Welcome to the $30 Trillion Club America!

According to the NYT, the US government surpassed $30 trillion in debt for the first time ever February 7th. Pop the champagne!

https://www.nytimes.com/2022/02/01/us/politics/national-debt-30-trillion.html

What a wonderful time to have this much debt! 🙂 Interest rates are clearly heading higher, perhaps significantly. What could possibly go wrong?

How did it get this way? Why did we let it happen? Does it even matter?

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MURD3RM0NK3Y · 26-30, M

Doesn't matter. Can't we just print out more money ? Duh.

Nature3 · 56-60, M

@MURD3RM0NK3Y We can. It's called fractional reserve banking. If the average American knew how it all actually worked, there would be riots in the streets.

irishmolly72 · 56-60, F

@MURD3RM0NK3Y The Fed is supposed to take away the puch bowl when the party is just getting started. What should it do when everyone is already shitface drunk?????

GerOttman · 61-69, M

@Nature3 " If the average American knew how it all actually worked, there would be riots in the streets."

The average american can't even spell 'fractional reserve banking'

Nature3 · 56-60, M

@GerOttman That is true. Too many ignorant Americans. Ask the Europeans about our stupidity level. They will tell you.

caesar7 · 61-69, M

@MURD3RM0NK3Y Exactly. I am sure it doesn't grow on trees..lol

irishmolly72 · 56-60, F

@MURD3RM0NK3Y After that huge 40+ year bull market in bonds, imagine how many investors are complacently long and beginning to get stung, and imagine how their behaviors could change to become sellers of bonds, and imagine the effects that would have. The total amount of bonds that would then have to be sold would equal the new bonds offered plus those being sold—a gigantic amount.

Will...

1) the interest rate go sharply higher and drastically curtail private sector borrowing or...

2) the central bank print yet more money and buy enough of the debt to bridge the gap, which cheapens the value of money and inflation skyrockets.

Pick your poison! 🤢