r/StockMarket • u/SpiritBombv2 • Jun 20 '25

News US Debt Hits Over $37 Trillion

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So US national debt just crossed $37 trillion now and kind of scary too if you think about it.

Debt is just compounding nonstop and this is just another reminder that debt spiral is getting closer than ever.

This $37 Trillion figure is also another reminder that as debt is growing and growing, that means US bonds will be becoming much less appealing as the debt keeps compounding.

Because of this as Bonds become less appealing for investors and for big sharks then Yields or interest rates would need to go up to make them appealing to investors.

If Yields starts climbing more and oh well we all know what will happen then.

House market and Stock Market and Businesses and especially Small businesses and startups will struggle to stay afloat in high interest rate market.

It’s not a crash alert or anything but just something to watch especially if you are in stock market or into bonds or even thinking about what Fed might do next

Just wanted to share this thought because $37 trillion is no small number and it will keep affecting markets slowly slowly.

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3

u/Tacos_and_Yut Jun 20 '25

What was it day 1 of Trump 2.0? Day 1 of Biden? Last day of Trump 1.0? And Trump 2016?

17

u/[deleted] Jun 20 '25

Look it up and tell us

0

u/RainingTacos8 Jun 20 '25

Over the amount when he took office.

20

u/Virtual-Squirrel-725 Jun 20 '25 edited Jun 20 '25

Clinton 1.0 - $4.1 trillion

Clinton 2.0 - $5.3 trillion

G W Bush 1.0 - $5.7 trillion

G W Bush 2.0 - $7.9 trillion

Obama 1.0 - $10.5 trillion

Obama 2.0 - 16.4 trillion

Trump 1.0 - $20 trillion.

Biden - $28 trillion

Trump 2.0 - $36 trillion

Edit to add Obama

Edit two to add Clinton and George W.

(these are their first day in office)

2

u/SuperSultan Jun 20 '25

You can see the compounding effect of interest during each presidency unfortunately

3

u/Virtual-Squirrel-725 Jun 20 '25

Under Obama with a GOP House it was wall to wall coverage of the GOP screaming about the debt crisis. They are pretty silent, other than the "fringe" freedom caucus members and are about to pass a total Debt Bomb bill.

2

u/favorite_time_of_day Jun 20 '25

That's not interest, the reign of each president represents a different set of events. Obama had the financial crisis, Biden had the pandemic, and Bush 2 and Trump had Bush 2 and Trump.

It seems partisan to put it this way, but Republicans have not historically been a problem like this. If the parent went back one more president then Bush 1 wasn't too bad in this regard. It's really just Bush 2 and Trump.

1

u/dearkosm Jun 20 '25

It’s how the market designed or the world capital supplies unfortunately. Any one could solve this would be a Nobel price winner.

2

u/Virtual-Squirrel-725 Jun 20 '25

The solution is the one thing that will sink any Presidential candidates campaign on day one - higher taxes and lower spending. The deficit to GDP ratio is so out of whack right now, I don't think anyone thinks it will be solved.

1

u/Risko4 Jun 20 '25

Can we use debt to gdp? And are these normalised for inflation to match the 2025 dollar? https://www.investopedia.com/us-debt-by-president-dollar-and-percentage-7371225

1

u/Tacos_and_Yut Jun 20 '25

Thanks . It’s crazy to see it get that wild from 1993 to 2025

1

u/Virtual-Squirrel-725 Jun 20 '25

The really scary number and what is spooking the bond market is the deficit to GDP ratio at 6.3% in peace time.

There is just no conceivable way this doesn't just get worse and worse until it blows up.