this post was submitted on 05 Jul 2025
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Economics

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As Donald Trump cheered the passage of his self-styled, and officially named, Big Beautiful Budget Bill through Congress this week, long-sown seeds of doubt about the scale and sustainability of US borrowing from the rest of the world sprouted anew.

Trump's tax-cutting budget bill is expected to add at least $3 trillion (£2.2 trillion) to the US's already eye-watering $37tn (£27tn) debt pile. There is no shortage of critics of the plan, not least Trump's former ally Elon Musk, who has called it a "disgusting abomination".

The growing debt pile leaves some to wonder whether there is a limit to how much the rest of the world will lend Uncle Sam.

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[–] CMahaff@lemmy.world 8 points 3 hours ago

The worst part of the debt is that nothing good was done with it.

If you use that money to implement a national healthcare system, or fix the national infrastructure, or stabilize social security, or figure out child care, or work on affordable housing, or fix the cost of education, or invest in renewable energy, etc. then maybe it's worth it. Hell, you might even end up net positive in the end with all the good done to society in the long run.

Instead, all of these things are even worse than before while most of the money was spent on a bunch of useless wars and tax cuts for the rich.

And now, there's no more easy money to be borrowed to fix anything.

[–] Bluefalcon@discuss.tchncs.de 9 points 5 hours ago

People need to understand that the debt is not the issue. It's healthy to run a national debt. The massive problem is the dollar is being run into the ground. We are losing allies left and right which compounds your debt. He is fucking us on both sides.

[–] Clent@lemmy.dbzer0.com 4 points 3 hours ago (1 children)

US is going isolationist. Our debt becomes the worlds problem.

We're trying the single guy life for a while again. So rest of the world we're breaking up, it's definitely us not you but we're leaving all our baggage to you and keeping some of the keys. You

Enjoy your orgies of on going cooperations and spirits of goodwill, you heathen scum.

[–] Bakkoda@sh.itjust.works 2 points 3 hours ago

Except for all the military bases literally everywhere.

[–] humanspiral@lemmy.ca 2 points 3 hours ago* (last edited 3 hours ago)

The $3.4T deficit increase projection, $340B/year is on top of the $1.9T projected deficit for 2025 prior to bill. The projected deficit for FY2035 is $2.7T. This is before golden dome, and other warmongering/Israel funding. 2025 and 2035 numbers are both about 6.1% of GDP.

GOP talking points have include the fantasy of growing at 3% (instead of 1.9%) annually to pay for the $340B/year increase, but at 6.1% deficit/GDP ratio, total debt increases as long as nominal GDP doesn't grow above 6.1%. Cutting healthcare, and population through deportations won't cause growth.

[–] Treczoks@lemmy.world 20 points 8 hours ago

With Trump weakening the trust in the dollar and people looking at the Euro as a new reference, the rates at which the US can borrow money is already going up. At 37tn borrowed, even a tiny uptick will cost a fortune or two. Which, unless the conservatives suddenly show fiscal responsibility (which they never did so far), will just increase the deficit.

[–] magnetosphere@fedia.io 2 points 5 hours ago

Yeah, I should worry… but with all the other shit that’s going on, my worry buffer is on overflow. I’m gonna pretend I didn’t read this.

[–] Alloi@lemmy.world 8 points 7 hours ago

handling it the only way i know how

[–] desmosthenes@lemmy.world 5 points 6 hours ago

at 123% years old long overdue; we always had a spending problem - too many defense hawks keeping their beaks wet

[–] Olap@lemmy.world 12 points 9 hours ago (1 children)

Trump understands that it doesn't matter about the debt. Who does he owe it to after all? The banks won't call the debts in, cause they don't need to, and if he devalues the dollar he sees it as a win for exports

[–] Part4@infosec.pub 17 points 9 hours ago (3 children)

'He' (the US) owe it in large part to the world, who were forced to buy us debt in order to buy oil. China is the biggest holder of US debt iirc.

The US's voluntary withdrawal from the post ww2 economic order (from which it profited greatly) has absolutely hastened and cemented this process.

This debt is coming due, the strength of the dollar has already dropped greatly, US interest rates will rise. The US dollar will be cheap enough to compete with India and China to be the world's factory (a major part of Trump's election campaign and success).

It won't happen all at once as the world will look to manage America's decline while trying to maintain as stable a transition as possible.

But please be aware, this debt is going to come due and it has absolutely been hastened by Americans voting for Trump a second time. Fore warned is forearmed. Good luck.

[–] Pringles@sopuli.xyz 2 points 3 hours ago

Japan is actually the largest US debt holder with over 1.2T. China is 4th iirc with around 750B.

[–] ryathal@sh.itjust.works 10 points 8 hours ago

China is the largest foreign holder, but the vast majority of the debt is owed domestically.

[–] Olap@lemmy.world 0 points 8 hours ago

I wouldn't bet on that. American military might is still untouchable, and America is still a huge oil producer

[–] danekrae@lemmy.world 4 points 8 hours ago
[–] theupsanddownsof@lemmy.world -2 points 8 hours ago

The lending should take into account the reduced defence spend the US is asking other regions to take up.