The national debt quietly plowed through the $38.2 trillion level on Tuesday, adding $2 trillion more in red ink in just 4.5 months after Trump's Big Ugly Bill became law

 

The period is also marked by the phony utopianism of the libertarian Americanists who exalt the individual and deny that there are any limits

 In their idealism they are little different than Zohran Mamdani. 

... The United States is undeniably the beacon of hope for the world because it’s founded on the value of the individual and the ideals articulated in the Declaration of Independence. We believe every person should have an equal opportunity to pursue their dreams and determine their destiny.

For free people, there is truly no problem too big or care too small. Free people don’t wait on a government middleman to solve their problems or redefine what’s possible. ...

More.

The choice isn't between this Americanism and Zohran Mamdani. They aren't really competing visions.  

On the contrary, both are impotent in the face of intractable problems.

New York City, with an annual budget of in excess of $100 billion, needs to spend well in excess of $50 billion to fix its water and sewer systems which limit population growth and drive up rents. The place is already $125 billion in debt. In his wildest dreams Mamdani will increase taxes "only" $10 billion, about which they are having a fit.

The so-called free people of the United States also have met problems which are truly too big for them, one in the Black Sea, one in the Red Sea, and one in the South China Sea, about which $38 trillion in national debt keeps them from doing very much.

Every person should have opportunity to determine their destiny, they prattle on, except for the people of Ukraine, of Israel, Vietnam, the Philippines, Malaysia, Brunei, and Taiwan, who will just have to do it themselves. How long does this list have to get before it includes you, too? Or are you on it already? 

Their self-indicting answer?

So-called fiscal hawk Republican Jodey Arrington (TX-19) won't run in 2026, says Trump is committed to reversing the curse of public debt but doesn't know where the president is lol

 

Let me tell you where you are, Jodey. 

Four months after you passed the Big Ugly Bill under reconciliation rules, rules which Mike Crapo in the Senate turned on their head, you are a whisker away from another $2 trillion in debt added to the public debt since July 4th.

Jodey's just puttin' lipstick on the pig and saying, See ya! 

 

... Arrington said he had faith Republicans in Washington would pick up his mantle of fiscal hawkishness, or as he's often called it, "reversing the curse" of public debt.

"The president's committed to it, he talks about it all the time. He's actually doing something about it with very difficult decisions, not politically popular decisions. This is all about political will," Arrington said. "Trump's doing it. Mike Johnson is committed to it… And we have a growing number of fiscal hawks who are absolutely dogged on this issue."

But he said he would continue to push for further fiscal reforms for his remaining year on Capitol Hill, including another budget reconciliation bill to follow up on the big, beautiful bill.

"I don't know where the Senate Republicans are. I don't know where the president is and can't speak for the White House. But the House is at the ready," Arrington said. "It's been our most consequential tool to support the president and the strength of the country, and I don't see any reason we wouldn't utilize it to its fullest extent."

More. 

National Debt hits $38 trillion

 Nov 21, 2024: $36.034T

July 4, 2025 ONE BIG UGLY BILL 

Aug 11, 2025: $37.004 T

Oct 21, 2025: $38.019 T

 

 

The top 10% wealthiest Americans are 47% richer after five years, up $36.25 trillion

Current U.S. Debt to the Penny is $37.46 trillion, he he.

They say we could never pay it back. 

 

The fiscal year is rapidly coming to a close, and Trump has spent us $1.973 trillion deeper into the hole with one month left to go, compared with Biden's last year at $1.897 trillion through August

 

Meanwhile ...

... [Charlie] Kirk, who had millions of social media followers, co-founded the non-profit Turning Point USA in 2012 as a teenager, which he dubbed a 'national student movement.' 

Its mission is to 'identify, educate, train and organize students to promote the principles of fiscal responsibility, free markets, and limited government.' ...

 

Treasury Secretary Bessent tells a whopper

 

Bessent: Tariff Income And Fiscal Improvement Have Made The U.S. Bond Market The Best Performing In The Developed World

 

These jokers have added $1.2 trillion to the national debt in TWO months.

 

The 10-year US Treasury has returned 1.013% nominal in the last twelve months, -1.419% real. 

Trump adds $1 trillion to the national debt in record time and S&P Global underscores its own irrelevance by maintaining the U.S. AA+ credit rating

 Trump tariff revenue expected to offset tax bill impact, S&P says in U.S. credit rating hold

... "We could lower the rating over the next two to three years if already high deficits increase ..." lol.

 These people are afraid of Trump.

They don't want to be singled out for Trump's daily Two Minutes Hate.

They don't want to be the next Jerome Powell, or Lisa Cook, or Volodymyr Zelensky.

Meanwhile year to date the Trump deficit is running $112 billion ahead of Biden's last deficit. DOGE so-called spending cuts and Trump Tariffs have done nothing to reduce it.

 

 

 

Trump just added $1 trillion to the national debt in record time, 32 business days after the big ugly bill became law

 

26 business days after the big ugly bill

 

The chutzpah: House Freedom Caucus frauds deliver debt upon debt, claim they delivered for taxpayers

 

 House Freedom Caucus: How We're Delivering For Taxpayers in July 2025 | Opinion

... By applying relentless pressure, providing education to the public, and offering alternative solutions, the HFC helped secure significant savings for the American people in the final piece of legislation. ... The national debt now stands at a staggering $37 trillion and is rising by nearly $2 trillion annually.                

In fourteen business days the national debt is up half a trillion dollars to $36.7 trillion from $36.2 trillion on July 3rd.

Fourteen days. 

They can't even tell the truth about that. 

The US Senate's biggest phony, Republican Senator Ron Johnson of Wisconsin, boasted he had enough votes to stop Trump's bill, but voted for it all three times in the end

 

 

The roll call votes are here, here, and here.

June 4, 2025, here:

Republican Sen. Ron Johnson on Wednesday blasted President Donald Trump’s “one big, beautiful bill” as “immoral” and “grotesque,” and reiterated that he will vote against it unless his GOP colleagues make major changes.

“This is immoral, what us old farts doing to our young people,” Johnson said on CNBC’s “Squawk Box” after sounding alarms that the massive tax-and-spending-cut bill would add trillions of dollars to national deficits.

“This is grotesque, what we’re doing,” Johnson said. “We need to own up to that. This is our moment.”

“I can’t accept the scenario, I can’t accept it, so I won’t vote for it, unless we are serious about fixing it,” he continued.

Johnson has been among the Senate’s loudest GOP critics of the budget bill that narrowly passed the House last month.

Johnson and other fiscal hawks have taken aim over its effect on the nation’s debt. The nonpartisan Congressional Budget Office estimated later Wednesday that the bill would add $2.4 trillion to the national debt over the next decade.

Johnson has proposed splitting the bill into two parts, though Trump insists on passing his agenda in a single package.

“The president and Senate leadership has to understand that we’re serious now,” Johnson said of himself and the handful of other GOP senators whose opposition to the bill could imperil its chances.

“They all say, ‘Oh, we can pressure these guys.’ No, you can’t.”

Republicans hold a narrow 53-47 majority in the Senate, so they can only afford to lose a handful of votes to get the bill passed in a party-line vote.

“Let’s discuss the numbers, and let’s focus on our children and grandchildren, whose futures are being mortgaged, their prospects are being diminished by what we are doing to them,” Johnson said.

Johnson’s comments came one day after Elon Musk ripped into the spending bill, calling it a “disgusting abomination” that will lead to exploding deficits. The White House brushed aside Musk’s comments.

Johnson said Musk’s criticisms bolster the case against the bill.

“He’s in the inside, he showed … President Trump how to do this, you know, contract by contract, line by line,” Johnson said of Musk. “We have to do that.”

Johnson said his campaign against the bill in its current form is not a “long shot,” because he thinks there are “enough” Republican senators who will vote against the bill.

“We want to see [Trump] succeed, but again, my loyalty is to our kids and grandkids,” he said.

“So there’s enough of us who have that attitude that very respectfully we just have say, ’Mr. President, I’m sorry, ‘one, big, beautiful bill’ was not the best idea,” he added.

 

Republicans are doing an end-run around the Senate parliamentarian to make novel use of the current policy baseline instead of current law, asserting a Democrat precedent from 2022

 Senate GOP declines to meet with parliamentarian on whether Trump tax cuts add to deficit

... Republicans, however, say that the parliamentarian doesn’t have a role in judging how much the tax portion of the One Big Beautiful Bill Act would add to the deficit within the bill’s 10-year budget window or whether it would add to deficits beyond 2034.

They argue that Budget Committee Chair Lindsey Graham (R-S.C.) has authority under Section 312 of the Congressional Budget Act “to determine baseline numbers of spending and revenue.”

Ryan Wrasse, a spokesperson for Senate Majority Leader John Thune (R-S.D.), pointed to a Budget Committee report published when Democrats were in the majority in 2022 stating that the Budget Committee, through its chair, makes the call on questions of numbers, not the parliamentarian.

Graham received a letter from Swagel [CBO Director] on Saturday stating that the Finance Committee’s tax text does not exceed its reconciliation instructions or add to deficits after 2034 when scored on the “current-policy” baseline that Graham wants the Joint Committee on Taxation (JCT) and CBO to use.

Taylor Reidy, a spokesperson for the Budget panel, asserted on the social platform X that “there is no need to have a parliamentarian meeting with respect to current policy baseline because Section 312 of the Congressional Budget Act gives Sen. Graham — as Chairman of the Budget Committee — the authority to set the baseline.” ...

All you really need to know is that whatever these yokels end up passing, the country will be $50-$60 trillion in debt ten years from now because they spend too much and tax too little.

Interest on the national debt has to be paid out of current tax receipts, crowding out other spending

 Defense department spending in fiscal 2025 is estimated to clock in at $873 billion.

These lunatics are their own worst enemies

 The guy with the common sense about the national debt who stands in the way of Trump's Big Beautiful Bill wants to re-litigate 9/11.

Sen. Ron Johnson on 9/11: "A Lot Of Legitimate Questions Remain Unanswered"

House Speaker Mike Johnson's spending bill is in big trouble with the US Senate's Ron Johnson

 

Sen. Ron Johnson: Spending Cuts In House GOP's Budget "Basically A Rounding Error," Adds $22 Trillion In Debt

... You have heard people talk about zero-based budgeting. I'm talking about a budget of $5.5 trillion to $6.5 trillion. Those are options from Clinton, Obama, and Trump (first term), where you just take their actual outlays, plus them up by population growth and inflation, leaving Social Security, Medicare, and interest untouched. That would leave you somewhere between $5.5 trillion and $6.5 trillion. So you start there, but you have to do the work, and you need the time to do the work. ... I think we have enough [senators] to stop the process until the president gets serious about spending reduction and reducing the deficit.

USA loses last AAA rating, from Moody's, perfectly timed for after GOP can't move a budget out of committee lol

Moody’s downgrades U.S. credit rating, citing rise in government debt

... Moody’s had been a holdout in keeping U.S. sovereign debt at the highest credit rating possible, and brings the 116-year-old agency into line with its rivals. Standard & Poor’s downgraded the U.S. to AA+ from AAA in August 2011, and Fitch Ratings also cut the U.S. rating to AA+ from AAA, in August 2023.

“Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” Moody’s analysts said in a statement. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration.” ...

“... we expect federal deficits to widen, reaching nearly 9% of GDP by 2035, up from 6.4% in 2024, driven mainly by increased interest payments on debt, rising entitlement spending and relatively low revenue generation,” Moody’s said. ″We anticipate that the federal debt burden will rise to about 134% of GDP by 2035, compared to 98% in 2024.″⁣ ...

Moody’s officially rated U.S. bonds in 1993 for the first time, but had assigned a “country ceiling rating” of Aaa on the U.S. since 1949.

The chairman of the House Fweedom Caucus is calling for tax increases on the rich

 Not to reduce the deficit, but to pay for all the new Trump goodies.

$50 trillion in debt in ten years is a lead-pipe cinch.

 

Democrat Pete Aguilar (CA-33) predicted the House Freedom Caucus would cave to the Senate budget proposal, and every last one of them did lol

They have no principles. The national debt is going to soar just like it would have under Harris.

Spartz and Massie, the lone Republican Nay votes, are not members of the House Freedom Caucus.

Democratic leader predicts GOP holdouts will cave and support Senate budget bill

... “It’s pretty clear that House Republicans generally say one thing when they’re in an elevator with us or with you,” Aguilar told reporters in the Capitol. “And then they do something else when they are given an opportunity to vote on the floor.”

Aguilar is predicting those dynamics will also govern the debate over the sweeping budget blueprint passed by the Senate last week, which has drawn howls from a number of House conservatives who fear it will pile trillions of dollars onto the national debt. ...

House conservatives, however, are furious with the budget drafted by Senate Republicans, saying the spending cuts it promotes are insufficient to rein in deficit spending. They’re also up in arms over the Senate’s adoption of a budget gimmick empowering upper chamber Republicans to claim that the tax cut extensions will add $0 to the debt — a far cry from the $4 trillion deficit impact estimated by the Congressional Budget Office.

Aguilar, though, said Democrats anticipate that those holdouts will experience a change of heart when the pressure grows from the White House and they’re being blamed for blocking Trump’s agenda. ...

“Generally, the only one who we can believe is Thomas Massie, who’s principled and if he says he’s a no he’s going to be a no,” he continued, referring to the Republican representative from Kentucky. “Everyone else generally will say one thing until they get a phone call from the president.”

Ambrose Evans-Pritchard: Trump will stop at nothing in his quest for imperial power and will destroy the credibility of US Treasury debt

 

telegraph.co.uk

If you think it’s alarming now, just wait for Trump to wreck the bond market

The White House’s push for for expanded presidential power threatens US economic stability

 

Ambrose Evans-Pritchard

8 April 2025

---

Donald Trump is systematically purging every US government institution, a pattern familiar to anybody who has studied the caudillo regimes of Latin America, or the playbook of today’s Putin-Orbán-Erdoğan prototypes.

It is a racing certainty that he will soon do the same to the Federal Reserve, forcing the central bank to cut interest rates into the teeth of rising inflation, with epic consequences for the world’s dollarised financial system and for €39 trillion (£33 trillion) of offshore dollar debt contracts and swaps.

Late last week he fired the head of the National Security Agency and its top officials at the behest of Laura Loomer, a fringe conspiracy theorist, who whispered into Trump’s ear that they were disloyal to the Maga movement.

He has already fired the heads of the FBI’s intelligence division, its counterterrorism division and criminal investigations division, as well as the heads of the Washington and New York offices.

He has fired the top brass of the US military, starting with a preemptive strike on the chairman of the joint chiefs of staff. An earlier chairman – General Mark Milley – refused to ratify Trump’s attempted coup d’etat on Jan 6 2021.

“We don’t take an oath to a king, or to a tyrant or dictator, and we don’t take an oath to a wannabe dictator. We take an oath to the constitution,” said Milley in his parting shot.

But Trump also fired the three judge advocates general, who are legally independent by Congressional statute and have the authority to decide which military orders should be disobeyed – such as Trump’s order to “just shoot” American protesters, on American soil, during the Black Lives Matter saga.

That obstacle will not recur. Pete Hegseth, the defence secretary, said the three judges had been sacked to stop them posing any “roadblocks to orders given by the commander-in-chief”.

You can go through the list, agency by agency, extending to the universities and private law firms, and even to the muzzled editorials of some of America’s once great newspapers: the purge is Bolshevik in ambition.

Does anybody in their right mind think that Trump will spare the Fed’s Jerome Powell as the two men gear up for an almighty clash over US monetary policy? “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” bellowed Trump in capital letters on Truth Social on Friday.

The Fed will indeed cut rates this year but not until it is able to see through the confusing blizzard of tariffs and the ricochet retaliation of an angry world.

Powell told Congress that the tariff shock is much bigger than expected and may set off “persistent” inflation rather than just a one-off jump in the price level. He came close to damning Trumponomics as a recipe for low-growth stagflation. That is a red flag to a bull.

The current debate over whether or not Trump has the legal power to fire Powell entirely misunderstands the character of the Maga revolution. America’s rule of law is for guidance only these days.

You could say it was ever thus. Franklin Roosevelt tried to pack the Supreme Court after it blocked the New Deal. He failed, and unleashed tax investigations to settle scores, as did Richard Nixon. But Trump is an order of magnitude more outrageous.

Powell will not go without a fight. “I will never, ever, ever leave this job voluntarily until my term ends under any circumstances,” he said during Trump 1.0.

Scott Bessent, the Treasury secretary, said the administration could sideline Powell by appointing a “shadow” Fed chairman, who could steer the markets by issuing forward guidance. But this does not overcome resistance from the Fed board and the hawkish regional presidents.

A secretive team of Trump loyalists drew up a 10-page report before the election proposing more radical measures. These include forcing the Fed to “align policy with administration goals” or even to make the president an “acting” member of the Fed board.

Trump could purge members of the seven-strong Fed board one by one until they get the message. The law states that the president can terminate the 14-year term of a Fed governor “for cause”, usually meaning malfeasance or neglect.

But Trump has just abused his tariff powers on an heroic scale by invoking fictitious “emergencies”. He could no doubt stretch the meaning of “for cause” to anything he wants. The Supreme Court has the last say, but Trump-appointed justices have already shown a strong leaning towards an imperial presidency.

In any case, there are other methods to bring the Fed to heel.

Maga vigilantes are intimidating American judges by having pizzas delivered to their homes – a mob tactic to say “we know where you live”. So we can assume that recalcitrant members of the Federal Open Market Committee will face this sort of treatment.

The major US banks are raising their inflation forecasts to 4pc or higher this year. This inflation will hit before the last three price shocks – Covid, the Putin commodity spike and Biden’s overspending – have faded from immediate memory. It is exactly how inflation psychology becomes embedded.

A variant happened in the 1970s. Nixon bullied the Fed into expansionary policies, with some choice language on “the myth of the autonomous Fed” that later surfaced in the Oval Office tapes.

Loose money stoked inflation, so Nixon ordered a freeze on prices and wages in 1971, declaring war on “gougers”. It was very popular. Illiterate policies often are.

If Trump succeeds in extracting rate cuts from the Fed and tax cuts from Congress, the same problem is going to arise. So my assumption is that he will blame the symptoms and will resort to price controls.

The elephantine difference is that US federal debt was 34pc of GDP in 1971. Today it is 122pc on the Fed measure, and galloping upwards. The fiscal deficit is over 6pc as far as the eye can see.

The US does not have the domestic savings to fund this debt appetite. The savings rate has collapsed to 0.6pc of national income. It was 12pc in the 1960s.

Foreign investors have been plugging the gap. This soaks up a large part of the world’s savings – the underlying cause of America’s trade deficit.

If you think the stock market gyrations of the last few days are terrifying, just wait until Trump destroys the credibility of the Fed and of US treasury debt, the anchor of the global system.

He could order a captive Fed to relaunch quantitative easing and buy the bonds, but to do that when inflation is running hot would be seen by the whole world as naked fiscal dominance. It would set off a price spiral and a collapse of the currency – the sort of outcome seen over the decades in Latin America, or Erdoğan’s Turkey.

The end destination is a return to US capital controls to stop foreign funds and US investors from taking their money out of America. A man willing to impose 116pc tariffs – including pre-existing ones –  on Chinese goods and shut down the biggest bilateral trade relationship in the world as if it were a TV reality show will stop at nothing.

 

https://www.telegraph.co.uk/business/2025/04/08/trump-sell-off-is-bad-wait-until-wreck-us-bond-market/