What really matters is the trust in the financial system behind the debt. Do other countries believe that the US can take out more debt in good faith? If yes, then this is fine.
In individual terms, this is much like having a mortgage. It’s a massive number, much larger than your annual income that you’ll be making payments on for ages. You can still get more debt (credit cards, auto loans, HELOC) because it’s expected that you’ll have a certain amount of debt. Your debt only becomes a problem when you show that you can’t pay it.
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And they have no interest in sharing, or paying off government debts.
All of the items listed should be spun off into their own respective organizations separate of the federal government IMHO
https://www.crfb.org/blogs/interest-costs-will-grow-fastest-...
When the Republicans hold power, this crisis will be exploited to cut Social Security for Gen X and younger and take an axe to other entitlement programs.
I'm getting into opinion territory now. Largely, the USA is such a dominate world power that it running into trouble on its debt would mean global repercussions. That unforeseen circumstance would have rippling effect around the world. At which point, it wouldn't really matter if the USA was affected. Everybody else would be affected too.
Still it makes me squeamish and makes me want to point out that just because we can't conceive of a threat unique to our particular position doesn't mean that one doesn't exist! But a lot of what drives me to think that is almost certainly just my own risk intolerant disposition, which again comes down to opinion.
An example: In early February, retail sales numbers came in strong. The stock market went down. Why? Because analysts know that strong retail means a lower likelihood of our central monetary planners lowering interest rates, and lower rates mathematically cause asset values to grow because you’re making the denominator smaller.
Stocks should not thrive on denominator changes, but on a growing numerator: earnings. Earnings reflect actual economic activity.
But most people have their economics education provided by this regime and think it’s totally fine for the market to be determined by interest rates instead of productivity.
https://www.victorpest.com/articles/what-humans-can-learn-fr...
Also from the sounds of it, and the fact you are both on HN and doing well in the market right now, implies you are in a pretty good position, compared to the general population.
To answer your question more directly, the market is doing well because both the metrics and mechanics of markets are heavily heavily gamed. The 1 trillion dollars that is being added to the US debt is going _somewhere_. You happen to be getting a piece of it which you think is great (understandably), but you can be assured that there are many people above you in the chain getting much bigger pieces, and people lower in the chain getting less and less.
A dog hanging around the table of warlords will be a lot better fed than the dogs whos owners just got their harvest taken from them.
You say you're getting richer. I'm getting poorer.
Want to give me some money to balance things out?
Probably not.
The rich don't care about the outcome for the rest of us. They're building bunkers. You should do the same if you can. Sam Altman, or Sama, as people affectionately call him, has guns, anti-biotics, etc. stockpiled in a remote bunker where he can survive the collapse of society.
This bothers a lot of people but it doesn't bother me. I see it so often that it feels like a flamebait tactic to elicit envy.
It seems like you weren't really asking an objective question of 'why this is happening' but rather a subjective one of 'why should I care, I'm doing fine'
It's a valid question, why should you care, if you are doing well in this moment. I can't answer it for you.
The second one answers the first.
You can't have both - either you're part of a community, or you're on your own.