The issue isn't the debt. Debt can be paid off.

The issue is that there's a complete collapse in it's ability to pick good leadership, or at least leadership that can meet the bar of 'doesn't piss on the floor', and no path for course-correction from it. It's in the 'everyone plunder as much as you can carry' stage, and nobody cares.

(Which also means that whatever that debt will be buying will more likely than not, be incredibly stupid, and likely self-destructive.)

▲

piva00 11 hours ago | parent [-]

Debt can be paid off until it can't, US's budget expenditure on interests has tripled since 2020, it is larger than their expenditure on the military now.

The 10-year bond yield is not controlled by the Fed, if it keeps raising the interests payment will continue the crushing of the budget. The USA currently depends on debt, it doesn't collect enough taxes to cover expenses as it is, with interests raising on an even larger debt amount there's no way out except for raising taxes to plug the gap. Any American politician who raises taxes will be out of a job, it's one of the most sensitive topics for Americans so it will only be done when the problem is out of hand.

Of course, the USA can just print its way out of debt instead of raising taxes but at that point their bonds wouldn't be as attractive, inflation would also become a huge issue (probably the 2nd most sensitive economic topic for Americans).

As far as I know most empires had their pivotal moment when their debt crushed their power, it seems to be inevitable.

	▲	vkou 11 hours ago \| parent [-]
		> Debt can be paid off until it can't, > The USA currently depends on debt, it doesn't collect enough taxes to cover expenses as it is That's where the lack of 'good governance' comes in. Good governance would, as of 2026, require raising taxes. The US has plenty of capacity to pay, it's just that the people running it prioritize keeping capital owners happy over the long-term welfare of the country. You're right that actually raising taxes is political suicide. That's one of the reasons this dysfunction has no escape clause, but the past 10 years have piled on a lot of other reasons, too. It's one thing when a government is ignoring a financial timebomb, but is otherwise, trying to... Run the country like a country. It's another when it's ignoring a financial timebomb, while also running the country in the same way that a drunk runs a hurdle race.