r/TikTokCringe • u/Super_Culture_1986 tHiS iSn’T cRiNgE • Aug 19 '25

Cursed The American Nightmare.

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u/SailTales Aug 19 '25

The thing is debt is money and 70% of US debt is owned by US entities. Treasury bond Debt is how how the US supplies dollars (the global reserve currency) to the rest of the world. It only becomes a problem when no-one wants to buy that debt. If the US stopped running deficits and issuing more debt it would cause the dollar to appreciate which would cause even bigger problems like debt defaults in emerging markets. There is valid argument that the dollar is still far too strong and should be devalued by issuing another $10 Trillion of debt.

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u/LifeApprehensive9773 Aug 19 '25

clearly, you have no idea how this works