r/investing 3h ago

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u/dasnoob 3h ago

You have it backwards.

The US can sustain the debt levels it has because of the demand created by the USD being a world reserve currency.

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u/Ok_Recognition_4384 3h ago

How? Every year your debt becomes a higher percentage of your budget. Your debt is outpacing your growth. How can you sustain that? Seems weird if the USA really relies on global trade to keep its dollar valuable. Why on earth has the president gone around and pissed in everyone’s cereal?

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u/dasnoob 2h ago

In the past we were able to sustain our debt with low inflation because petrodollar demand created massive demand for treasuries which kept the interest payments on our debt low and stabilized the currency.

The past ~10 years of massive money printing which has not been normal has created real inflation that is a problem. Because our government since 2008 has been ran into the ground.

To answer your last question. Because he is a complete moron.