The U.S. national debt is rising by $1 trillion about every 100 days

At the risk of sounding completely naive, I’d also be interested in your analysis of this question. The percentage of foreign owned debt is brought up in all of these conversations, but rarely do I see a plain explanation of its practical significance.

 

All of this talk about debt and deficit spending goes away if a certain person is elected and pushes for tax cuts that will somehow pay for themselves

 

I think China has been lessening its bond holding. The two largest holders by far is the federal reserve and the Social security trust fund.

 

So Boebert and Jeffords are communist now?

 

With a republican congress?

 

LOL, only the person signing off gets the blame/credit.

 

All this talk...

 

So when we cant repay SS, we just say my bad because ???
More like abe owes paul, same family, good for abe if paul never needs to get paid. Bad for paul if he does.

What scares me is how much more of the budget has to go to debt as interest rates increase. Fight inflation but raise the VIG..

Net interest costs soared to $659 billion in fiscal year 2023, which ended September 30, according to the Treasury Department. That’s up $184 billion, or 39%, from the previous year and is nearly double what it was in fiscal year 2020.
......
Interest payments now ranks fourth in spending, behind Social Security, Medicare and defense, according to Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget. The government spent more on net interest than on Medicaid, veterans programs and all spending on children in the last fiscal year. And if rates remain high, as expected, interest payments could overtake defense within a few years.
This means more federal tax revenue is going toward interest payments. The obligation ate up about 30 cents of every tax dollar in the first three quarters of fiscal 2023, compared with less than 22 cents over the same period in the two prior fiscal years, said Jerry Dwyer, an economics professor emeritus at Clemson University.

Interest payments on the nation’s debt are rising and will get even worse | CNN Politics

 

I’ve read in the past the risk of foreign governments holding a significant amount of US Treasuries is ….. if they were to pull out of future auctions, effectively dumping those significant holdings into the market, the treasury would need to replace that buyer in subsequent refinancing auctions. The projected impact would be increased discounts and significantly higher borrowing costs in those auctions. The increased discounts would serve to increase the total debt to be issued to refinance current maturities resulting in even more debt being sold to fewer buyers, further increasing interest rates.

Additionally, everyone holding future maturities takes a haircut since market prices in larger discount/interest rate. Impact can be seen in bank failures as interest rates increased last year - Silicon Valley

 

Yes, I am. Answer the question.

 

I don’t think that you have any risk at all here.

 

After posting all of that above, I do wonder how significant the risk of foreign owned US debt really is. Here’s info on those holdings.
5 Foreign Countries That Own the Most U.S. Debt

 

China holds something like $700B. A tiny amount of the debt.

 

Low risk, would be my opinion.

 

It’s from 2022 so maybe things have changed.

 

I think they unwound some more since that graph. But still, pretty small piece of $30T.

 

Tell us how you really feel about Groomer Gym Jordan

 

Of the possible options, I’m choosing to interpret this in the positive direction.

 

Awfully demanding for a person that didn't answer my question but, instead, asked another one.

Obviously, if a taxpayer owes themselves money, it is essentially a matter of internal accounting. They pay the taxes and then the government pays them back. They send in money to get it back. It isn't like that money goes to a third party. So the taxes have a deflationary effect, by pulling money out of a consumers hands and putting it into the hands of a government paying back debt, while the handing back of that money has an inflationary effect that, in theory, should match it, as consumers go spend or invest that money in other investments.

Now, answer my question.