Wharton finance professor sounds the alarm on soaring U.S. debt

[@supermash1]

The financial irresponsibility of government - all parties - over the last 30 or 40 years has been grotesque.

[@GK-qc5ry]

The scary thing is that every western govt cannot balance the books with in year tax and spend. It's continual deficits. What would society be like with balanced spend? Probably significantly different public services.

[@lilyanazeitunyan6994]

Financial markets exhibit patterns that recur over time. Arthur Grandi's book offers a systematic approach to stabilizing investments and explores investment opportunities, including in cryptocurrencies.

[@JL-fx2cd]

BS.. if Americans cut spending by 20 %, like good little Republicans, the economy u rely on would collapse. It's a pinzi scheme.

[@weho_brian]

he thinks the debt will double in 20 years? that's laughable, try 4

[@vitorfurtado3311]

“As share of gdp”

[@antoniot7928]

Imagine even one recession hitting in the next couple years.... gdp drops, we go back into borrowing and money printing, and by 2030, we are probably already at 200%+ debt to GDP ratio. I don't think anyone, even economist understand the grave danger we are in with this debt. It just takes a few countries to say "we don't trust buying this anymore" and the whole house of cards fall.

[@monkeysezbegood]

Rfk jr is the only candidate talking about this

[@YTSparty]

Because he has no record. It's easy to talk against big money, like military industrial complex, it's another to act against it.

[@Sam-sw5iu]

chase oliver as well. libertarians are pretty staunch on this

[@celestialfix]

Brilliant professor……he just figured out this is a problem.

[@jimwhitehead6265]

uhh yea the store clerk on the corner and the forklift driver on the docks realize the economic dangers too.

[@RobertEdits]

I’m the dock worker 🖐🏽

[@kfcheah5697]

Only a minority of the US people are worried about the high US debt.

[@bigpicturethinking5620]

Yes and as we know, minorities don’t matter.

[@matthewthompson6455]

I am in the minority

[@tagsoneveryting]

Yup. Many just want 'free' stuff. And vote for the persons promising the most 'free' stuff.

[@peterdangelo5882]

All is well, Dow to over 40,000 - to the moon, to the moon. Cut those rates. Borrow more money, yes yes yes

[@jackdoesengineering2309]

Read the creature from jekyll Island

[@YTSparty]

And cut taxes!! -Kudlow

[@Sam-sw5iu]

Thank you sir. Its ironic that cnbc put out a segment on us debt that made it seem as if it was ok. Its obvious there were no experts doing that segment and I very much appreciate esteemed people speaking their mind on this to try and create hype around preventative measures to stop relying on financial defaults and suffering to turn the tides of policy

[@AH-fm7rj]

Government has killed the free market. In a free market the dominant interactions are B2B and B2C. In the current market, they are B2G, G2B and G2C. So if government drops spending by 10%, S&P500 earning will go down also by 10%.

[@tayloreaves5658]

Why does everyone keep saying "worried in the long run". We are already here, and the problem is acute and spiraling out of control.

[@truefreedom9308]

they ave been sounding alarm for decades and crooks wont stop it

[@kinpatu]

Sounding the alarm now? A couple decades late. Hyperinflation is the only way out now.

[@rogergeyer9851]

Says your ilk for a good 50 years now, so there's that. Bringing back Gramm-Rudman would be an example of something that would help a LOT, and perhaps let us outgrow the debt over time. Of course, politicians won't WANT to do that until push comes to shove.

[@Sam-sw5iu]

that is the exact opposite approach that should be taken...

[@phillee8666]

There are two economic models for US to consider in handling the high debts. One is Japanese model, which is in recession but with extremely low interest rates. Another is Agentina economic model, which has extremely high inflation and interest rate. Which one is better, FED must have its own choice.

[@dohminkonoha3200]

Strong USD is double edged sword. It's good for consumers,but disaster for manufacturing business.

[@nickvin7447]

Stagflation is nearly here.

[@sammyvh11]

Tax electronic cash transfers theres billions per day. Put the money directly to pay down the debt. We are hurdling to austerity.

[@Xocolatben]

The debt is only an issue when it goes towards broad-based social programs, eg. student loan relief, but foreign aid and Military spending is bottomless? go away repugnicant ...

[@illegalsmirf]

Debts don't matter, let future generations pay

[@firstlast8258]

The future is now 🤓 🖕

[@Jackson-l3r]

The projected surge to $56 trillion over the next decade appears conservative, especially considering that few countries outside the US are investing in their bonds. Given this scenario, the probability of a collapse for a fiat currency burdened with over $30 trillion in debt, expected to soar to $100 trillion, becomes increasingly likely.

[@syedarmaghanhassan4652]

Can somebody explain professors concerns in a layman term? Why could the markets break?

[@firsargentum5920]

US debt becomes so high that it can't pay the coupons on its government bonds so it defaults causing its credit rating to tank which in turn causes anyone holding US treasuries to dump them triggering a stampede for the exit and the dollar plummetting in value which in turn triggers hyperinflation in the US leading to a massive deep depression with a concurrent global financial meltdown as the dollar will no longer be accepted as a key reserve currency and gold goes stratospheric.

[@Thatscrazyyourecrazy]

Also your 401k and other stocks will be plummeting when that happens. It’s like when your credit card debt reaches a level that no one can pay back because of interest, we are not there yet but need to not go crazy

[@erickanter]

@@firsargentum5920 That is inevitable considering the debt will only increase.

[@michaelboguski4743]

Debit Card or Credit Card ?

[@snaz27]

Yes

[@zoneofender1268]

in 1 year we went from 31T to 34-35T in debt, in 20 years we will be well over 100 trillion in debt.

[@erickanter]

We will crater before we hit 100 trillion. No one will want our treasuries anymore.

[@maryirwin6015]

But lets keep giving billions to other countries and don't forget student debt relief?

[@Austeve]

Let’s hike the rate so interests on debt will be higher for longer 👌

[@MegaPapa8888]

Already many commentors suggest not to buy bond with duration longer than 10 years due to debt problem.

[@jimwhitehead6265]

always go with commenters

[@AH-fm7rj]

@@jimwhitehead6265 They give free advice with good will🤣

[@erickanter]

I would not buy a bond with a duration longer than 10 years. No way in hell.

[@erickanter]

50 trillion in a decade . AWESOME!!!!!!!!!

[@pmoran9785]

Step 1 build a museum to house the national debt /make sure the outside has lots of flashing lights

[@cybergeek9152]

It's going to be biblical and jezuzs will ......

[@okieg8960]

It’s tripled in 4 years.

[@fffuu4444]

The debt level is a ticking time bomb waiting to explore, when that day comes, no one will be able to bail out America when it defaults, not even IMF, the scale and magnitude of the debt is too astronomical.

[@Paul-H-Wolfram6608]

It's laughable that he thinks the debt will double in 20 years, probably the US will be done within the next 7 to 10 years, we'll see.

[@axe863]

Not the debt level, the debt to gdp ratio which is actually worse that your position

[@qianwang4560]

lower immigration policy, let us pay for US

[@tarekadam9652]

This is comedy gold. These folks just dead pan it

[@bigpicturethinking5620]

Also when they drop the interest rates trillions will move to the market to get better returns.

[@huynguyentoantin]

Biden, get re-elected and keep spending like tomorrow is the end of the world

[@DavidEVogel]

True. Biden will soon ask for $50 billion to rebuilt Gaza.

[@Felix-op1rw]

trump did more to the debt than biden. Get your facts correct

[@peterbedford2610]

Lol. Horse left barn a few years ago

[@rohankapoor003]

a professor is academic. none of them know reality

[@davidlim5751]

sure. raise taxes on the healthy. when did cnbc become a republican wing.

[@rogergeyer9851]

To the extent it's popular with active investors, it has had a LOT of right wing viewpoints for decades. Not all right wing by any means, but like the WSJ. for example, plenty of right wing views. I'm a moderate who votes on issues, not parties, so I'm willing to call them as I see them, BTW.

[@JxLx2022]

Hopefully the Federal Reserve doesn't buy those bonds. if they do.. The US Dollar will be worthless...

[@bobbyb.6644]

Force Feeding Electric cars ( most poor at best) has hurt the “ Controlled Growth of Tesla” ? Tesla balanced their recharge stations and Service Capabilities ? 🤔

[@carkawalakhatulistiwa]

Give more money to Ukraine

[@ahmedalsharman]

35 Trillion 😂😂. Who buys debt?

[@erickanter]

Japan , China etc in the form of treasuries.

[@lmankj]

MMT…

[@haywoodjablowme2972]

were screwed

[@snaz27]

Here you go kids and grandkids, enjoy living in squalor while paying back our debt, cheers... 🍻🤣

[@alexanderivkin7086]

It´s not 1,6 trillion, 1,8 trillion per year!!! It´s 1 trillion EVERY 90 DAYS!!!!!!

[@subham125]

Tell your President to stop wasting money behind the others war games🤦‍♂️😏🤣

[@doesntmatter3068]

WHAT

[@thisguy73]

Trump will triple it 25-29 - make debt great again!!!!

[@Sololeveling222]

Congress is in charge of spending and printing money not the president

[@jacqueslucas8616]

No balls….or he wasn’t allowed to give his real opinion to get on dem cheering cnbc…”we can afford our debt right now”….😂😂😂

[@Hofftimusprime1]

We can grow out of it. Ha. We can always make more money. It’s all about controlling the money supply. The government doesn’t need out taxes. The treasury can print what it needs. Keep the money circulating that’s the magic of the economy.

[@Sololeveling222]

That's how you get out of control inflation

[@Lithiumbattery]

the fall of the roman empire. this is the opportunity for China to take taiwan 😂😂😂😂

[@surrelvision1538]

At some point, narkets will break. 20 years is optimistic. 10 may even be far-fetched. I'm planning on 5-7 max. #NoFreeLunches 💁🏽‍♂️📊📉 🌎

[@lmankj]

Markets will just continue to go higher, the “debt” has to flow somehwere.

[@Sololeveling222]

​@@lmankj That's how Venezuela got to %904 Inflation rate

[@erickanter]

@@lmankj Until buyers of our treasuries lose confidence and and say to hell with America.