US debt tops 40 trillion is the end near?

[philipma1957]

https://finance.yahoo.com/economy/policy/articles/us-debt-crosses-40-trillion-200824238.html?


40,000,000,000,000/330,000,000=121,212.121

each American's piece of that is $121,212.12

quite impressive.


So when does the dollar collapse and BTC take over?

[pooya87]

Ever since this historical record was broken (or basically as soon as it was in sight and the news came out) bitcoin has been rallying. It is already 12% up and has touched $70k and the momentum seems to be getting stronger for the time being.

Fiat failure == Bitcoin success

[PostQuantumBTC]

No country in the world has debt like the US, but the country has wise leaders because US is a very great country except the war which is not necessary that they are fighting with Iran.

The debt is not the reason I will not save USD, the reason is generally because of what government are doing to fiat and not only US dollar alone. These currencies are devalues by the government as usual all over the world.

More longer time means inflation and fiat will be devalued again.

[Zaguru12]

Fiat failure == Bitcoin success

I agree with this, I think the news around the US dollar dropping this week already is a signal that bitcoin acts a strong inverse currency to the fiat. Many will say it’s coincidence but let’s be realistic coincidence like this are not usual because whenever the fiat faces crises then we see bitcoin gaining. This shouldn’t be mistaken as bitcoin looking to replace the fiat currency rather investors now have a perfect alternative to an highly inflationary currency like the fiat.

If US debt continues to grow, people lose confidence on holding or using it as a saving and this is great one for bitcoin because it increases its demand and even adoption

[welovebit]

Ever since this historical record was broken (or basically as soon as it was in sight and the news came out) bitcoin has been rallying. It is already 12% up and has touched $70k and the momentum seems to be getting stronger for the time being.

Fiat failure == Bitcoin success

Fiat going to be face many challenges because things are getting worst for many due to this economical situation which is not easy to handle for anyone now Bitcoin is already above $72K mean pressure is mounting and Bitcoin strength working.
Can Bitcoin keep this momentum for long time because whales always make their move after having good move from bitcoin they are having their own interest and greediness as things are going I am sure now its going to be have good level before September last months of year always have good sentiments.
Bitcoin keeps going; it's a good time to stay on the rise.

[Accardo]

The bad thing with US debt increase is the uncertainty of what government and private companies do with the borrowed money, it's very certain to see US debt rate double in less than a decade, if republicans continue to go into war like they're doing with Iran. I saw a video of Hegseth asking for additional $1trillion dollars to finance the war against Iran, probably the 1 trn he previously took from congress yielded nothing close to a trillion Dollars. Secondly, at the very end of this ongoing AI race, which the US government is not so sure of how much money they'll make from it, Dollar will collapse.

[Curious T]

If US debt continues to grow, people lose confidence on holding or using it as a saving and this is great one for bitcoin because it increases its demand and even adoption

I doubt people will lose confidence in the US dollar simply because the US debt has increased. It has been high for a long time, and nothing happened. It might create a demand for bitcoin, but it won't be significant enough to cause a loss of confidence in the USD. I don't know what caused the recent demand, but if it's the news, then it will just be a short while. With time, the dollar will gain momentum again. Although I didn't notice much change in the price of the dollar.
No need to celebrate fiat losing value anyway. Even though we might have a way to protect our savings with Bitcoin, we would still suffer inflation.

[Frankolala]

The debt is not the reason I will not save USD, the reason is generally because of what government are doing to fiat and not only US dollar alone. These currencies are devalues by the government as usual all over the world.

I would rather, save my future savings in bitcoin instead, of USD because bitcoin is a good store of value overtime and gives you additional profit while, Fiat is the opposite, a physical shitcoin. This is the difference between the rich mindset and the poor. The poor prefers to save in Fiat and become broke overtime. The rich put their money into long term valuable assets that generates more profit for them and get richer overtime. However, if your country fiat currency has no value, USD is good for short term savings.

[philipma1957]

Fiat failure == Bitcoin success

I agree with this, I think the news around the US dollar dropping this week already is a signal that bitcoin acts a strong inverse currency to the fiat. Many will say it’s coincidence but let’s be realistic coincidence like this are not usual because whenever the fiat faces crises then we see bitcoin gaining. This shouldn’t be mistaken as bitcoin looking to replace the fiat currency rather investors now have a perfect alternative to an highly inflationary currency like the fiat.

If  As the US debt continues to grow, people lose confidence on holding or using it as a saving and this is great one for bitcoin because it increases its demand and even adoption

I fixed your error.

The only way the USA stops increasing debt is we all die in a war.

The USA debt will be over 50 trillion in under 5 years

it went from 30 to 40 trillion during the 2022-2026 time frame
it went from 20 to 30 trillion during the 2017-2022 time frame
it went from 10 to 20 trillion during the 2008-2017 time frame

one reason the usa does this is it hurts

fairly rich
high middle class
middle class
poor

way way way way more than it hurts the super rich

so the super rich like the move.

Ie if I have 2 billion and inflation doubles I am worth 1 billion but still doing fine
but if I have 10 million and drop to 5 million it will hurt as I could run out of money
and if I have 1 million and drop to 500k it will hurt and I likely will run out of money
and if I have 10k and drop to 5k I am really hurting

[mindrust]

Ever since this historical record was broken (or basically as soon as it was in sight and the news came out) bitcoin has been rallying. It is already 12% up and has touched $70k and the momentum seems to be getting stronger for the time being.

Fiat failure == Bitcoin success

The number isn't that important imo. Does it matter whether it is 40 trillion or 140 trillion as long as it stays same for a decade? The problem is the acceleration rate of the debt. It is getting bigger and bigger and it is happening very fast. Bitcoin indeed looks like a safer bet compared to FIAT since it has limited supply and lots of demand. FIAT is sought after too but the central banks are printing more than the actual demand and we don't have problem with bitcoin.

[philipma1957]

Ever since this historical record was broken (or basically as soon as it was in sight and the news came out) bitcoin has been rallying. It is already 12% up and has touched $70k and the momentum seems to be getting stronger for the time being.

Fiat failure == Bitcoin success

The number isn't that important imo. Does it matter whether it is 40 trillion or 140 trillion as long as it stays same for a decade? The problem is the acceleration rate of the debt. It is getting bigger and bigger and it is happening very fast. Bitcoin indeed looks like a safer bet compared to FIAT since it has limited supply and lots of demand. FIAT is sought after too but the central banks are printing more than the actual demand and we don't have problem with bitcoin.

0 to 398 billion took from 1776 to 1971

to be fair
I used Nixon taking us off the gold standard which is when I belief debt really took off

398 billion to 10 trillion took from 1971 to 2008 
10 to 20 trillion took from 2008 to 2017 ........... 9 years
20 trillion to 30 trillion took from 2017 to 2022   5 years
30 million to 40 trillion took from 2022 to 2026.  4 years

it is easy to Biden and trump smoked us bigly those 4+4+2=10 years

we added 20trillion to move from 20 trillion to 40trillion.

I see a real move to kill off the usd happening and as you said speeding up.

[Woodie]

So when does the dollar collapse and BTC take over?

The cracks only show when the citizens start to feel the price of basic needs goes up.. all thanks to inflation, btw I think if Iran succeed with it's pay with Yen or Bitcoin in an effort to drop dependence of the petrodollar this would weaken the dollar that's why Trump certainly can't afford to lose his grip on this because the ripple effect could be damaging .. but whatever happens BTC better remain a parallel currency to avoid getting into the political arena.

No country in the world has debt like the US, but the country has wise leaders because US is a very great country except the war which is not necessary that they are fighting with Iran.

Don't want to push this to become a political debate, but his own citizens wouldnt agree to this wise leader statement 

[Nanga Parbat]

Ever since this historical record was broken (or basically as soon as it was in sight and the news came out) bitcoin has been rallying. It is already 12% up and has touched $70k and the momentum seems to be getting stronger for the time being.

Fiat failure == Bitcoin success

Bitcoin was waiting for breakthrough like this in last few months sentiments was not favorable but now this news make things on positive way market behavior is also looking good lets enjoy how things will be work because fiat is now having not good time.

Hopefully now this will keep $70K to $73K for sometime because if its works then next target is also going to be achievable easily in coming weeks fiat losing its long time control due to wrong policies and poor economical situation Iran war make things worst high inflations will be bring more pressure this will also give good support to Bitcoin. Trump needs to rethink about his policies about Iran otherwise they will be face more troubles which are going to be headache in long run for them.

[STT]

I think the debt cost of this 40 trillion is per year another 1 trillion interest so for sure it will accelerate, its now clearly a parabolic trend.  The feedback effect of the uncontrolled debt is what rips it all apart, Jenga or however you like your analogies; this is not maybe its certain failure.

 However I did hear that scenario like 20 or more years ago, before BTC or the great financial meltdown in 2008 it was apparent the policy and debt were especially incorrect.   Since then I think the nation has shouldered the burden, people are poor who don't deserve to be & who work maybe multiple jobs and still cant rest in good health and wealth.
  To some it will be obvious its already a failing situation and others celebrate and gain from the debt, BTC might go up with weak dollar but I cant say I expect a good conclusion overall from this continual self destruction.

Inflation is exported when its the reserve currency, the further from the source the greater the poverty effect.  Why it doesn't fall over is part of the mystery but I don't wish for that.

[philipma1957]

the 40 trillion is a mortal lock to be 50 trillion by 2029 the last ten years usa has gone 2 trillion worse each year.

it will easy peasy do 3.33 trillion a year worse so three years is 3x3.33=9.99 or 10 trillion more than now.

[BALIK]

No country in the world has debt like the US, but the country has wise leaders because US is a very great country except the war which is not necessary that they are fighting with Iran.

If they have such wise leader, then why have they allowed the national debt to grow to $40T and become the most indebted country in the world, as you said?

There's no denying that they are a superpower, but much of that power and influence came from starting wars and exploiting the resources of other countries, not because they had brilliant leaders.

The debt is not the reason I will not save USD, the reason is generally because of what government are doing to fiat and not only US dollar alone. These currencies are devalues by the government as usual all over the world.

More longer time means inflation and fiat will be devalued again.

However, debt is one of the main reasons governments debase their own currencies.
And as pooya87 said, Fiat failure= Bitcoin success.

[Don Pedro Dinero]

No, the end is not near because most countries are in a much worse state. It’s now 40 trillion, which we find an outrageous figure, and next it will be 100, 500, even 1 quatrillion or whatever it takes.

Ie if I have 2 billion and inflation doubles I am worth 1 billion but still doing fine
but if I have 10 million and drop to 5 million it will hurt as I could run out of money
and if I have 1 million and drop to 500k it will hurt and I likely will run out of money
and if I have 10k and drop to 5k I am really hurting

Not really. If you have 2 billion you'll probably have 4 o 5 billion after inflation doubles because you will have access to very cheap credit (Cantillon Effect) and you'll invest in assets that beat inflation. Is Musk poorer than 10 years ago due to inflation? Buffet? Gates?

The ten million one will have some room for manoeuvre to beat inflation as well, but those who are hardest hit are those who rely solely on their jobs to make a living and cannot invest in assets that beat inflation, nor do they have access to cheap credit.

[KingsDen]

No country in the world has debt like the US, but the country has wise leaders because US is a very great country except the war which is not necessary that they are fighting with Iran.

I have been criticising my country for borrowing too much;
We borrow from US,
We borrow from China,
We borrow from IMF.
But how does the world economics work; why will US be in debt and still lend to Nigeria?

[free-bit.co.in]

I doubt people will lose confidence in the US dollar simply because the US debt has increased. It has been high for a long time, and nothing happened. It might create a demand for bitcoin, but it won't be significant enough to cause a loss of confidence in the USD. I don't know what caused the recent demand, but if it's the news, then it will just be a short while. With time, the dollar will gain momentum again. Although I didn't notice much change in the price of the dollar.
No need to celebrate fiat losing value anyway. Even though we might have a way to protect our savings with Bitcoin, we would still suffer inflation.

Whether you believe it or not, confidence in USD has been eroding for a long time. This isnt something new. US Treasuries are no longer the world's primary reserve asset, and USD's dominance in international trade has declined in recent years.

If that's not a loss of confidence in the USD, then what is?

Nobody is celebrating the decline of USD. But whether you admit it or not, if you hold USD, your purchasing power will almost certainly decline over time. By contrast, your purchasing power could increase significantly if you hold Bitcoin.

[Tongley]

No country in the world has debt like the US, but the country has wise leaders because US is a very great country except the war which is not necessary that they are fighting with Iran.

The debt is not the reason I will not save USD, the reason is generally because of what government are doing to fiat and not only US dollar alone. These currencies are devalues by the government as usual all over the world.

More longer time means inflation and fiat will be devalued again.

It is not easy for the dollar to fall, perhaps in the next few years we may see a significant decrease in the demand for the dollar, but it may not be easy to completely fall. Yes, it is true that Bitcoin is the best alternative to the dollar or we can say that Bitcoin is better than the dollar. But in terms of financial transactions and large holdings, there seem to be several things involved.

If we look at the United States, we will see that they have many things as an alternative. Such as large companies and their own power. Whenever we see the demand for the dollar decreasing, we may see a game of political chess. For example, by running some propaganda and buying and selling the holdings of a few large companies, they can create a market instability and break the trust of Bitcoin among everyone and make everyone dependent on the dollar again.

Maybe the United States can use Bitcoin as a tool for the debt council. You can buy Bitcoin at a low price while the market is falling and then advertise it and make everyone interested in buying Bitcoin, increasing the price of Bitcoin and paying off the bank's debt.
If we don't see any wrong moves by their US leaders, it might be very difficult for the dollar to fall.