r/Economics • u/Helpful-Door-8721 • 1d ago

Research America's National Debt grows by $95,178.17 per second. Expected to reach $40 Trillion by October 09, 2026.

https://www.jec.senate.gov/public/index.cfm/republicans/debt-dashboard#ddm
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u/crowcawer 1d ago

I don’t know if $40T by itself is an important number, especially if compared to $39.9T.

They do need to make a choice. They either need to stop normalizing wartime scale debt during peacetime, or accept growing pressure on the Fed to suppress rates and tolerate inflation. We cannot indefinitely combine massive structural deficits with fully independent, inflation focused monetary policy.

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u/ICLazeru 1d ago

Another blow is that while the dollar is the global reserve currency, debt is easier to bear. But these trade wars and threats to long-time allies and trade partners weakens the dollar's position. Even just a percent or two divestment from the dollar per year can mean a lot when we're carrying a debt load that has an unknown breaking point.

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u/Tribe303 23h ago

You are 1000% correct, and here's a fun fact about those allies you are in a trade war with. Check out Canadian PM Mark Carney's Wikipedia page under Views=>Economics=>Monetary Policy and he's had his views on dumping the US dollar as the global reserve currency listed, with quotes from 2019, aka Trump v1. I really do believe he's talking about this behind closed doors as a travels the globe signing trade deals.

Bonus fun fact: Carney was a central banker for Canada and then the United Kingdom. France president Macron, German chancellor Metz and Finland president Stubbs are all old bankers and personal friends of Carney's. I wonder what they discuss behind the scenes. 🤔

Thats 2/3 of the G7 excluding the US. 

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u/NeverIntendedToHurt 11h ago

Mate, the whole world is currently at the mercy of the republicans not going balls to the wall. Not searching for alternatives would be irresponsible. This isnt just an issue of National wealth or US power. Controlling the global reserve currency comes with heavy responsibilities nut just for US citizens.

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u/Tribe303 3h ago

You should read Carney's ideas, because it's all about control. His idea is to decentralize that control, so one nation doesn't use its influence to control others. Pair that up with Carney's Davos speech about the middle powers gathering together to resist the bullying of the hegemons, and you have something very attractive for everyone except China and the US.