Or the deficits don’t matter thing lol

Domestically held debt is nothing more than promises to pay future interest to US bondholders. Foreign debt is another story, but most of our “debt” is domestic. A deficit that results in growing domestic debt simply means that we’re selling more of these promises to people and institutions at home.

Domestic debt mostly matters in that it represents money that is “tied up” rather than circulating within the economy for more productive use. It’s a little more complicated since 20% of the “owners” are internal to the government, such as Social Security. And there’s also institutions like mutual funds. But half is domestic private ownership.

If anything, the size of the deficit simply indicates that USD should be valued lower than it currently is, as there’s too many existing claims on future dollars. People bought those claims assuming that the dollar wouldn’t continue to weaken, but that was apparently a mistake.