Debt Doesn’t Matter Until It Does. What’s The Timeline?
Thoughts?
17 Replies
keep in mind that this is AI generated content
something seems really off by that vid
as to the question at hand, it suck usa has the debt it does. I think the fact that USA is still a global power and huge buyer with relevant buying potential in the global trade. I think USA should be safe until someone like China, India etc takes its place and the some.
until they do it wont matter too too much imo
I'm well aware it's AI video content. Looking for commentary in response to its delineated timeline based on past empire collapses due to massive debt per vid's presentation
Debt/deficits don't matter until they do. This could be a massive problem within a few years or not at all for another 100, or never, for all we know
I'm well aware it's AI video content. Looking for commentary in response to its delineated timeline based on past empire collapses due to massive debt per vid's presentation
Debt/deficits don't matter until they do. This could be a massive problem within a few years or not at all for another 100, or never, for all we know
my post is the surface of when it should start to mater
Not anytime soon.
Look at Japan's borrowing rates. And that's with a sclerotic economy.
They are selling because we are being actively antagonistic towards them not because of the debt
delineated timeline based on past empire collapses due to massive debt per vid's presentation
We are not able to predict this and certainly not based on "massive debt".
US Debt Held by the Public: $31.03 Tn as of Feb 12th.
US Household Net Worth: $181.6 Trillion as of Q3 2025.
Approx $36Tn of that is Home Equity, so if you want to ignore that because....reasons.... you have $145 Trillion or about ~4.7x coverage on US Federal Debt held by the public.
Essentially, you have a family with $145k in the bank that owes $31k on their mortgage, cars, CCs, bank loans all combined. Plus their home equity. Not an issue.
This also doesn't include the Federal Assets of Gold [over a Trillion now], RE [largest landowner in the country], oil and gas, drilling leases, mining leases, etc.
Essentially, you have a family with $145k in the bank that owes $31k on their mortgage, cars, CCs, bank loans all combined. Plus their home equity. Not an issue.
What the hell are you talking about? $145K in the family's bank is liquid. How exactly is the federal government going to access that US household net worth to pay down debt?
They aren't paying down any debt. Instead they will be running 1T$+ budget deficits in perpetuity financed by debt that will eventually become worthless. (at least by today's standards)
'Foreign purchases of US financial assets accelerated in 2025, led by demand for stocks and US Treasuries, data on Wednesday showed — marking a sharp rebuttal of the “Sell America” narrative that’s become a regular feature of discussion among market participants.
Overseas investors bought a net $1.55 trillion of long-term US financial assets in 2025, data released by the Treasury Department on Wednesday showed. That’s up from a net $1.18 trillion of purchases the previous year. Of that total, $658.5 billion went into equities and $442.7 billion to Treasury notes and bonds.' ~BBG
Foreign buyers also disagree the debt will be worthless.
I wonder if that has anything to do with another record trade deficit.
TBF trade deficit in goods hit ATH. Overall, the total trade deficit (goods + services) dipped slightly in 2025, and was the 3rd highest on record.
The trade deficit isn't a problem worth considering, but the national debt and government spending as a % of DGP are massive problems.
The fact that we finally got a president that wanted to cut govt spending and he got an insane amount of pushback from both parties means it is a big problem that isn't likely to away anytime soon.
