Why does US Global Debt keep rising?

[curiosity_20]

The US federal government's public debt has skyrocketed at a breakneck pace to an unprecedented $35 trillion, smashing the record set just months ago and sending fresh worries to the global market. The reading once again reminded the world of the ticking time bomb it has to face as a result of a series of irresponsible decisions made by the US government, Chinese observers said on Tuesday.

....

In June 2023, the US Congress approved the 103rd debt ceiling raise in the country since 1945 after months of partisan arm-wrestling. The bill allowed the US government to avert a debt default by borrowing more.

....

Can US debt keep rising indefinitely? Does the number have any signficance at all? What will happen if it rises to 1 Quadrillion?

Source:
https://www.globaltimes.cn/page/202407/1317057.shtml

 

[Humster]

ATM for Europe loh.

 

[Can Or Not]

Just print more money…

 

[Ubi-Warrior]

The US federal government's public debt has skyrocketed at a breakneck pace to an unprecedented $35 trillion, smashing the record set just months ago and sending fresh worries to the global market. The reading once again reminded the world of the ticking time bomb it has to face as a result of a series of irresponsible decisions made by the US government, Chinese observers said on Tuesday.
....
In June 2023, the US Congress approved the 103rd debt ceiling raise in the country since 1945 after months of partisan arm-wrestling. The bill allowed the US government to avert a debt default by borrowing more.
....
Can US debt keep rising indefinitely? Does the number have any signficance at all? What will happen if it rises to 1 Quadrillion?
Source:
https://www.globaltimes.cn/page/202407/1317057.shtml

Because they are not paying any down other than basic service.

Why do you think its always going up


App Time!!!

 

[Ronaldo88]

while sg kiasi about debt

 

[Akky85]

The US federal government's public debt has skyrocketed at a breakneck pace to an unprecedented $35 trillion, smashing the record set just months ago and sending fresh worries to the global market. The reading once again reminded the world of the ticking time bomb it has to face as a result of a series of irresponsible decisions made by the US government, Chinese observers said on Tuesday.

....

In June 2023, the US Congress approved the 103rd debt ceiling raise in the country since 1945 after months of partisan arm-wrestling. The bill allowed the US government to avert a debt default by borrowing more.

....

Can US debt keep rising indefinitely? Does the number have any signficance at all? What will happen if it rises to 1 Quadrillion?

Source:
https://www.globaltimes.cn/page/202407/1317057.shtml

What can the rest of the world do? Take their guns and nuclear bombs and point them to the US?

They could all group up and disregard the USD as a world currency if they so wanted to. But will US allows it? And also to write off all the USD in their respective PnL is gonna backlash on themselves too.

 

[asiafrenz]

If not where got more millionaires billionaires

 

[gld998]

Trump will make it worse..

 

[yeokiwi]

What can the rest of the world do? Take their guns and nuclear bombs and point them to the US?

They could all group up and disregard the USD as a world currency if they so wanted to. But will US allows it? And also to write off all the USD in their respective PnL is gonna backlash on themselves too.

then u buy apple phones, nvidia cards, intel processors with RMB ah??

I will tink that u r either using windows, IOS or android to write this message?

 

[VEF888]

globaltimes.cn


funny thing is, countries keep saying it's a ticking time bomb, but they keep pouring money into the US of A treasury bills.

 

[kalipo]

they just give Philippine some money


Read HWZ Forum Rules!

 

[yeokiwi]

Their money is supported by their products and services. Maybe u can try to exclude US products and services from your life loh.
Oops.. cannot leh, Singpass is ran on Amazon Cloud.
No US tech, cannot get GST vouchers from Gov.

 

[Nefalrin]

Debt up.

US index also up.

 

[Okmolly]

globaltimes.cn


funny thing is, countries keep saying it's a ticking time bomb, but they keep pouring money into the US of A treasury bills.

Our country still want to put money on the US

 

[Akky85]

then u buy apple phones, nvidia cards, intel processors with RMB ah??

I will tink that u r either using windows, IOS or android to write this message?

It does not matter what currency ppl use to buy. The world will adjust. The problem is with the deed. Who's gonna stick his head out 1st?

 

[needsomeadvice]

Our country still want to put money on the US

better put money on the US than other markets la

 

[Elnoxv]

Can US debt keep rising indefinitely?

IMO, as long as they keep their military dominance and might, yes. However, there are signs brewing that the Petro Dollar has started to crumble.

e.g. BRICS using alternative payment (other than US dollars), saudi stop using dollars as their default payment and signed a defence agreement with China.

Does the number have any signficance at all? What will happen if it rises to 1 Quadrillion?

What will happen if it rises to 1 Quadrillion?

There are a few possibilities:
1. Proxy wars, taking the target resources and assets. e.g. Russia assets being seized, Iraq wars.
2. Manipulate Rates so that debts that used to be 100B now becomes 50B due to exchange rates.

 

[VEF888]

Our country still want to put money on the US

better than pour money into drain via OBOR, no?

 

[Zinna]

Scared what? They own the world's security and lots of technology. Nobody can diversify away from them

 

[ouroboroso]

Can US debt keep rising indefinitely? Does the number have any signficance at all? What will happen if it rises to 1 Quadrillion?

Not an expert but I believe technically they can keep issuing and selling T-bills as long as there is demand (albeit at higher and higher borrowing rates in order to continue to attract buying interest).

As their borrowings are denominated in their own currency, they could also opt for the hyperinflationary route by continuously issuing more USD for payments.

They may of course choose to default on their repayments and obligations but that would be a scenario that they opt for of their own accord rather than from external pressure.

In short, two eventual outcomes (though the timeframe is moot):

1. hyperinflation

2. debt default