As of 2026, the U.S. federal deficit is projected to be approximately 6.4% of GDP.
This year we spend 6.4% of GDP more than the federal government takes in. That’s excessive and out of control but we’re not spending more than GDP.
Our accumulated debt on the other hand is that and rising. Countries get a lot of leeway on debt and us being reserve currency means we get even more leeway. But already interest on the debt is becoming our largest expense, making us be able to afford less and less.
And at some point we’ll hit a wall. Not knowing where the wall is doesn’t mean it’s not there, it just means we can’t predict it until we smash our heads against it. And some idiot thinks it’s ok to monkey with the US dollar being the world’s reserve currency? If that idiot succeeds, that invisible wall of insolvency suddenly jumps closer
The tighter we try to hold that petrodollar, the faster it’s squeezing out of our grasp. I have no doubt that’s what Trump was attempting but he’s just speeding up the end. Maybe that’s also good from his perspective because he only cares about himself and the next administration is likely to feel the pain
It’s important to distinguish debt from deficit
This year we spend 6.4% of GDP more than the federal government takes in. That’s excessive and out of control but we’re not spending more than GDP.
Our accumulated debt on the other hand is that and rising. Countries get a lot of leeway on debt and us being reserve currency means we get even more leeway. But already interest on the debt is becoming our largest expense, making us be able to afford less and less.
And at some point we’ll hit a wall. Not knowing where the wall is doesn’t mean it’s not there, it just means we can’t predict it until we smash our heads against it. And some idiot thinks it’s ok to monkey with the US dollar being the world’s reserve currency? If that idiot succeeds, that invisible wall of insolvency suddenly jumps closer
We have already pass the wall. We can only maintain our lifestyle if we maintain works energy control. If we lose the petroldollar it’s game over.
The whole war was because it’s this.
The tighter we try to hold that petrodollar, the faster it’s squeezing out of our grasp. I have no doubt that’s what Trump was attempting but he’s just speeding up the end. Maybe that’s also good from his perspective because he only cares about himself and the next administration is likely to feel the pain
Last ditch effort of a failing country. Next is either ww3 or civil war if history has anything to say about it.
Why not both? /s