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U.S. national debt surpasses $34 trillion
(www.upi.com)
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this post was submitted on 03 Jan 2024
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Meh.. or what exactly? What happens and when?
I see this number trotted out every election year, and everyone gets their panties in a bunch, but I can't see what happens if we don't fix it.
Eventually the interest in the debt will grow too large to service. The government will have to print more and more money leading to hyperinflation. The entire global economy will be impacted as faith in the dollar collapses. The global economy slows and eventually switches to trading in the Yuan. The US loses a ton of it's soft power globally.
That sounds ominous. When does it happen? There must be a point at which it tips.
We have quite a while yet. We spend about 200 billion servicing the debt right now and have around 4.8 trillion in revenue.
The warning line is having a debt equal to your GDP. The US has a GDP of around 28 trillion but a debt of 34 trillion. So we are past that warning line, but by itself that doesn't mean anything.
For other countries it would signal to banks and other countries that it might be a bad idea to loan to them, but the US has a kind of special status in the global economy and this hasn't slowed down loaning so far.