,622]

Thanks Trump and all the idiots who elected him twice! 

[JoeCool 1,036]

Good luck to the people trying to get it back 

[JoeCool 1,036]

1 minute ago, Concertaholic said:

Thanks Trump and all the idiots who elected him twice! 

He obviously hasn't done much too help but the debt in the U.S has been growing exponentially since the 2000s 

[Economy 52,938]

26 minutes ago, Concertaholic said:

Thanks Trump and all the idiots who elected him twice! 

 

23 minutes ago, JoeCool said:

He obviously hasn't done much too help but the debt in the U.S has been growing exponentially since the 2000s 

This. Obama grew more debt than Bush and then Trump in turn grew even more debt than Obama, to which Biden grew even more (tho tbf pandemic didnt help that)

 

Trump is a goof but the trend of ever rising debt has been the thing since after the last budget surpluses under Bill Clinton

 

Generally speaking, few developed economies run budget deficits higher than 3% to 4% of GDP max outside recessions. The US has consistently been running deficits at over 5% to 6% which means the economy cant outgrow the size of the debt to keep the Debt To GDP ratio stable

 

In other words this is a disaster waiting to happen if it doesnt stop

Edited 4 hours ago by Economy

[HotLikeMexico 6,660]

It’s okay. The MAGATs will say it’s everyone else’s fault but their lord and savior.

[Concertaholic 6,622]

18 minutes ago, JoeCool said:

He obviously hasn't done much too help but the debt in the U.S has been growing exponentially since the 2000s 

No president has collectively added more to the national debt than Trump and he still has more than two years left in office.

Edited 4 hours ago by Concertaholic

[PornoDanceFight 2,199]

We did it!   

[bxr 2,459]

10 minutes ago, ****oDanceFight said:

We did it!   

[Shadow 6,697]

34 minutes ago, Concertaholic said:

No president has collectively added more to the national debt than Trump and he still has more than two years left in office.

Notice how it started to grow after Ford...  Nixon took the US off the Gold Standard in 1971 and then sent Henry Kissinger to give Saudi Arabia the petrodollar deal in 1973 after the oil embargo in reponse to Yom Kippur War...  and here we are stuck with a fiat currency system.  

 

 

Edited 4 hours ago by Shadow

[Economy 52,938]

1 hour ago, Shadow said:

Notice how it started to grow after Ford...  Nixon took the US off the Gold Standard in 1971 and then sent Henry Kissinger to give Saudi Arabia the petrodollar deal in 1973 after the oil embargo in reponse to Yom Kippur War...  and here we are stuck with a fiat currency system.  

 

 

Fiat currencies are easier to manipulate but at the end of the day, there are countries that have managed their finances properly

 

So i think having a fiat currency doesnt mean you have to bankrupt yourself into deep debt, it just means u have the option to. Which to be fair may be a useful tool if used for genuine emergencies or major investments. Problem is its gone towards funding tax cuts to wealthy and and an insanely overbloaded defence budget among other waste. So here we are

[NeanderthalDavid 832]

You’re welcome 

[Lord Mayhem 3,468]

There goes everyone's retirement savings...peaking US debt amongst the dawn of WW3 with Trump as the President is the definition of hell on earth 

[Creyk 18,693]

I'm so confused didn't he fire all those federal workers and disband the board of education specially to save money and decrease these debts?