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- Hacker News
- Slaps the hood of a cybertruck
This bad boy can hold a LOT of debt.
by sentrysapper - Not an American, but I would argue that this level while little bit of a concern is not a huge issue for a superpower that borrows in its own currency and has the military and economic might to crush any party (sovereign or corporate) attempting move away from that system.
You guys are too powerful.
by sumanthvepa - Everyone hates regulations until they realize every regulation actually does something. Everyone hates spending until they realize the money goes towards something.
None of this will get solved until a crisis
by FergusArgyll - It's hard to imagine a political solution to this problem. Both parties are playing chicken, each daring the other to fall on their sword for the good of the country, with neither willing to commit political suicide. Republicans don't have the stomach for the (unpopular) spending cuts that would be required to reduce the deficit, and of course they don't want to raise taxes. They reasonably fear that, even if they gutted the core programs to balance the budget, the next Democrat administration (whose election would be essentially guaranteed by massive cuts) would turn around and use the savings to fund new and exciting ways to buy votes. On the flip side, Democrats shriek in horror at the slightest spending cuts and even advocate for massive increases in spending ("Medicare for all" alone would cost another $1.5 Trillion per year) yet they are afraid to acknowledge, let alone levy, the (unpopular) broad-based taxes required to cover the current deficit, let alone pay for new programs.
It is the ultimate tragedy of the commons.
by marcusverus - This Is Probably Fine! by Patrick Boyle - https://www.youtube.com/watch?v=5nvsDmwZWdM - May 29th, 2026
> US 30-year Treasury yields just hit 5.2% — the highest level since July 2007. UK gilt yields are at levels not seen since 1998. Japanese bond yields are at record highs. Something is happening in global bond markets, and it's not just about inflation. In this video I explain what's driving the global rise in long-term borrowing costs, why the era of free money is probably over, and what fiscal dominance means for central bank independence. I cover the history of US presidents fighting with the Federal Reserve — including LBJ shoving his Fed Chair against a wall — the 1970s UK economic collapse, the Liz Truss mini-budget crisis, the role of private credit and off-balance-sheet SPVs in financing the AI boom, and what all of this means for the new Federal Reserve Chair Kevin Warsh.
by toomuchtodo - Debt-to-GDP ratio is useful for comparing the debt loads of two countries, but not terribly useful in assessing the serviceability of debt for a single country.
That is, suppose two countries both have $100B in debt. One of them is a small island nation; the other is a global superpower. Obviously the global superpower will be better able to handle that - dividing by GDP helps make that clear.
However, this simple division doesn't tell you some important things. How much of the debt comes due very soon? It's worse if the answer is "most of it." How was it incurred? "Winning a war" is much better than "losing a war."
The United States has lots of debt, and personally I'm worried about the long term serviceability of it. But the ratio to GDP isn't why!
by bbayles - It always gives me an ominous feeling to see these headlines. It's like we're walking out further and further on a frozen lake. "Hey, it's OK, the ice hasn't cracked yet! Let's keep going!"by Taikonerd
- Upsetting how we are reaching these lows while the administration is accusing everyone else of wasting taxpayer money except for themselves. At least under previous administrations you would get something for your money, like science funding and healthcare for the needy, not just bombing runs and posturing.by juujian