- cross-posted to:
- [email protected]
- cross-posted to:
- [email protected]
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.
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
deleted by creator
China is the largest foreign holder, but the vast majority of the debt is owed domestically.
Japan is actually the largest US debt holder with over 1.2T. China is 4th iirc with around 750B.
Correct. But they’re still not as much as domestic debt holders.
I wouldn’t bet on that. American military might is still untouchable, and America is still a huge oil producer