The Don Jones Index, 8/28/26

the DON JONES INDEX…
	GAINS POSTED in GREEN LOSSES POSTED in RED 8/28/26... 14,378.09 8/21/26... 14,381.39 8/14/26... 14,373.35 6/27/13... 15,000.00 Original
*(THE DOW* JONES INDEX: 8/28/26... 53,569.49; 8/21/26... 52,759.21; 6/27/13… 15,000.00)**

LESSON for FRIDAY, AUGUST 28th, 2026 – “DROWNDING in DEBT!”

The U.S. national debt surpassed a record-breaking $40 trillion in August 2026. (AI Overview, ATTACHMENT ONE built on several sources) “This total is the cumulative amount of money the federal government owes to public investors and internal trust funds, coming out to roughly $116,800 per American citizen.”

With the federal deficit near 6% of GDP and the national debt over $40tn, contends former International Moneyfunder, now Harvard Professor Kenneth Rogoff in the Guardian U.K. (August 26, Attachment Twenty Five, Below), America’s fiscal position looks increasingly precarious.

Are we seeing the first signs of panic in Donald Trump’s Treasury? he asked. “The US is by far the world’s biggest debtor, and the steady rise in global long-term interest rates – which I have long argued was inevitable – is starting to cause real pain.

“Until now, the Treasury secretary, Scott Bessent, has dismissed concerns about US debt, which recently surpassed $40tn, as a big nothingburger. Growth, in his telling, will be so spectacular the US will easily be able to meet its interest obligations without any significant tax rises or spending cuts, while the rest of the world will happily keep feeding it money. But if Bessent really believes that, why is he trying to strong-arm the bond market by fiddling with the maturity structure of government debt?”

Bessent, the former bond trader and hedge fund manager, scored a major win when he supported the Argentinian peso last autumn, Rogoff allowed, “and he probably did not do too much damage by unexpectedly backing the Japanese yen over the summer, even if the effects faded fairly quickly.” (See more below)

Fox News (ATTACHMENT TWO) stated that every American now owes $300,000. (They recommended a typical Foxy solution – cut social security, medicare and Medicaid and give more tax cuts to the rich to stimulate growth,

“US debt no longer trades as a special safe asset relative to that of other advanced economies. The value of dollar dominance is thus fading even under the best of circumstances. And if budget pressures eventually trigger a crisis,” Rogoff warns, “the result could be a rapid loss of the dollar’s global market share that might otherwise take decades.”

A worried world is watching American debt (when they are not busy dodging wildfires)... Al Jazeera expressing concern over America’s “ballooning debt” and citing some economists who fear “a toxic combination of heavy borrowing, increased spending and lower taxes could land the world’s biggest economy in crisis.” (August 20^th, ATTACHMENT THREE)

The Jazzies fingered world economists in asking and answering several debtatadory inquiries...

HOW FAST IS DEBT RISING?

“US debt is growing much faster in the 2020s than it did in previous decades,” believes Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), a budget watchdog

WHY IS DEBT BALLOONING?

The soaring US debt “is an inevitable result of our demands for endless tax cuts, benefit expansions, and defence investments, and our refusal to address escalating Social Security and Medicare shortfalls,” Jessica Riedl, a budget and tax fellow at the Brookings Institution think tank, told Al Jazeera which specifically blames...

CRISIS SPENDING

There have been two major crises in nearly two decades, during which governments have needed to borrow and increase spending.

The 2007-09 recession was the first crisis, while the second was the 2020-23 COVID-19 pandemic, which is linked to about one-third of the debt run up since 2017, as borrowing under both the Trump and Biden presidencies intensified.

LOW TAX REVENUE

Analysts say another reason for rising borrowing is that tax and other revenues are not keeping up with spending, especially as the US is spending more to fund pensions and healthcare for an ageing population.

RISING INTEREST RATES

Interest rates remained low until the pandemic hit, at which point the Federal Reserve raised rates to fight inflation.

THE TRUMP TAX CUTS

“Trump has implemented deep tax cuts for businesses, starting with his Tax Cuts and Jobs Act of 2017 during his first term, which slashed the corporate tax rate from 35 percent to 21 percent.

“He followed that up in 2025 with his “One Beautiful Bill Act”, permanently entrenching the 2017 law. Although the bill also cut Medicaid spending by 12 percent, it raised the debt ceiling by nearly $5 trillion to allow for this.

At present, individual income taxes make up roughly half of federal revenues, compared with only 9 percent from corporate income taxes.

WHO ARE the AMERICAN CREDITORS?

Public debt borrowed from domestic and foreign investors makes up 80 percent – roughly $32 trillion – of the gross debt, according to Treasury data.

About $21 trillion of this public debt is owed domestically, to a variety of creditors including the Federal Reserve ($4.528 trillion), which buys and sells Treasury securities to influence federal interest rates and manage the money supply.

WHO ARE the FOREIGN CREDITORS?

“Foreign investors hold $9.29 trillion, or nearly a quarter of the total US national debt. Japan is the largest foreign holder of US debt, followed by the United Kingdom and China. (See more creditors in charts and graphs at website here.

The Jazzies also asked: “Could the Iran war trigger the next debt shock?” citing “Analysts” who said that the rising debt could potentially create an economic crisis for the US, “in the form of hyperinflation or higher interest rates, for example, if it goes unchecked.”

“We’re already paying the cost. This debt is slowing growth, pushing up interest rates, and worsening inflation,” Riedl of Brookings said, and the consequences could be intergenerational, “with young people forced to pay more for many years.”

Rogoff (Attachment Twenty Five, below) asked: “Are we seeing the first signs of panic in Donald Trump’s Treasury?”

Until now, “the Treasury secretary, Scott Bessent, has dismissed concerns about US debt, which recently surpassed $40tn, as a big nothingburger. Growth, in his telling, will be so spectacular the US will easily be able to meet its interest obligations without any significant tax rises or spending cuts, while the rest of the world will happily keep feeding it money.

“Bessent has repeatedly assured markets that the Trump administration’s voracious borrowing is temporary, and that AI-led growth will generate an abundance of tax revenues that will soon bring the deficit down to a somewhat more manageable 3% of GDP.”

He has repeatedly assured markets “that the Trump administration’s voracious borrowing is temporary, and that AI-led growth will generate an abundance of tax revenues that will soon bring the deficit down to a somewhat more manageable 3% of GDP.

“Making matters worse, the premium on long-term US treasuries – a major part of the dollar’s “exorbitant privilege” as the global reserve currency – has largely evaporated,” leaving the SecTreas to resort to “gimmicks”... taking long-term debt out of the system and replac(ing) it with short-term debt, much as the Federal Reserve does when it engages in quantitative easing. “Such an approach can make sense in a panic, when there is a good chance long-term rates will come back down,” Rogoff allows, “but there is little evidence that the market is the one panicking right now.”

Scott Horsley (NPR, August 20: ATTACHMENT FOUR) called the $40T an “eye-popping level of red ink.” NPR asked and answered three questions, (pace the Jazzies) about “the deepening financial hole the government is in” asking...

HOW DID THE DEBT GET SO BIG?

It’s the Old Folks’ fault. “For years, the government has spent more money than it collects in taxes. Some of that has been driven by political choices — to wage war, cut taxes or provide a more generous social safety net during the COVID-19 pandemic. But much of the growth in spending happens automatically, as baby boomers age into retirement, resulting in higher costs for Social Security and Medicare.”

HOW DOES THIS AFFECT ME?

The federal debt limits the government's ability to tackle other priorities; but it also affects some people more directly, by making it more expensive to borrow money. “Mortgage rates, for example, tend to rise and fall with the yield on 10-year Treasurys, and the rate on 30-year home loans has climbed to near 6.7%, according to Freddie Mac,” so “more Americans are going bankrupt.”

IS ANYONE IN WASHINGTON WORKING TO ADDRESS THE DEBT?

The Treasury Department has taken steps to limit the increase in long-term bond yields, but the move “does nothing to solve the underlying problem”... ultimately, Congress will have to raise taxes, cut spending or — most likely — “do both!”

Beyond the $40 trillion debt milestone, “economists have raised concerns about the amount of debt held by the U.S. public (which excludes debt government departments owe other departments, in particular the Social Security trust fund) and the ratio of debt to gross domestic product (GDP). (Tangle, August 25^th, ATTACHMENT FIVE) “In 2001, publicly held debt as a share of GDP was 31.5%; today, it is nearly 100.”

In response to last week’s Treasury announcement, Republican fiscal hawks called for urgent action to curtail spending. “America’s national debt has officially crossed a line that should alarm every single American,” Rep. Ralph Norman (R-SC) wrote on X. “This is not just another number. It is a flashing warning sign that Washington’s reckless, unchecked spending is putting the future of our country, and generations of Americans, at risk.”

Democrats also denounced debt but, of course, blamed the red wave. Tangle’s bipartisan toungmaxxers included Steve Benen (MS Now) who declared: “There’s no great mystery here. The debt is growing quickly as a direct result of GOP policies, including last year’s tax breaks for the wealthy and the war in Iran.” Concurring accusations also flew from the faces of another (male) MS Nowandagainder Anthony Coley and Dean Baker (Common Dreams),

Republican boosters like Les Rubin of Fox News agreed that the national debt is a “crisis we can’t ignore,” but added that the solution was cutting the gumment bureaucracy, not imposing more taxes on the rich. In the New York Post, Charles Gasparino suggested the debt load is unlikely to cause “fiscal Armageddon” even as it drives us deeper into the greasy hands of the Communist Chinese while Dmitri Bolt in Townhall added that Scott Bessent and President Trump ”have a plan” – essentially a secret plan (or, as Veep Vance termed it, a “discreet” plan).

Tangler Ari Weitzman leaned right, concurring with Republicans who said that you cannot meaningfully reduce the federal deficit without “reforming Social Security, Medicare, Medicaid, and defense spending.” Marshalling the numbers to support the admittedly unpopular cuts... Weitzman derided both.

“Democrats are unwilling to slash the military budget (“Sorry, Ukraine and Taiwan, we’ve decided to abdicate the global geopolitical stage entirely”) while Republicans aren’t going to swallow hard and take an axe to Medicare or Social Security (at least not this era’s Republicans),” he wrote, siding with independents whose solution to the problem was “let’s do both!”

Given the drums of debt resonating through the politics and e-con-me of the present, Tangle also reported that America’s National Debt is older than America itself... the Continental Congress financing its Revolutionary War via the French and the Dutch and then – once independence was won, promptly defaulting on “roughly $75 million” by 1791, leading to SecTreas Hamilton creating a new National Bank which was able to get out of the debt hole by 1795,

Our DJI Lessons utilize fiscal data from Debt Clock which as of March 1^st, stood at $38.52T updated, as of yesterday afternoon (see below) has elevated that to $40.086T. The March numbers included a Debt-to-GDP ratio of 130.6%, the per person rate rising to $114,136 and an annual interest toll nearing a trillion ($952B – ATTACHMENT SEVEN).

The Debt Clock numbers go back to 1940, just before World War Two... the levy that year was nearly $43B, rising after the war to $259B when the Debt/GDP briefly exceeded 100% parity before falling back to as low as 31.1% in 1981. Covid, war, an aging population and spendthrift gumments hiked it up again, passing parity in 2014.

The ratio for Fiscal Year 2025 (projected) was 130.6%.

"We've been running deficits for the last 26 years, and we've basically ignored a lot of the structural challenges that exist in our budget that are very well known," Michael Peterson, CEO of the nonpartisan Peter G. Peterson Foundation, told CBS News. (Aug. 21, ATTACHMENT EIGHT). "It's clearly been accelerating because, like any debt problem, the longer you ignore it, the worse it gets."

As the government continues to borrow, interest payments are consuming a larger share of the nation's spending, creating a compounding effect that further fuels the debt. The U.S. government now spends more on servicing its debt than on national defense or Medicare.

CBS added that the Peterson Foundation estimates that the national debt “could reach $50 trillion in six years if the country does not make spending or tax reforms.” With the deficit being driven by sick old people on Social Security and Medicare, tax cuts for the rich, the “Great Recession” of 2008 and COVID-19 pandemic, Margaret Spellings, president and CEO of the Bipartisan Policy Center, a Washington, D.C.-based think tank, told CBS that "AI disruption, a recession, global war or any number of other events could quickly push us over the edge from a challenge into a full-blown crisis."

Not everyone agrees that the nation's soaring debt could pose an economic threat. Baker (above) expressed less concern about the consequences to CBS, “noting that a strong U.S. economy should allow the federal government to continue to shoulder the growing financial burden.”

The more immediate economic threats facing the U.S. are “tariffs and the Iran war's impact on prices,” he said. Baker also warned that investors could pull their money out of the U.S. if what some believe is an artificial intelligence bubble were to burst.

"If people just become wary of U.S. markets and the U.S. economy, they might pull their money out," he said. "So I think there is an issue with foreign money leaving the U.S. but the government debt isn't the biggest factor, and probably not even a major factor."

America’s status as to standard of living remains high in terms of “average GDP per capita and material goods like large homes and cheap consumer items. However, high costs for healthcare, housing, and childcare, paired with wide income inequality, leave many middle- and lower-income households feeling financially insecure.” (AI Overview from various sources – ATTACHMENT NINE)

A comparative national listing of the Debt/GDP (ATTACHMENT TEN) first traced America’s passing parity found that America was far, far down on the compliance list but not as bad as Japan (nearly double), Italy, Greece, Singapore and Chinese Taiwan. Some of the lowest national debts were in countries as diverse as Denmark, Kuwait and Haiti.

And a more expansive STANDARDOFLIVING.ORG index, including economic status as well as human rights, freedom, health and corruption... admittedly weighted towards the small, rich Northern democracies... ranked the United States as slightly better than Latvia, but worse than Liechtenstein and France.

These numbers might start diving down if the likes of Tiana Loew Doescher (Washington Examiner, ATTACHMENT TWELVE) are right to warn that the bond market is now well and truly imploding. The benchmark 10-year hasn't come down, and the 30-year has catapulted toward 5.3%, hitting its highest level since before the Great Recession.

The financial fracas prompted Treasury Secretary Scott Bessent to announce on Wednesday that the Treasury would "at least" double buybacks of long-term bonds to stave off the sell-off. The strategy worked — for less than 12 hours. By Thursday morning, the 30-year yield had fallen, then risen some 10-odd basis points again.

“Bessent is correctly panicking,” the WashXaminer opined, “because roughly a third of our $32 trillion in publicly held debt is maturing in the next 12 months, meaning that roughly $10 trillion worth of debt that was financed an average of six years ago is maturing into a market where interest rates are 300 to 400 basis points higher than they were in 2020.”

“As I wrote last week,” Doescher looked back, “bond investors are not responding to the umpteenth month of President Donald Trump pretending to negotiate with a suicidal theocracy in the futile hope of reopening the Strait of Hormuz through a peaceful diplomatic deal.

“Leftists,” she accuses, “will lie that the fiscal crisis is caused by insufficient taxation, even though the tax cuts in the One Big Beautiful Bill Act resulted in a 7% increase in individual income tax collections this year. Cowardly Republicans will claim we can just grow our way out of our debt or focus on discretionary "waste, fraud, and abuse" without touching entitlements. This is arguably the more pernicious falsehood because serious people pretend to believe it.

“The reality is that, whereas overall federal spending has risen 4% in the first 10 months of the fiscal year, Social Security outlays are up 5%, and Medicare and Medicaid are up 8% each. Almost every single dollar of individual income taxes sent to Uncle Sam so far this year ($2.365 trillion) is going solely to Social Security and Medicare ($2.325 trillion). Two out of every three dollars collected by the federal government is going to Social Security, Medicare, and Medicaid.”

Doescher and the far-right WashXaminer concur with Georgia Congressman and candidate for Senate Mike Collins (below, Attachment Eighteen) who has repeatedly said that the debt problem can be solved by throwing lazy old bums off Social Security, Medicare and Medicaid and making them go back to work (which has supporters of incumbent Democratic Sen. Jon Ossoff crying “Plutocide!”),

“Unless Congress decides to do the hard thing and start touching that third rail of politics,” she concludes, “interest rates from the 30-year Treasury to the 30-year fixed mortgage will continue to meander upward.”

Fortune (August 20, ATTACHMENT THIRTEEN) holds that SecTreas Scott Bessent still wants Americans—and markets—to shrug it off the debt.

“There’s nothing magic about the $40 trillion number,” Bessent told CNBC‘s Sara Eisen in an exclusive interview on Squawk on the Street Thursday. “And we can grow our way out of that.”

THE FUNDAMENTALS ARGUMENT

Bessent’s core pitch is that the deficit is smaller than it looks, and the money the government is “losing” isn’t being lost at all, according to Fortune Business Editor Nick Lichtenberg who said the U.S. ran a fiscal consolidation in calendar year 2025, with the deficit landing around 5.7% of GDP. “Part of what has inflated the headline deficit, he argued, are one-time tariff refunds that won’t recur: 2026 tariff income, he said, should roughly match 2025 levels as U.S. Trade Representative Jamieson Greer reimplements duties through the Section 301 process.

The other major drag on revenue, he said, is the cost of letting companies immediately expense new factories, equipment, and farm structures. Bessent said he doesn’t count that as spending.

“That is actually an investment in the future and we’re increasing the tax base,” he said. “That is what measures the wealth of a nation … the ability to increase after-tax return on capital.”

According to the Treasury Borrowing Advisory Committee (TBAC), the panel of bond dealers and investors that advise Treasury on its own funding, the government faces a $1.45 trillion funding shortfall in fiscal years 2027-28. Rising interest costs already drove the biggest jump in Treasury outlays this year—up $120 billion—and Lichtenberg added that the government “now spends more than $1 trillion annually just servicing debt, more than the U.S. spends on national defense.”

Jon Hilsenrath, the longtime Federal Reserve watcher who spent decades at The Wall Street Journal and now runs Serpa Pinto Advisory, previously told Fortune he sees a collision brewing between the Treasury’s bill-heavy strategy and the Fed’s own moves under new Chair Kevin Warsh to shrink its balance sheet—which dealers expect to push the Fed toward shorter maturities just as Treasury is forced back toward longer-term bonds to refinance.

“It always comes back to fundamentals,” Hilsenrath said. “Trump and a new Congress came into power and chose not to do anything about the deficit.” But tariffs as popped up between the U.S. and Canada a week after Lichenberg’s analysis may be fun to the President and his creatures, but more voters (and not all of them leftists) are seeing only the “mental.”

On the labor market, where a soft jobs report last month stoked concern about cracks in the economy, Bessent called the data “quite noisy” and credited tighter immigration enforcement for reducing the number of jobs the economy needs to create.

“The U.S. is a big service economy. We don’t respond to the trade-weighted dollar,” he said, describing the greenback as “very, very stable” against top trading partners Canada and Mexico and insisting the administration maintains “a strong dollar policy.”

A week later, the stable door swung open and Americans were high in the hayloft as a result of those USA/Canada reciprocal and revengeful tariffs!

Also caught sleeping, Time (Aug. 21^st, ATTACHMENT FOURTEEN) had already reported that the U.S.A. reached the $40 trillion milestone earlier than experts had previously predicted; in 2023, with the Congressional Budget Office had estimated that the total debt wouldn’t hit that figure until 2028.

Timeserver Chantelle Lee ascribed deficit dis- and mis-info to both Presidents Trump and Biden and, running the numbers, found that...

“When Trump took office for his first term in January 2017, the total debt was about $19.95 trillion. When his presidency ended four years later, the debt stood at roughly $27.75 trillion, meaning that the debt rose by about $7.8 trillion under his Administration.”

“The debt grew by about $8.4 trillion while Biden was in the White House, increasing from about $27.75 trillion when he was sworn into office in January 2021 to roughly $36 trillion by the time he finished his term in January 2025.”

And since Trump returned to the White House for a second term in January last year, the debt has gone up by about $3.8 trillion. That means that the national debt has climbed by a total of $11.6 trillion across the two Trump Administrations—so far—a figure that comprises more than a quarter of the total amount.

Biden, at least, could blame some of the debt on the plague. According to Reuters, about one-third of the growth seen since 2017 took place during two years or so of the pandemic, when the first Trump Administration and then the Biden Administration intensified borrowing to fund the country’s pandemic response and recovery.

The tax cuts within Trump’s administration and a half were, however, expenses of choice – following the Brookings Institute assessment of the Term 1.0 tax cut – multiplied by the Term 2.0 “One Big Beautiful Bill” which, according to the nonpartisan Committee for a Responsible Federal, “will add $4.7 trillion to the national debt through 2035.”

Time concluded that Trump’s and Biden’s fiscal policies have both contributed to—and exacerbated—“the longer-standing issue of government spending exceeding tax and other revenues, which has led to the ballooning national debt.”

The Pew People a year ago (when the national debt was “almost $37 trillion) warned that the Congressional Budget Office’s (CBO) so-called “megabill” raised the debt limit to $41.1T, this limit is rapidly being approached. (ATTACHMENT FIFTEEN)

Aside from Denmark, the United States is the only country with a law “setting a specific monetary limit on its national debt” the Pewsies reported. (Australia enacted such a limit during the 2007-09 global financial crisis, only to repeal it a few years later. In 2023, Kenya changed its numerical limit to one expressed as a share of gross domestic product, or GDP and there have perhaps been changes over the course of a year.)

Most other countries cap their debts by law. European Union member countries, for example, are supposed to keep their public debts to no more than 60% of GDP, though in practice many countries are well in excess of that limit but Pew calls enforcement “inconsistent”.

The American debt, they wrote, has been hiked by events over the life of the country such as the World Wars with their Liberty Bonds and COVID-19. It’s bad... but not as bad as in Japan (which is both the biggest foreign holder of U.S. debt – more than $1.1 trillion, or 3.1%, of the country’s total debt – and also the world’s biggest debtor with levies twice GDP). Interest on the debt (3.352% as of July 2025) “is now the government’s third-biggest major spending area, behind only Social Security and health care services and research.”

A section on the five member Securities and Exchange Commission as regulates debt and interest generated by the sale and purchase of stocks and bonds from 1440 (ATTACHMENT 15.A) noted that it was created during the Great Depression in 1934, that President John F. Kennedy's father was the first chairman and that it was criticized for not having caught Bernie Madoff's nearly $65B Ponzi scheme earlier.

1440 also treated Andrew Jackson’s war on debt, the K-shaped economy and the chances that Generative AI will be coming for your job... with more upon this next week.

A year later, MS NOW (Aug. 25, ATTACHMENT SIXTEEN) unloaded a cargo of charts and graphs to support the contention of author Bobby Kogan that there are “reasons not to panic” citing “two critical points”... that, without the Trump Tax Cuts, debt as a percentage of GDP would be declining and that – while federal spending is higher now than in years past, “it is rising more slowly than was forecast back when the country still had a stable long-term outlook.” E-con-mystics, Kogan says, “always knew the baby boomers would retire, pushing up spending, but spending has actually been pushed up less than expected.”

What’s matters most, he warns, “is that U.S. federal debt is not only historically high outside of World War II, but it’s also on track to rise indefinitely. This is a bad situation that Congress must address”... through the unpopular options of tax increase and service cuts.

In acting to fix the problem, Kogan also declares, “it is essential that Congress not do more harm than good” by, for instance “slashing crucial aid that Americans rely on, such as food benefits, housing assistance or healthcare coverage for struggling Americans.” Instead (and MS Now aligns itself with the socialists and the Communists), lawmakers should look first and foremost “to undo some of the many tax cuts significantly tilted toward the wealthy that are responsible for the creating fiscal gap.”

A vigorous dissent from the usually liberal WashPost (Aug. 24, ATTACHMENT SEVENTEEN) contends that – to get the national debt under control, “start with the retirement state.”

The anonymous Poster writes that American youth are being ripped off by the geezers and the solution to debt and deficits is to cut Medicare, Medicaid and Social Security across the board.

Social Security is out of step with modern times. Most countries with fiscally sensible retirement programs follow the same basic structure: A tax-funded transfer payment as a floor, with means-tested benefits and compulsory private savings above that. In America, on the other hand, “a big chunk of Social Security benefits goes to people who don’t need them. Over one-third of benefits are paid to seniors with incomes over $100,000. This share is likely to increase over time.”

Medicare is the bigger challenge, the Postit added, “its share of the economy will only increase.” To drown the debt, it should also have stronger means-testing. Well-off seniors should be paying full freight for their premiums, and average seniors should be paying more than they currently pay. There’s no way to continue to justify premiums covering less than one-fifth of the costs for health care for the nation’s wealthiest generation.”

While perhaps a bitter pill for the well-off elders, the Post at least followed a variant of Catfish Jack Parnell’s defense of “discrimination” in making the gumment’s benefit cuts contingent, by percentage, on their magnitude. People making under $10,000 yearly might lose ten percent of their benefits; under $25K twenty; a quarter to those $50K or more... perhaps up to (who knows?). Entrepreneurs and CEO’s drink from a special trough, but what about the six and seven figure salaried retirees who paid comparatively little or even nothing) into the funds?

And then there’s the “kill ‘em all” advice from Rep. Mike Collins (R-Ga), now running for Senator.

“In a June 2025 radio interview, he told a right‑wing talk show host that cutting taxes and making work more advantageous could help people “get off of Medicaid, get off of Social Security, get back in the workforce”. (Bing/Flagpole, ATTACHMENT EIGHTEEN)

Bing also reported that the comments “drew sharp criticism from Georgia Democrats, who accused him of promoting policies that would cut $800 billion from Medicaid and, in their view, risk throwing 750,000 Georgians off the health‑care rolls.”

There appears to be no slack in Collins’ shack for the nonagenarians in wheelchairs, the wounded veterans or first responders... work or die, Mike says. Bing cited “Protect Our Care Georgia” who rejected Collins’ “back to work” message (acknowledging the stupidity of fumbling fossils forced to work at Starbucks spilling hot java over customers, but undercutting their appeal to the mob by folding in dispatches from the Stalinists at the Atlanta Daily World).

Collins trailed by seven points two weeks ago in the Insider/Advantage poll (the Governer’s race was a dead heat,)

If some are blaming the welfare bums while others blame the billionaires, Fortune (Aug. 26, ATTACHMENT NINETEEN) has another roster of culpable culprits... the “experts”.

“Good” experts putting pen to paper (or bot to the bothered) like hedge fund legend and Soros sockpuppet Stanley Druckenmiller reporting in the Wall Street Journal, his protégé – turned nemesis Jon Hilsnrath in Fortune and Apollonian e-con-mystic Torsten Slok in his Daily Spark.

David Kelly, chief global strategist at J.P. Morgan Asset Management, noted that former Fed Chairman Alan Greenspan fretted in 2001 about what would happen if the U.S. actually paid off all of its federal debt. “He needn’t have worried.” Kelly traced the reversal to “four buckets of fiscal decisions compounding since then,” and measured against the last time the budget was healthy (fiscal 1996–2000)...

· Tax cuts in 2001, 2017, and 2025 that pulled federal revenue down from an average of 19.1% of GDP to 16.7%, a cumulative $11.1 trillion hit...

· Wars in Iraq, Afghanistan, and Iran pushing defense spending from 3.5% to 4.4% of GDP, adding $3.9 trillion...

· Social Security, Medicare, and Medicaid spending that climbed from 7.8% to 10.1% of GDP as the population aged, adding $12.5 trillion, and...

· Everything else, boosted by crisis-response spending during the 2008 financial crash and the pandemic, added another $5.2 trillion.

Fortune’s Nick Lichtenberg, a week after his turn as Bessent-whisperer (Attachment Thirteen, above) wrote that hedge funds—often operating through offshore centers—“have become the marginal buyer, holding $2.4 trillion in long Treasury exposure as of last September, more than mutual funds or U.S. banks,” per a New York Fed analysis cited by Columbia financial historian Adam Tooze and cited Hilsenrath’s read on the stakes: a 5% Treasury yield “is not a clear and present danger to the economy… but it is a problem, which is why you have to pay attention to these market signals now.”

Rogoff’s panicky pity party for President Trump (ATTACHMENT TWENTY FIVE) asked “What, then, should the US Treasury do?” and ventured that “the textbook answer, as Bessent well knows, is to take steps toward major budget consolidation, and not the “blundering, heavy-handed random cuts that Elon Musk and his Doge acolytes pursued in 2025” before the former trillionaire was busted back to his $873 billionaire bitcoin bubble fantasy above.

“There are many reasons to think that pain-free budget consolidation is wishful thinking,” Rogoff Gukked out on Wednesday, “not least because AI profits are likely to prove much harder to tax than labour income. In the near term, the costs of supporting an ageing population, paying for what appears to be an inevitable surge in military spending and caving to intense populist pressure for more public spending will probably rise at least as fast as revenues.

“Bessent’s problem is that his boss, Trump, understands that American taxpayers are not prepared for any kind of genuine austerity.”

IN the NEWS: AUGUST 21^ST to AUGUST 27^TH, 2026

Friday, August 21, 2026

Dow: 53,277.01

E-con-mystic Paul Krugman calls $40T national debt “no big deal.”

A big deal for President Trump is that SCOTUS goldenlights the completion of his Green Ballroom (or something like that) and he and WarSec Pete celebrate by announcing that the USS Doris Miller will be renamed for... of course!... himself (the first and only aircraft carrier to be named for a sitting, or lying, President). The dishonored Miller was a heroic Navy Cross winner and, also, the only black honoree. Family, friends and supporters are outraged.

Another big deal is the weather – relentless summer heat in Europe and coastal US, savage storms in the Midwest. Wildfires are burning down Reno, NV, tropical storm Moke following Lala to Hawaii, massive church fire in Cleveland and there are earthquakes in Peru and Japan, leading up to Nepal.

Animals affected by the crazy climate include an ungrateful rescue dog who bites off the arm of her adopter, five dogs are rescued from a hot car in Newport Beach, CA; three cute spider monkeys rescued from smugglers now housed at the Nashville Zoo, more beagles saved from medical researchers and Wilbur the pig, who escapes the bacon factory roams the mean streets of Hollywood until adopted by Grammy winning songwriter Diane Warren.

Saturday, August 22, 2026

Dow: Closed

It’s Tooth Fairy Day. And believers also probably believe that POTUS is winning the war with Iran, slapping down those cowardly Canadians and will hold or increase his majorities in Congress.

Trump reiterates his intent to impose “D-Day sanctions” on those Shiiteys who continue attacking American allies in the Gulf as the USS Lincoln is heading home (where the father of a sailor is intercepted and arrested by ICE – which would be appreciated in hot places from Arizona to Amarillo. Gary, Indiana... still powerless... accuses the white people of foot-dragging on utility repairs, lawyers for Karmelo Anthony, convicted of high school murder, demand a retrial without an all-white jury.

Also in the courts: retrial demand dismissed after attorneys for Lindsay Clancy contend prosecutor was guilty of Catholic bias... she continues to maintain that demons told her to kill her three children, just as they told Pennsy killer Royce Moser and mother. Prince Harry, Elton John and other celebreties lose lawsuits by tabloid tattlers. Karen Solomon of Worcester, MA hunted for killing her policeman husband; sex criminals include two (female!) teachers accused of raping students in Arizona and Abercrombie CEO Michael Jeffries (who blames dementia for sex assaults over the past 30 years.)

Sunday, August 23, 2026

Dow: Closed

On Sunday talkshows the partisan divide over AI data centers blurs with the economic and national defense hawks fighting the greenies. Gov. Greg Abbott (R-Tx) says he supports the massive complexes, but also guardrails and guidelines on water, power and agricultural dislocations. ABC host Jonathan Karl asks him what is causing the anger and Abbott replies that it is the rapidity of the growth and the contempt some techsters express for the stupid locals as the complexes “popped up in places nobody had heard about.” He still believes that Republicans will sweep the midterms because “voters hate Socialists like Mamdani” and that Trump is “on track again” with his “robust” affordability agenda. Including plenty of good paying jobs in homebuilding and defense contracting and, as soon as Iran surrenders, gas will drop to below $2/gallon.

ABC liberal roundtabler Donna Bazile responds that we have to “protect the social safety net”. Eliana Johnson, Editor-in-Chief of the Washington Free Beacon says that, if Democrats win the midterms, their only agenda will be “investigate, investigate, investigate” and then impeach while POTUS is focused on “legacy issues”. Liberal Faiz Shakir calls AI “immoral:, but old right conservative Ramesh Ponnuru calls it the only part of the economy that’s working. Brazile snaps back that the only winners are the AI stockholders and Johnson calls Trump a genius because AI is necessary to keep up with China. Shakur concludes by saying left – populists are winning primaries because they work harder while Trump is distracted with “vanity” projects.

“Face the Nation” presents Fed Reserve Commissioner Neal Karhkari who says the economy is healthy because bond yields are up and Veep Vance and EcSec Bessent have solutions to put debt “on a sustainable path” until a New Normal emerges after the war. Dr. Oz hails the biggest drop in drug prices in 63 years and 17 major drug companies (as still keep prices triple those of the rest of the world) will reach parity due to Trump RX and MAHA while Medicare and Medicaid fails are due to fraud.

Monday, August 24, 2026,

Dow: 53,417.40

Canadian PM Carney says we are”at war” with the USA while Ontario Gov. Doug Ford (older brother of deceased lunatic Mayor Rob) says that Trump is the kind of man who will steal your lunch money.” Canadian e-con-mystics say they will withhold key minerals from the American utility apps so Trump will have to keep the lights on “with a pack of batteries.”

The President reveals (some of) his economic D-Day plans against Iran, but they are mostly directed against any friend or foe who still buys Iranian oil. He intends to punish SoKo, and help NoKo (and its small but growing nuke arsenal) but waffles on China, which consumes 90% of the Shiitey exports (and delays its moon mission launch due to tech problems.

Football season is up and running at the pro, college and high school levels but there are bad moons rising... the 2 year old son of Bills’ Ed Oliver drowns and the home of Cowboys’ Cee Dee Lamb is burglarized while he’s playing training camp game in California, But the gaping and the gawking goes ginormous for divorcing 49ers owner Jed York who antagonizes the Church Police by having sex with a prostitute in Ohio – is arrested, convicted and sentenced to One Day in Jail (!) and fined $1,150 (eight times what he paid the hooker). The morality minions at NFL now mull sanctions that could range from more fines to an order to sell the team, even forfeiting the entire (now 17) games of 2026-7.

And the strangeness stumbles on as multiple Manhattan manhole maniacs are Flocked climbing out of the sewer. Social media reports that they are allegedly searching for “valuables”.

In the sewer? Are they not men... but flies?

Tuesday, August 25, 2026

Dow: 53,577.40

It’s National Banana Split Day.

Authorities are coldly cautious (if not yellow) in declaiming that the Reno Hawk Fires (which have thousands of evacuees fleeing to casino parking lots before that district burns) was just “human-caused” as opposed to the dread and dangerous term “arson”. They proudly add that it is now 27% contained, but more high winds and heat will sweep in from the west, as far as OK City and Houston where temps reach 109°.

There’s finally good news in Gary as utilities are slowly restored after nearly two weeks of powerlessness. Dying seniors get their life support back on, lights return around midnight and people come out to dance in the streets.

And good news for Trump, too... SCOTUS greenlights his EO to shred mail-in ballot applications that do not pass Post Office scrutiny; disenfranchising the poor, sick, elderly and rural as well as intended migrants. (The bad is that legal challenges will probably delay implementation beyond the midterms to 2028 when, as the Post Ofice shreds and zaps the apps, DHS will be creating dossiers on the who’s and how’s of voters.)

SecTres Bessent will invoke sanctions and tariffs that will “asphyxiate” Iran (which offers $10M bounty for the head of Barron Trump) while ComSec Lutnik cancels talks with the Canucks – who have promised to de-trade with America and seek better friends among Asia and the EU while Djonald UnFrozen makes it personal against Ford (above) by renaming Lake Ontario Lake America.

Wednesday, August 26, 2026

Dow: 53,483.88

Tributes natural (a lunar blood moon eclipse, a rainbow over Manhattan) and human (Empire State Bldg. and other iconic places turned pink) for Dolly Parton (above) who wrote 3,000 songs. One of 12 children in her Tennessee mountain home, she moved to Nashville – began at the Grand Ol’ Opry at 13, with duets with Porter Waggonner and then sang with Linda Ronstadt and Emmy Lou Harris and with Kermit the Frog, acted in movies, created Dollywood and was elected to the Hall of Fame. A half-trillionaires, she co-wrote a mystery with James Patterson, sponsored books for kids through her Imagination Library and, after her death, pilgrims now flock to Pigeon Forge.

In a wonderful week for the Reaper, death also takes “Rocky Horror” and “Pennywise” actor Tim Curry, artist Yayoi Kusama, widow Nancy Kissinger and as his victims celebrate, dictator Ratko Mladic.

On the mortal plane – and beneath a heat dome lifting temperatures in California to 119° in aptly named Furnace Creek and 118° in Indio and Palm Springs – there’s no cool in Canada as President Trump and Premiere Carney continue one upping one another with tariffs now including toilet paper. Djonald UnWiped also depresses the Republican electoral prospects by vowing to tear down Kennedy Center and the Kennedy legacy (except for Bobby Junior’s vaxxing war making measles fatal) unless its name is changed to His. (Democrats call this “unconscionable” but secretly hope for this and more stupidity from MAGA.

Thursday, August 27, 2026

Dow: 53,569.49

Hundreds killed, including dozens of Americans on a “spiritual pilgrimage” to the China/Nepal border are spirited away by a flood and landslides that wash away villages, buildings and people. Premier Xi begins relief and recovery efforts, but is not too busy to hack American medical device manufacture Boston Scientific as well as the Federal Reserve, NASA, even the Senate.

Data Center developers pounce on military threats from China (as well as nuclear NoKo, Russia and Iran) to block the datablockers; even as midterm polls show opposition is bipartisan. With 24^th anniversary of Nine Eleven in less than two weeks, “Mastermind” Shiekh Khalid Mohammed will be put on trial in 2028.

More Dolly tributes come from Harry Styles, Chris Stapleton, Jack White and opinionators who say she was the last person everybody loved. Her last charitable gesture as she was dying was to let the doctors test experimental cancer treatments on her.

The number of people filing for U.S. unemployment benefits fell to 203,000 last week from a revised 207,000 the week before, “remaining at historic lows as layoffs are rare and most Americans enjoy job security,” Paul Wiseman reported at The Associated Press.

THE DON JONES INDEX

CHART of CATEGORIES w/VALUE ADDED to EQUAL BASELINE of 15,000

(REFLECTING… approximately… DOW JONES INDEX of June 27, 2013)

Gains in indices as improved are noted in GREEN. Negative/harmful indices in RED as are their designation. (Note – some of the indices where the total went up created a realm where their value went down... and vice versa.) See a further explanation of categories HERE

ECONOMIC INDICES (60%) THE WEEK’S CLOSING STATS...

CATEGORY

VALUE

BASE

LAST

CHANGE

NEXT

VALUE (ORIG.)**

CHANGE (to JAN – JUNE 2026) from 100%

JULY 17

Reconfigured

AUG. 14

LAST WEEK

THIS WEEK

OUR SOURCES and COMMENTS

INCOME

(24%)

6/17/13*

% UP – DOWN

Wages (hrly. Per cap)

1350

8/21/26

-0.053%

8/26

1,909.78

70.89%

1,353.92

1,353.20

https://tradingeconomics.com/united-states/average-hourly-earnings 37.62

Median Inc. (yearly)

600

8/21/26

+0.054%

9/4/26

1,474.31

40.75%

600.80

601.46

602.45

602.49

602.82

http://www.usdebtclock.org/ 68,129 161 199 204 241

Unempl. (BLS – in mi)

600

8/21/26

+2.44%

8/26

555.52

614.28

629.26

http://data.bls.gov/timeseries/LNS14000000/ 4.1

Official (DC – in mi)

300

8/21/26

-0.12%

9/4/26

216.73

299.92

309.27

309.19

318.34

318.71

http://www.usdebtclock.org/ 7,098 099 6,895 887

Unofficl. (DC – in mi)

300

8/21/26

+0.014%

9/4/26

259.80

299.62

284.26

284.18

283.90

283.86

http://www.usdebtclock.org/ 13,895 897 14,038 040

Workforce Participation

Number

Percent

300

8/21/26

-0.0086%

-0.01335%

9/4/26

295.81

299.98

298.74

298.26

297.99

297.95

http://www.usdebtclock.org/ In 162,151 137 2,120 098 Out 106,084 127 357 419 Total: 268,235 264 477

60.451 439 385 .377

WP % (ycharts)*

150

8/21/26

-0.485%

8/26

149.25

149.27

https://ycharts.com/indicators/labor_force_participation_rate 61.50 nc

OUTGO

(15%)

Total Inflation

1050

8/21/26

+0.1%

8/26

901.77

1050

1052.10

1051.05

http://www.bls.gov/news.release/cpi.nr0.htm -0.4 +.1

Food

300

8/21/26

+0.1%

8/26

257.37

300

299.40

299.19

http://www.bls.gov/news.release/cpi.nr0.htm +0.2 +.1

Gasoline

300

8/21/26

-2.9%

8/26

181.96

300

320.10

329.38

http://www.bls.gov/news.release/cpi.nr0.htm -9.7 -2.9

Medical Costs

300

8/21/26

+0.6%

8/26

267.14

300

300.30

298.50

http://www.bls.gov/news.release/cpi.nr0.htm -0.1 +0.6

Shelter

300

8/21/26

+0.1%

8/26

238.38

300

299.70

299.40

http://www.bls.gov/news.release/cpi.nr0.htm +0.1 +0.1

WEALTH

(6%)

Dow Jones Index

300

8/21/26

+1.536%

9/4/26

400.18

299.80

295.37

306.83

300.67

305.29

https://www.wsj.com/market-data/quotes/index/ 53,885.10 53,839.99 52,759.21 53,569.49

Home (Sales)

(Valuation)

150

8/21/26

-0.73%

-2.09%

9/4/26

137.08

155.60

154.17

152.61

158.23

151.49

154.93

150.38

151.69

150.38

151.69

https://www.nar.realtor/research-and-statistics

Sales (M): 4.09 06 Valuations (K): 440.6 431.4

Millionaires (New Cat,)

150

8/21/26

+0.049%

9/4/26

137.72

150.15

150.32

159.58

159.66

159.78

http://www.usdebtclock.org/ 24,385 397 411 429

Paupers (New Category)

150

8/21/26

+2.737%

9/4/26

134.69

149.92

149.82

149.67

149.63

145.53

http://www.usdebtclock.org/ 36,014 024 035 7049

GOVERNMENT

(10%)

Revenue (trilns.)

300

8/21/26

+0.018%

9/4/26

485.69

300.85

301.77

302.37

302.70

302.65

http://www.usdebtclock.org/ 5,573 579 587 586

Expenditures (tr.)

300

8/21/26

+1.944%

9/4/26

287.16

299.59

298.86

298.19

297.98

292.19

http://www.usdebtclock.org/ 7,253 258 263 407

National Debt (tr.)

450

8/21/26

+0.074%

9/4/26

344.44

448.90

446.23

441.68

440.85

440.49

http://www.usdebtclock.org/ 39,832 907 40.053 086

Aggregate Debt (tr.)

450

8/21/26

+0.209%

9/4/26

352.67

448.15

445.20

442.40

441.60

440.68

http://www.usdebtclock.org/ 113,877 4.083 4,356 4595

TRADE

(5%)

Foreign Debt (tr.)

300

8/21/26

-0.083%

9/4/26

252.18

295.57

293.90

293.65

293.46

293.22

http://www.usdebtclock.org/ 9,564 570 595 9603

Exports (in billions)

150

8/21/26

-0.94%

8/26

197.73

145.70

142.32

140.98

https://www.census.gov/foreign-trade/current/index.html 314.7

Imports (in billions))

150

8/21/26

-1.88%

8/26

130.49

145.32

148.05

150.83

https://www.census.gov/foreign-trade/current/index.html 388.0

Trade Surplus/Deficit (blns.)

150

8/21/26

-5.87%

8/26

182.61

108.06

114.40

121.12

https://www.census.gov/foreign-trade/current/index.html 73.3

SOCIAL INDICES

(40%)

Events of the Week

ACTS of MAN

(15%)

World Affairs

450

8/21/26

9/4/26

466.24

448.20

448.65

445.51

444.17

CIA Director John Ratcliffe makes a mission to Moscow to warn Putin that attacking NATO members (Poland, Romania and Moldova? so far) is an act of war, - nuclear war. Swiss tourist gets a year in prison for violating Bali’s “Day of Silence”. Mexico resumes livestock sales to US after screwworm panic eases.

War and terrorism

300

8/21/26

-0.2%

9/4/26

280.07

298.80

298.22

296.73

296.44

295.85

Swedish teen Viking slices teen girl with his sword. Zelenskyy says holding elections in Ukraine would help Russia – war there and in the Mideast continue. Dozens kidnapped in Haitian gang wars.

Politics

450

8/21/26

-0.1%

9/4/26

450.15

448.20

447.75

446.85

446.40

445.96

In the waning weeks of primaries, Darline Graham sins nomination to succeed her brother in SC. Democrats narrow 2028 convention cities to Boston, Denver and Philadelphia. Atlanta & Chicago cry “Racism!” Hakeem Jeffries and Jared Kushner hold secret bipartisanship meetings. DC police arrest man with a guillotine in his truck – mission unknown.

Economics

450

8/21/26

-0.1%

9/4/26

426.64

450.00

449.55

447.31

446.40

As National Debt hits $40T (above), Preident Trump freezes beef tariff for 90 days. He’s interviewing candidates to replace SecPress Leavitt, but winces as Darline (above) flubs Taiwan interview in advance of her midterm race. With SNAP cutoffs, low wage workers depend on food banks or go hungry.

Crime

150

8/21/26

-0.1%

9/4/26

201.34

149.55

149.40

149.55

149.70

149.40

Philly clown mask stalker reportedly flees the city but is captured in Vegas. School employee in Memphis stabs delivery driver for being late. Police shoot and kill luxury sailboat thief in Rhode Island. ICE arrests father of SS Lincoln sailor as he waits for his son; rolls out hyper anti-alien tech like shock gloves and robot dogs.

ACTS of GOD

Environment/Weather

450

8/21/26

-0.1%

9/4/26

275.85

447.30

446.85

444.60

444.16

443.72

It’s one of those years as Hurricane Dolly forms in Atlantic. Summer sweat, soaking storms and strange imperatives continue all week with indications of weeks’ more weird weather; Moke follows Lala to Hawaii. Small EQs in Peru and Japan, but...

Disasters

450

8/21/26

-0.1%

9/4/26

463.08

450.00

449.55

449.10

448.65

... ginormous landslide in Nepal kills hundreds, inc. dozens of Americans (above). Authorities blather on whether Reno’s Hawk Fire (93% contained) now is arson – settle on “human caused”. Accidents include 68 killed in Alaska charter plane crash, Oregon arson fire kills five humans, numerous animals; 2 homes in NC set afire by lightning, Washington state chemical plant leak sickens eleven, defective carnival ride in Tennessee injures 9. The good news: Pilot Faith Tenkley successfully lands plane in Boca Raton after engine failure.

LIFESTYLE/JUSTICE INDEX

15%

Science, Tech, Education

600

8/21/26

+0.1%

9/4/26

617.97

600.00

598.80

598.20

598.80

Space X proposes the world’s “biggest launch site ever” in Louisiana. Authorities say 20 to 25% of AI is being used to generate porn. Mixed messages from robot races in China – they beat Bolt but then crash into wall and fall down. Genetic detectives identify 9/11 victim, more expected.

Equality (econ/social)

600

8/21/26

9/4/26

675.06

603.00

603.01

602.41

Wokesters target Target for racist Halloween costumes while Darth Vader testifies for Flock in San Diego. Omaha stops school cops from using shock gloves on students. NY Catholics express support for Jews after synagogue bombing. Cruel Ohio bureaucrat fires school principal for adopting homeless teen.

Health

600

8/21/26

9/4/26

440.46

595.06

593.25

TV-docs warn that this year’s Covid arrives early as killer mutant measles spread, malaria killing Germans at Frankfurt airport, 8 year old in Louisiana killed and back to school diseases soar as vaxxes decline. Firefighter protective gear called carcinogenic. CDC recalls diseased alfalfa sprouts, eye drops recalled for “sterility” (in drops or male users?) while cans of dog food recalled for metal contamination. No word on the food.

Freedom and Justice

450

8/21/26

-0.1%

9/4/26

477.76

449.55

448.65

448.20

447.75

In the courts, Ghislaine Maxwell loses appeal in EpCase while killer Kohberg reverses his guilty plea. Lindsay Clancy cop killing case goes to the jury while old cold cases drag on. Lawyers litigate whether NFL dropouts can return to college ball, watchman watchers want Flock to reduce database dossiers from 30 to 7 days as META agrees to $18B settlement for corrupting youth – but only if sour sixteen rivals like Tik Tok and You Tube also payup. Cartmanish Cops stop, beat and tase couple into ICU for not respecting their authority.

CULTURAL and MISCELLANEOUS INCIDENTS

Diversive incidents***

Cultural

Sporting

Transitional

*** Diversive value raised from 3 to 4% 8/1/26

600

8/21/26

+0.1%

9/4/26

595.85

450.45

452.70

453.15

453.60

Princess Margaret to get acting job in UK’s Netflix series “Gentleman” to help pay Harry’s legal debts (above). Actress and new mom Alex Cooper donates to baby registry – Alice Cooper is busy rockin out in Germany. Kyle Kirkwood wins Freedom 250 race in DC, US open and NFL, college and high school football begin. Hollywood artifacts auction features John Travolta disco suit, “Castaway” soccer ball.

RIP: Oldest US Marine Roy Drinkard, 106, widow Nancy Kissinger, former Sen. Nancy Kassenbaum Baker, Motown songwriter Janie Bradford Hobbs (“Money”), artist Yayoi Kusana, voiceoberbiter Peter Cullen (“Eeyore”, Optimus Prime”), actress Shelly (“Donna Reed Show”) Fabares, actor Tim Curry (“Rocky Horror”, “Pennywise”) and, of course, Dolly,

Happy birthday to oldest woman Ethal Callahan (117) and congrats to Columbia highschool football team in Huntsville, AL that finally snaps 101 game losing streak.

Miscellaneous incidents

450

8/21/26

+0.1%

9/4/26

555.05

450.90

453.15

454.06

454.51

Prominent adjectivist actors Blake Lively’s levy against hubby and Busy Phillipps cancer scare satiate the gawkers temporarily deprived of depraved Royal Family deeds. Animal antics (as above) include runaway Hollywood pig, rescued spider monkeys, hot (car) dogs, El Nińo water warming brings more heat and hungrier sharks to the California coast.

The Don Jones Index for the week of August 21st through August 27th, 2026 was DOWN 3.06 points

The Don Jones Index is sponsored by the Coalition for a New Consensus: retired Congressman and Independent Presidential candidate Jack “Catfish” Parnell, Chairman; Brian Doohan, Administrator. The CNC denies, emphatically, allegations that the organization, as well as any of its officers (including former Congressman Parnell, environmentalist/America-Firster Austin Tillerman and cosmetics CEO Rayna Finch) and references to Parnell’s works, “Entropy and Renaissance” and “The Coming Kill-Off” are fictitious or, at best, mere pawns in the web-serial “Black Helicopters” – and promise swift, effective legal action againth parties promulgating this and/or other such slanders.

Comments, complaints, donations (especially SUPERPAC donations) always welcome at feedme@generisis.com or: speak@donjonesindex.com.

ATTACHMENT ONE – AI OVERVIEW

The U.S. national debt surpassed a record-breaking $40 trillion in August 2026. This total is the cumulative amount of money the federal government owes to public investors and internal trust funds, coming out to roughly $116,800 per American citizen. [1, 2, 3, 4]

What Drives the National Debt

· Spending Deficits: The government spends more money on public services, defense, and programs than it brings in through taxes.

· Interest Costs: High borrowing levels mean a fast-growing share of the budget goes just toward paying interest on the accumulated debt.

· Demographics: An aging population increases spending pressure on entitlement programs like Social Security and Medicare. [1, 2, 3]

Potential Impacts

· Higher Borrowing Costs: Increased national borrowing can push up interest rates for everyday consumer loans, mortgages, and credit cards. [1]

· Inflation Pressures: Rapid deficit growth risks fueling broader economic inflation and straining federal budgets. [1, 2]

· Policy Debates: Lawmakers remain sharply divided, with one side favoring spending and entitlement reforms and the other proposing increased taxes on corporations and high earners. [1]

· Explore current figures and datasets using the U.S. Treasury Fiscal Data. [1]

· Read a breakdown of the milestone from Associated Press. [1]

· View contextual analysis on the growth of the debt from Time. [1]

ATTACHMENT TWO – FROM FOX NEWS

U.S. DEBT BLOWS PAST $40 TRILLION, JEOPARDIZING QUALITY OF LIFE FOR EVERY AMERICAN

National debt is so incredible, it amounts to nearly $300,000 per US household

By Nicole Huyer and Michael Bicksel Fox News Published August 29, 2026 8:00am EDT

America’s national debt is climbing higher with few solutions in sight. Total public debt outstanding exceeded $40 trillion for the first time in history, or nearly $300,000 per household.

This figure should alarm every American, yet years of political promises of easy fixes have dulled the public’s sense of urgency.

As America races past the grim, $40-trillion milestone, it is essential to confront why such a high debt is an existential threat to our republic and what realistic solutions remain.

The most common benchmark is the debt-to-GDP ratio. Total U.S. public debt now exceeds 124% of GDP. Only a handful of countries rank worse — among them Sudan, Venezuela and stagnant developed economies like Japan, Greece and Italy.

No country should aspire to rank among the highest in this metric, yet America does.

The U.S. national debt his $40 trillion for the first time, and there is little relief in sight. (Fox News)

Even debt held by the public — over $32 trillion — stands near 100% of GDP. And, according to the Congressional Budget Office, it's projected to reach 120% by 2036.

A rising debt-to-GDP ratio signals America’s eroding capacity to service existing obligations without heavy reliance on borrowing. Overwhelming national debt slows economic growth, puts upward pressure on inflation and interest rates, reduces investor confidence, diminishes the American dollar’s standing as the global currency and may even spur a fiscal crisis.

These aren't just theoretical risks. Exorbitant debt produces concrete economic damage. One outcome is the crowding-out effect. Here’s how it works:

The government borrows to pay back debt obligations. It does so by selling bonds to finance deficits. This reduces the supply of available funds in the market. The result is upward pressure on interest rates and less capital for private investment. This makes it more difficult for businesses to borrow and invest in job creation, innovation and expansion or for individuals to take out loans.

In short, more debt means less free-flowing money in the economy.

The Congressional Budget Office estimates that for every dollar the deficit increases, private investment falls by 33 cents. Still, an additional $1 trillion in debt reduces long-run U.S. capital stock of productive assets by 0.7-0.8%. More government debt means less private capital formation, slower productivity growth and, ultimately, less money in the pockets of Americans.

These effects are quiet but damaging. Unlike sudden shocks to the economy — trade disruptions, technological developments or global conflicts — the debt compounds over time. It’s a handy tool for politicians to paper over today’s problems with massive amounts of spending while shifting the burden to future generations.

Some politicians have absurdly denied the danger of the debt, instead convincing the public that America can spend without limit. The theory undergirding that argument is Modern Monetary Theory (MMT) and has been advocated by Democrat New York Rep. Alexandria Ocasio-Cortez and Vermont Independent Sen. Bernie Sanders’ top economist.

A rising debt-to-GDP ratio signals America’s eroding capacity to service existing obligations without heavy reliance on borrowing.

They argue that an issuer of fiat currency as powerful as the United States can always spend its way out of crisis. Yet they disregard crowding-out effects, the erosion of consumer confidence and the fact that currency ultimately rests on real economic value. Treating the dollar as unlimited political fuel is a sure path to runaway inflation and a loss of fiscal credibility.

Prudent economic policy means confronting sustained levels of deficit spending and high national debt before the two grow further out of control. Net interest costs have already surpassed $1 trillion annually and are projected to climb sharply, reaching more than $2 trillion within a decade and consuming a greater share of federal revenues.

The straightforward solution is to eliminate federal deficits and balance the budget. Recent data records a $1.8 trillion deficit in 2025. The government must instead run a surplus and begin repaying its outstanding debt obligations.

Restraining spending growth — particularly in major entitlement programs driving long-term imbalances — and unleashing the American economy via policies that expand the productive private sector are essential. Incremental efficiency efforts, including state-level DOGE reform, help at the margin, but structural reform is necessary to ensure a sustainable budget.

Both parties spent the United States into this $40 trillion mess, so it is the bipartisan responsibility of lawmakers to commit themselves to decisive fiscal action now. Inaction guarantees higher interest payments, reduced private investment, diminished fiscal flexibility in times of crisis and a heavier tax or inflation burden on future generations.

The clock is ticking, and the choice is simple: Act now or mortgage America's future.

Michael Bicksel is a former member of the Heritage Foundation’s Young Leaders Program.

ATTACHMENT THREE – FROM AL JAZEERA

US DEBT HITS $40 TRILLION: WHO DOES WASHINGTON OWE AND WHY DOES IT MATTER?

By Shola Lawal Published On 20 Aug 202620 Aug 2026

|Updated: 21 Aug 2026 06:54 AM (GMT)Updated: 21 Aug 2026 06:54 AM (GMT)

Total United States debt has surpassed $40 trillion for the first time in history, according to a Department of the Treasury update on Wednesday.

Ballooning debt, especially during President Donald Trump’s second term, which began in January last year, has raised concerns about a looming fiscal crisis for some time, with economists fearing a toxic combination of heavy borrowing, increased spending and lower taxes could land the world’s biggest economy in crisis.

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US national debt passes record $40 trillion

The rising US debt comes despite Trump’s championing of cost-cutting and efficiency as a hallmark of his second term, with his Department of Government Efficiency (DOGE) initiative slashing between 250,000 and 350,000 federal jobs and cutting global aid since the start of last year.

In May 2023, the Congressional Budget Office (CBO) predicted that the US would reach the $40 trillion mark in 2028.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), a budget watchdog, said in a statement, “$40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another.”

Here’s what we know about why US debt is rising, and why it matters:

How fast is debt rising?

US debt is growing much faster in the 2020s than it did in previous decades.

Total debt, which includes debt owed to others and what the government owes itself, has doubled since January 2017, when Trump began his first term as president. US debt at the time was $19.95 trillion.

During Trump’s first term, public debt rose by $7.8 trillion, most of it because of the cost of the COVID-19 pandemic response. Since his return to office in January 2025, debt has grown by $3.8 trillion, bringing the total to $11.6 trillion across his two terms so far.

Under Joe Biden’s administration from 2021 to 2025, the government continued to borrow and spend heavily in response to the pandemic; debt rose by $8.4 trillion.

US debt hit $39 trillion in March this year, meaning it took fewer than five months to pile on an additional $1 trillion in debt.

By comparison, it took close to 200 years for total US debt to cross $1 trillion for the first time in 1981, according to an analysis by CRFB, although $1 trillion in 1981 would be worth $3.67 trillion in real terms today, after inflation is taken into account.

The CBO estimates that debt will rise from 101 percent of gross domestic product (GDP) in 2026 to 120 percent in 2036. That is well above the previous US record of 106 percent after World War II.

Why is debt ballooning?

“We can blame politicians, but very few voters will back up their deficit concerns with a willingness to personally accept new taxes or benefit reductions. Sacrifice is reserved for our political opponents.”

Here are some of the specific factors that experts say have contributed to the fast-rising US debt.

Crisis spending

There have been two major crises in nearly two decades, during which governments have needed to borrow and increase spending.

Low tax revenue

Experts say Democratic and Republican administrations alike have failed to rein in spending or raise taxes to close this gap.

The US spends about $7 trillion annually, with about 60 percent of that going to Social Security Administration (SSA) payments, health insurance including Medicare and Medicaid, and veterans’ care.

Revenues are inadequate to meet these expenses. For example, in July, the US brought in $334bn in individual income taxes, social insurance, corporate taxes and others, according to the Treasury Department.

However, it paid out $766bn, almost double the revenue, in social security, health insurance, national defence and interest payments.

Rising interest rates

Interest rates remained low until the pandemic hit, at which point the Federal Reserve raised rates to fight inflation.

Now, the US is paying about $1.1 trillion annually to service its debt, slightly more than it spends on defence. In the first 10 months of the 2026 budget year, interest costs have also eclipsed health insurance spending and are now the second-largest slice of spending after pensions. The US spends between $1.8 trillion and $2 trillion per year on federal retirement benefits – Social Security – and state or local public pensions combined, according to data from analysis group USA Facts.

What tax cuts has Trump introduced?

Despite these rising costs, Trump has implemented deep tax cuts for businesses, starting with his Tax Cuts and Jobs Act of 2017 during his first term, which slashed the corporate tax rate from 35 percent to 21 percent.

He followed that up in 2025 with his “One Beautiful Bill Act”, permanently entrenching the 2017 law. Although the bill also cut Medicaid spending by 12 percent, it raised the debt ceiling by nearly $5 trillion to allow for this.

At present, individual income taxes make up roughly half of federal revenues, compared with only 9 percent from corporate income taxes.

In between the two Trump presidencies, the Biden administration also spent heavily on infrastructure investment and clean energy subsidies.

Who does the US owe money to?

Public debt borrowed from domestic and foreign investors makes up 80 percent – roughly $32 trillion – of the gross debt, according to Treasury data.

Other creditors are mutual funds ($5.195 trillion), pension funds ($1.135 trillion), state and local governments ($1.636 trillion), commercial banks and depository institutions ($2.083 trillion) and other corporate and individual lenders ($6.660 trillion).

Internationally, the US is in debt to several countries and private investors. In 1970, total foreign debt holders accounted for 5 percent of gross debt, but by 2025, they made up 32 percent. That means while they are helping boost US economic activity, more of the country’s income is being sent abroad in the form of interest payments.

By 2025, the US owed Japan $1.203 trillion, the United Kingdom ($889bn), China ($683bn), as well as owing more than 30 other entities.

Separately, another 20 percent of the gross national debt – about $8 trillion – is owed intra-governmentally and therefore does not affect overall finances.

Could the Iran war trigger the next debt shock?

What does rising debt mean for the US economy?

Analysts say the rising debt could potentially create an economic crisis for the US, in the form of hyperinflation or higher interest rates, for example, if it goes unchecked.

As more debt piles on, there is a growing risk that private investment will fall because of safety concerns, and as a consequence, economic growth could slow down.

“We’re already paying the cost. This debt is slowing growth, pushing up interest rates, and worsening inflation,” Riedl of Brookings said.

In 2026, the US is expected to spend 19 percent of federal tax revenues on interest payments. That share is expected to rise to 20 percent in a decade and 50 percent in three decades, “even under the rosiest scenarios,” she added. “The longer we wait to make the difficult fiscal decisions, the more painful and drastic those reforms will be.”

Lawmakers may eventually be forced to respond with painful austerity measures such as higher taxes, analysts say. Social safety net programmes could also be at risk.

It could take years to resolve, experts warn, and the consequences could be intergenerational, with young people forced to pay more for many years.

The rest of the world would be affected too: the US is a cornerstone of the global economy, and a crisis there will likely hurt global markets.

The first correcting step, MacGuineas of CRFB said, is to commit to zero new borrowing immediately. Lawmakers must also set up a bipartisan fiscal commission to scrutinise the issues, she said. With a commitment to keep taxes low and reduce spending, while also engaging in a hugely expensive war in the Middle East, this may be difficult to achieve, analysts say.

ATTACHMENT FOUR – FROM NPR

3 THINGS TO KNOW ABOUT THE $40 TRILLION FEDERAL DEBT

By Scott Horsley August 20, 2026 12:50 PM ET

The Treasury Department reported this week that the U.S. federal debt had reached $40 trillion, an eye-popping level of red ink. Just the annual interest on that accumulated debt now tops a trillion dollars, making it the government's second-biggest expense, behind only Social Security.

Here are three things to know about the deepening financial hole the government is in.

HOW DID THE DEBT GET SO BIG?

For years, the government has spent more money than it collects in taxes. Some of that has been driven by political choices — to wage war, cut taxes or provide a more generous social safety net during the COVID-19 pandemic. But much of the growth in spending happens automatically, as baby boomers age into retirement, resulting in higher costs for Social Security and Medicare.

Historically, debt as a share of the economy tended to rise during recessions and then stabilize during economic expansions. More recently, the government has run large deficits even when the economy has been growing. The debt has doubled in size since 2017. And now the people who lend money to the government are demanding higher interest rates.

HOW DOES THIS AFFECT ME?

The federal debt affects all Americans indirectly, because it limits the government's ability to tackle other priorities. But it also affects some people more directly, by making it more expensive to borrow money.

More Americans are going bankrupt. What does that mean?

"When the government borrows this much and the rates for Treasurys go up, that brings up the rates for everything else, from mortgages to car loans to credit cards," says Michael Peterson, CEO of the Peter G. Peterson Foundation, which advocates for fiscal responsibility. Mortgage rates, for example, tend to rise and fall with the yield on 10-year Treasurys, and the rate on 30-year home loans has climbed to near 6.7%, according to Freddie Mac.

IS ANYONE IN WASHINGTON WORKING TO ADDRESS THE DEBT?

The Treasury Department has taken steps to limit the increase in long-term bond yields. Yields fell on Wednesday after Treasury Secretary Scott Bessent announced that the department would increase its buyback program for government bonds.

But the move does nothing to solve the underlying problem, and the effect was short-lived. The yields on 10- and 30-year Treasurys rebounded on Thursday. Earlier, the Treasury had taken steps to prop up the Japanese yen so that Japan would not be tempted to sell some of its own U.S. Treasurys. (Buying bonds pushes yields down, while selling pushes yields up.)

Ultimately, Congress will have to raise taxes, cut spending or — most likely — do both. While some lawmakers used to proudly say they were deficit hawks, fiscal discipline has generally fallen out of favor in Washington. But anxious signals from the bond market could change that.

"$40 trillion should be a wake-up call," said Carolyn Bourdeaux, executive director of the Concord Coalition, a deficit watchdog group. "Both parties helped bring us here, and both parties now have a responsibility to change course."

ATTACHMENT FIVE – FROM TANGLE

THE NATIONAL DEBT HITS $40 TRILLION.

Plus, Revolutionary War debt and the first national bank.

Good Tyrsday to you all. This is Managing Editor Ari Weitzman, here with my long sleeves on watching the mist roll back over the Adirondacks. I’m resisting the urge to get too autumnal too soon, but man — there’s nothing like a New England fall. The apple, it yearns for the picking; the cider press, it yearns for the apple; the managing editor, he yearns for the cider.

I’m feeling very grateful today. Indebted, if you will. Perhaps, as our national debt reaches an auspicious milestone, we should all feel that way. In today’s edition, I’m going to talk about why our debt is high and why it’s not going anywhere, then we’ll give a look back at debt in the early Republic. It’s a 13-minute read (25 minutes when adjusted for inflation).

Quick hits.

1. BREAKING: The Canadian government announced tariffs ranging from 15%–50% on approximately $20 billion worth of U.S. imports in retaliation for U.S. duties imposed on Saturday. Canada's tariffs will take effect on September 8. (The tariffs)

2. The Supreme Court issued an unsigned emergency order staying a lower court injunction on President Donald Trump’s executive order on mail-in ballots, which would direct the U.S. Postal Service to create lists of eligible voters in each state and possibly restrict delivery of mail-in ballots in states that do not cooperate. The majority found that a multi-state challenge to the action was premature because the order is yet to be implemented but allowed for subsequent challenges to possibly succeed. The Court’s three Democratic-appointed justices dissented. However, a separate federal injunction on the executive order remains in place. (The ruling)

3. Treasury Secretary Scott Bessent announced “Operation Economic Outcast” to sanction countries that do business with Iran in an effort to cut Iran off from the global economy. Bessent said these secondary sanctions would not immediately go into effect, calling the announcement a “warning shot.” (The announcement)

4. U.S. Southern Command said the military struck a boat in the Pacific Ocean that was allegedly trafficking drugs, killing two people. (The strike)

5. A significant wildfire near Reno, Nevada, is 27% contained as of Monday, according to local officials. The fire has injured seven people, destroyed over 30 homes, and forced approximately 63,000 people to evacuate the area. (The fire)

6. An independent arbitrator ruled that The Washington Post wrongfully terminated former opinion columnist Karen Attiah over social media posts related to the assassination of conservative activist Charlie Kirk, ordering the paper to reinstate her with back pay. (The order)

Today’s topic.

The national debt. On Tuesday, August 18, the Treasury Department announced that the debt held by the U.S. government surpassed $40 trillion, a record high. The national debt has more than doubled since 2017, and it increased from $39 trillion to $40 trillion in roughly the past five months. In response to the latest milestone, lawmakers from both parties called for new initiatives to reduce the debt.

Back up: The national debt is the total amount of money the U.S. government owes, whereas the national deficit is the net annual difference between government expenditures and revenues. In other words, the debt represents the sum of past deficits (minus any annual surpluses, which the government has run only four times in the past 50 years). Economists hold differing views on the importance of the national debt, but in recent years, a growing consensus has held that both the debt and deficit will create long-term challenges for the United States if fiscal trends continue.

Most federal spending goes toward individual benefit programs like Social Security and Medicare, in addition to national defense spending and debt interest payments. Annual spending has remained high or increased in the past two decades, while Congress has also approved multi–trillion-dollar additional spending packages in response to the Covid-19 pandemic. Simultaneously, Congress has cut individual and corporate tax rates.

Beyond the $40 trillion debt milestone, economists have raised concerns about the amount of debt held by the U.S. public (which excludes debt government departments owe other departments, in particular the Social Security trust fund) and the ratio of debt to gross domestic product (GDP). In 2001, publicly held debt as a share of GDP was 31.5%; today, it is nearly 100%.

Democrats also expressed alarm, with many blaming President Donald Trump’s policies for the worsening situation. “For a President and a Republican Party who have railed for years against the nation’s debt, it’s ironic that America is deeper than ever in the red under their leadership,” Sen. Dick Durbin (D-IL) said. “From Trump’s billionaire tax cuts to his war with Iran, it’s clear fiscal responsibility is the last thing on his mind.”

Treasury Secretary Scott Bessent suggested the $40 trillion figure was not a cause for unique concern. “There’s nothing magic about the 40-trillion number,” he said. “We can grow our way out of that.” Bessent also said he thinks there is a “very good chance” the deficit under the second Trump administration has peaked.

Today, we’ll hear views from the left and right about the national debt. Then, Managing Editor Ari Weitzman gives his take.

What the left is saying.

· Many on the left call out Republican policies for exacerbating the debt.

· Some argue that the health of the U.S. economy is a bigger concern.

· Others criticize Treasury Secretary Bessent’s fiscal strategy.

In MS NOW, Steve Benen wrote “Trump has some explaining to do.”

“The problem is getting worse faster than anyone expected,” Benen said. “As a candidate in 2024, [Trump] repeated his earlier promises [to reduce the deficit and start paying off the debt], before again delivering the opposite results: Trump has added nearly $4 trillion in debt since returning to the White House a year and a half ago. Trump and congressional Republicans are to blame: There’s no great mystery here. The debt is growing quickly as a direct result of GOP policies, including last year’s tax breaks for the wealthy and the war in Iran.”

“For decades, Republican officials have expressed hysterical concerns about ‘fiscal responsibility’ every time there’s been a Democratic president… The gap between what the government spends and what it takes in, GOP officials said, threatened to bankrupt the nation, crash the economy and ruin the lives of our children and grandchildren,” Benen wrote. “But as this year’s deficit approaches the $2 trillion mark, and the debt passes the $40 trillion mark, those same Republicans are suddenly silent on the issue.”

In Common Dreams, Dean Baker argued “the more important issue is to have a healthy economy with solid growth.”

“I have never been a deficit hawk, and I’m not about to change my religious affiliation now. But whatever we think of debt and deficits, there is one point that should be very clear: it has been run up almost entirely due to Republican tax cuts and their inept management of the economy,” Baker wrote. “Every Democratic president of the last half century has left with a deficit that was lower, measured as a share of GDP, than the one they came in with, except Obama, who left it unchanged. By contrast, every Republican president has left with a considerably higher deficit than what they inherited.”

“Here is where the big failure is. Trump’s war is leading to shortages… His tariffs have led to higher prices for a wide range of products, as has his mass deportations. Perhaps most importantly, Trump’s open corruption and self-dealing undermine confidence in the U.S. financial markets and business system more generally,” Baker said. “In the past, investors could view the United States markets as relatively clean and stable. Unlike in some other countries, getting your investment back didn’t depend on staying in the good graces of the political leadership. Under Trump, this is no longer true… That is not a good recipe for a stable economy with solid growth.”

In MS NOW, Anthony Coley said “the old Scott Bessent would be calling Treasury Secretary Scott Bessent’s bluff.”

“[Bessent] is responsible for financing a government whose gross national debt just crossed $40 trillion,” Coley wrote. “He entered office promoting a ‘3-3-3’ plan: 3% economic growth, 3 million more barrels of oil a day, or the equivalent from other energy sources, and a federal budget deficit reduced to 3% of gross domestic product by 2028. He is not on track to hit those goals. The nonpartisan Congressional Budget Office now estimates this year’s deficit at $2.1 trillion — about $200 billion worse than it projected in February and about twice as high as Bessent’s target of 3% of GDP.”

“America’s debt problem was built over decades by both parties. But this administration’s policies and choices have added substantially to it. This week’s bond selloff had many causes. Inflation fears, geopolitical turmoil and a broader global bond selloff all played roles. But the underlying problem is that Washington is borrowing enormous sums at increasingly expensive rates,” Coley said. “The fiction is not that a reckoning is coming tomorrow. The fiction is the assumption that the country can indefinitely run enormous deficits, pile trillions onto its debt, inject uncertainty into institutions investors rely on — and still expect the world to lend to us on favorable terms.”

What the right is saying.

· The right is concerned about the debt, with many saying the only solution is to reduce spending.

· Some express cautious optimism about Bessent’s and Trump’s plan.

· Others question whether the rising debt is the crisis it’s made out to be.

In Fox News, Les Rubin called the national debt a “crisis we can’t ignore any longer.”

“Today we are governed largely by professional politicians, many of whom have never signed the front of a paycheck or run a business. Their careers are spent in government, and they are focused on re-election, promising voters increasingly more, but not paying for these programs,” Rubin wrote. “A new wave of voices demands ever more expensive programs without a realistic plan to pay for them. ‘Tax the rich,’ they say. Every serious economist who has examined the numbers knows that approach cannot even close today’s deficits, let alone fund the additional spending proposed.”

“Reality requires growth-killing taxes on everyone if the spending continues to grow. Limited government and financial responsibility produced the richest and strongest nation the world has known, delivering a standard of living that outpaced other Western countries,” Rubin said. “Do we want to follow their path of lower growth and lower living standards? Of course not. We must control spending if we want to keep growing and avoid going over the fiscal cliff. At the moment, that is exactly where current policy is taking us.”

In Townhall, Dmitri Bolt said “Scott Bessent and President Trump have a plan.”

“Treasury Secretary Scott Bessent said Thursday that the only way out is to grow our way out of debt,” Bolt wrote. “That is a seriously tall order, because to reduce our debt through growth alone, the economy would need to outpace its historical GDP growth rate by roughly two to three times, year after year, for decades, something that is close to impossible. However, Vice President JD Vance said Thursday night that Bessent and President Trump have a ‘discreet’ plan to begin growing America out of its debt.”

“It remains unclear what the administration’s plan actually entails beyond pursuing stronger economic growth,” Bolt said. “That growth is certainly welcome, but it cannot do all the work. At some point, America will have to confront its unwillingness to restrain spending, or reform the entitlement programs pushing the debt ever higher. With the Democratic Socialists of America on the rise, however, that willingness appears to be at an all-time low.”

In the New York Post, Charles Gasparino suggested the “debt load is unlikely to cause a fiscal Armageddon.”

“If you’re worrying about a pending fiscal Armageddon over the country’s debt, it’s time to waste your cortisol spikes on something else,” Gasparino wrote. “On its face, the debt situation appears pretty bad. The US can’t stop spending (neither side, Democrats or Republicans, seem interested in entitlement reform) and buyers of our debt want a higher interest or risk premium ‘yield’ to be compensated for government profligacy. The higher yields suggest inflation is about to spike as well.”

“I’m no fan of deficits, particularly ones that run more than 100% of GDP. In theory, there’s only so much capital to go around. The people with the money — foreign investors (aka the Chinese), hedge funds, US pensions — can’t keep buying our debt forever,” Gasparino said. “The government needs to make smarter choices, that’s certain. In the meantime, though, don’t panic. A $40 trillion debt is nothing to crow about. But at the end of the day, it’s a figure, not a harbinger.”

What Ari Weitzman is saying.

· The national debt is driven by popular programs that politicians are unwilling to touch.

· Allocated spending is only part of the problem — revenue, emergency packages, and an aging population are all contributors.

· The $40 trillion number is scary, but we’re not past the point of no return — yet.

And as a unit, to the person, we look at the federal budget and say, “You cannot meaningfully reduce the federal deficit without reforming Social Security, Medicare, Medicaid, and defense spending.” In fact, we published that line — verbatim — in Isaac’s Friday piece about the failure of the Department of Government Efficiency (DOGE) to meaningfully address our recurring deficits.

I’m not setting up a sleight of hand in this piece. I have no surprising “one hidden fact” that will alchemize what I said above — it is just, plainly, true. For fiscal year 2025, the federal budget was just north of $7 trillion, or $7,011 billion to be precise. Of that budget, health spending (including Medicare and Medicaid) accounted for the largest share with $1,843 billion of appropriated spending (28%). Social Security was second with $1,581 billion (22.5%), and defense was fourth at $916 billion (13%). For a long time, defense spending was #3 — until 2024, when interest paid on our national debt passed it. In 2025, interest on the debt cost the American taxpayers $971 billion (13.8% of all federal spending). Together, these four categories comprise 77.3% of the entire federal budget.

This is a growing problem. As the debt increases, our interest payments increase, which limits the amount the government can spend on essential services for each dollar that it raises. It also creates a positive feedback cycle where any additional debt will be more costly, meaning our interest rates get higher, meaning our interest payments get larger, meaning debt becomes a larger part of our spending, meaning we need to borrow more, etc. This is not a problem that will just go away on its own. If we run the 2025 budget back for the next ten years, based on some back-of-the-napkin math, our national debt in 2036 will be nearly $55 trillion, and interest payments will comprise a full 20% of the federal budget.

There’s no hidden ideological boondoggle to rip out of the budget to solve this problem in one fell swoop. Say we reduced the entire Department of Homeland Security’s budget, with all its various immigration agencies, to $0: You’ve cut just over 1% of the federal budget. Axing all the acronymic programs threatened by DOGE or the Office of Management and Budget in the past 18 months brings you no closer — USAID, PBS, CFPB, USPS, and NASA all sum to well under 1%.

To reduce our recurring deficits, cuts simply have to come from spending categories #1, #2, and #4: healthcare, Social Security, and defense. If anyone in government were to suggest cuts to category #3, our debt payments, they would be gently ushered out of whatever room the adults are speaking in. Not that any solutions will come from that room. For all they may bluster publicly, Democrats are unwilling to slash the military budget (“Sorry, Ukraine and Taiwan, we’ve decided to abdicate the global geopolitical stage entirely”) while Republicans aren’t going to swallow hard and take an axe to Medicare or Social Security (at least not this era’s Republicans). Instead, Democrats demand the Pentagon “pass an audit,” Republicans scour the byzantine bureaucratic bowels for “waste, fraud, and abuse,” and independents say “let’s do both!”

Tangle editor, here: Let’s do both! But also: It’s not enough.

This is not a winning political message, but we’re not going to break through this budgetary rock wall by grinding down the mortar between the bricks. We’ve got to make like Andy Dufresne, get out our rock hammers, and chisel through that wall — and it will take us about as long as it took him to tunnel to freedom (in case you need to brush up on your cinema, it took Andy 19 years to tunnel out of Shawshank Penitentiary in The Shawshank Redemption). With a functional budgetary process, that’s probably how long it will take us to get our debt under control. Decades.

If you’ve been screaming at your screen about the obvious issue I’ve been missing for the past 700 words, I hear you. And I’ll grant your points one by one.

Yes, spending is only one side of the coin; federal revenue is also a part of the problem. As liberals are wont to argue, tax revenue is simply too low to fund current expenditures. Just consider this: Since 2015, total federal public debt (which excludes debt that parts of the government owe to other parts) has increased from $13.1 trillion (72% of GDP) to $32.3 trillion this week (roughly 100%). During that same span, federal spending on those “big four” categories has increased from 74.1% of the budget to 77.7%. Meanwhile, the big four accounted for 84% of federal revenue in 2015 but 104% (!) in 2025. That’s worth emphasizing, I think. Since 2023, these four categories alone have accounted for more than what the federal government has been able to raise!

Yes, growth and interest rates are part of the problem. As conservatives are wont to argue, we don’t need to raise tax rates if the amount of money taxpayers are earning is going up. When President Bill Clinton ran four straight budget surpluses in the late 1990s, he did so with the proportions of the federal budget allocated to defense, healthcare, Social Security, and debt interest only marginally lower than they are today. In fact, for Clinton’s last year in office, spending on the military was actually higher as a proportion of the budget. But he also oversaw a period of insane fiscal growth — and basically no emergency spending.

Yes (and relatedly), emergency spending is an enormous part of the problem. In Clinton’s second term, the largest allocation to occur outside the normal budgetary process was the 1998 Emergency Supplemental Appropriations Act (ESAA), which rolled international peacekeeping, United Nations payments, Y2K remediation, and census funding into one — and cost $17.9 billion. In 2025, the American Relief Act (ARA) that funded an emergency response to Hurricanes Milton and Helene cost roughly $110 billion, about five times greater than the ESAA allocation, before adjusting for inflation. Speaking of, the Inflation Reduction Act (IRA) allocated roughly four times the spending as the ARA. Covid relief, across Presidents Trump and Biden… roughly ten times the IRA.

Yes to all of that. Yes, every administration since Clinton has fueled the budgetary fire by increasing spending, without raising enough to pay for it, and then poured gasoline on that fire with some giant emergency spending package. Yes, it’s everyone’s fault, and yes, President Trump is making it worse. But those factors only make it harder, not easier, to reduce the budget. We now have to underspend federal revenues, hoping that any emergency spending doesn’t break the bank, for years on end. We also have to raise revenues to cover spending, but not so high as to strangle growth — also for years on end. And we have to simultaneously grow the economy without stimulating it so much that we drive inflation or raise too little in taxes and allow deficits to soar. Meanwhile, our aging population means Social Security and healthcare costs will stay high, and international threats aren’t going to concern themselves with our accounting problems.

That’s the bad news. The good news is that we still have time. We’re swimming in deep water, sure, but we’re not drowning just yet. In a meeting with our video team yesterday, I mentioned to our new producer Michele that we were covering the national debt today. He asked me what the current debt-to-GDP ratio is (remember, it’s 100% for public debt, 125% for all government debt). He heard those numbers and nodded — okay, not that bad. Michele is Italian. Italy’s been redlining its debt for decades, and its current ratio sits at 135%. In Japan, it’s over 235%.

Italy and Japan have severe fiscal problems, but they are still functional countries. We can be functional while solving our problems, too. And we know what to do: Sustained years of compromise between cutting spending and raising taxes is our ticket back to a debt-to-GDP ratio under 100%.

Of course, the other bad news is that if you think we have a political ecosystem functional enough to commit to that time, well… it must be your first day here.

Take the survey: How would you address the national debt and deficit? Let us know.

Disagree? That’s okay. Our opinion is just one of many. Write in and let us know why, and we’ll consider publishing your feedback.

A DEEPER LOOK...

ATTACHMENT SIX – FROM TANGLE

The First Bank of the United States in Philadelphia, Pennsylvania

In the 1770s, as the Continental Congress struggled to support its military efforts in the American Revolution, it turned to France for military supplies and monetary loans. This aid was controversial even at the time — American diplomats weren’t sure whether the support was a gift or a loan, and disputes over French support led to one diplomat being congressionally recalled. As fighting between the Americans and the British continued, John Adams secured additional loans from Dutch bankers.

When the U.S. secured its independence in 1783, the new federal government faced its mounting debt — but the Articles of Confederation didn’t give it the ability to raise the revenue needed to pay off its loans. This created a financial crisis in the 1780s, as the U.S. defaulted on its obligations to France and sought even more loans from the Dutch. This crisis partially catalyzed the ratification of the new Constitution in 1789, which finally gave the federal government the power to impose taxes to raise revenue. Even so, the government had accrued roughly $75 million in debt by January 1791.

In December 1790, hoping to avoid the economic crises of the 1780s and put the U.S. on better financial footing, newly minted Treasury Secretary Alexander Hamilton presented Congress with a bold plan for a national bank modeled after the Bank of England. The new bank would be able to print money, hold public funds, collect taxes, and pay government debts. Despite Secretary of State Thomas Jefferson’s concerns, the plan passed both houses of Congress, and President George Washington signed it into law in February 1791. Following the ratification of the Constitution and the creation of the bank, the U.S. was able to resume debt payments, though its debts with France wouldn’t be settled until 1795.

ATTACHMENT SEVEN – FROM DEBT CLOCK

Current Debt

38.52T

Debt-to-GDP

130.6%

Debt per Person

$114,136

Annual Interest

952.00B

Year	Total Debt	Debt/GDP	Per Person	Deficit	Interest	President
2025 Projected FY2025	38.52T	130.6%	$114,136	-1,850,000,000,000	952.00B	Donald Trump
2024 2024 official year-end (122.9%)	35.46T	122.9%	$105,423	-1,832,800,000,000	882.00B	Joe Biden
2023 First $33T	33.17T	121.2%	$99,034	-1,695,241,000,000	658.95B	Joe Biden
2022	30.82T	121%	$92,486	-1,375,401,000,000	474.72B	Joe Biden
2021	28.43T	121.9%	$85,660	-2,775,581,000,000	352.26B	Joe Biden
2020 COVID-19 pandemic	26.95T	127.9%	$81,778	-3,131,917,000,000	345.45B	Donald Trump
2019	22.72T	106.3%	$69,214	-984,388,000,000	375.58B	Donald Trump
2018	21.46T	104.5%	$65,599	-779,048,000,000	325.03B	Donald Trump
2017 First $20T	20.24T	103.9%	$62,264	-665,712,000,000	262.73B	Donald Trump
2016	19.54T	104.4%	$60,465	-584,651,000,000	240.00B	Barack Obama
2015	18.12T	99.5%	$56,496	-438,496,000,000	223.18B	Barack Obama
2014	17.79T	101.6%	$55,874	-484,602,000,000	228.97B	Barack Obama
2013	16.72T	99.6%	$52,888	-679,544,000,000	220.85B	Barack Obama
2012	16.05T	99.1%	$51,134	-1,086,963,000,000	220.39B	Barack Obama
2011 S&P downgrade	14.76T	95%	$47,390	-1,299,591,000,000	230.04B	Barack Obama
2010	13.53T	90.2%	$43,726	-1,294,373,000,000	196.19B	Barack Obama
2009 Great Recession stimulus	11.88T	82.2%	$38,710	-1,412,688,000,000	187.26B	Barack Obama
2008 First $10T, financial crisis	9.99T	67.9%	$32,838	-458,553,000,000	252.76B	George W. Bush
2007	8.95T	61.9%	$29,714	-160,701,000,000	237.11B	George W. Bush
2006	8.45T	61.2%	$28,322	-248,181,000,000	226.60B	George W. Bush
2005	7.91T	60.6%	$26,748	-318,346,000,000	184.00B	George W. Bush
2004	7.35T	60.2%	$25,118	-412,727,000,000	160.25B	George W. Bush
2003	6.76T	59%	$23,302	-377,585,000,000	153.07B	George W. Bush
2002	6.20T	56.7%	$21,542	-157,758,000,000	170.95B	George W. Bush
2001 9/11, surplus	5.77T	54.5%	$20,239	+128.24B	206.17B	George W. Bush
2000 Surplus	5.63T	54.9%	$19,950	+236.24B	222.95B	Bill Clinton
1999 Surplus	5.61T	58.2%	$20,089	+125.61B	229.77B	Bill Clinton
1998 Surplus	5.48T	60.5%	$19,859	+69.27B	241.15B	Bill Clinton
1997	5.37T	62.6%	$19,691	-21,884,000,000	244.01B	Bill Clinton
1996	5.18T	64.2%	$19,234	-107,431,000,000	241.09B	Bill Clinton
1995	4.92T	64.4%	$18,481	-163,952,000,000	232.17B	Bill Clinton
1994	4.64T	63.7%	$17,645	-203,186,000,000	202.96B	Bill Clinton
1993	4.35T	63.4%	$16,740	-255,051,000,000	198.81B	Bill Clinton
1992	4.00T	61.4%	$15,601	-290,321,000,000	199.38B	George H.W. Bush
1991	3.60T	58.4%	$14,224	-269,238,000,000	194.50B	George H.W. Bush
1990	3.21T	53.8%	$12,844	-221,036,000,000	184.20B	George H.W. Bush
1989	2.86T	50.5%	$11,576	-152,639,000,000	169.02B	George H.W. Bush
1988	2.60T	49.5%	$10,638	-155,178,000,000	151.74B	Ronald Reagan
1987	2.35T	48.2%	$9,682	-149,730,000,000	138.65B	Ronald Reagan
1986	2.12T	46.2%	$8,831	-221,227,000,000	136.00B	Ronald Reagan
1985	1.82T	41.9%	$7,662	-212,308,000,000	129.46B	Ronald Reagan
1984	1.57T	38.9%	$6,668	-185,367,000,000	111.09B	Ronald Reagan
1983	1.37T	37.7%	$5,867	-207,802,000,000	89.77B	Ronald Reagan
1982 First $1T	1.14T	34%	$4,909	-127,977,000,000	85.05B	Ronald Reagan
1981	997.86B	31.1%	$4,349	-78,968,000,000	68.75B	Ronald Reagan
1980	907.70B	31.7%	$3,994	-73,830,000,000	52.53B	Jimmy Carter
1975	533.19B	31.6%	$2,468	-53,242,000,000	23.24B	Gerald Ford
1970	370.92B	34.6%	$1,809	-2,842,000,000	14.38B	Richard Nixon
1965	317.27B	44.1%	$1,633	-1,411,000,000	10.36B	Lyndon B. Johnson
1960	286.33B	53.3%	$1,585	+301.00M	9.18B	Dwight D. Eisenhower
1955	274.37B	66.2%	$1,653	-2,993,000,000	6.37B	Dwight D. Eisenhower
1950	256.85B	85.6%	$1,687	-3,119,000,000	5.75B	Harry S. Truman
1945 WWII peak	258.68B	113.5%	$1,849	-47,553,000,000	3.62B	Franklin D. Roosevelt
1940	42.97B	42.4%	$325	-2,920,000,000	1.04B	Franklin D. Roosevelt

About This Data

The U.S. national debt represents the total amount of money the federal government has borrowed over time to cover budget deficits. When the government spends more than it collects in taxes and other revenue, it borrows the difference by issuing Treasury securities (bonds, notes, and bills).

The data in this table comes from the U.S. Treasury Department's "Historical Debt Outstanding" dataset and the "Debt to the Penny" API. Figures are reported at the end of each fiscal year (September 30). GDP figures come from the Bureau of Economic Analysis, and population data from the U.S. Census Bureau.

Key milestones: The debt first reached $1 trillion in 1982, $10 trillion in 2008, $20 trillion in 2017, $30 trillion in 2023, and exceeded $38 trillion in 2025. The COVID-19 pandemic in 2020 caused the single largest one-year increase at over $4.2 trillion.

Sources & Methodology

· Primary Source: U.S. Treasury Fiscal Data

· Coverage: 1940 to 2025

· Last Updated: March 1, 2026

· License: Public domain (U.S. government data)

When citing this data, please use: "Source: US-Debt-Clock.com, U.S. National Debt by Year (1940–2025), accessed August 2026."

Frequently Asked Questions

How much is the U.S. national debt in 2025?

As of fiscal year 2025, the U.S. national debt is approximately $38.5 trillion. This includes both debt held by the public (~$30.8 trillion) and intragovernmental holdings (~$7.7 trillion). The debt grows by roughly $5-6 billion per day.

When did the national debt first reach $1 trillion?

The U.S. national debt first exceeded $1 trillion in fiscal year 1982, during Ronald Reagan's first term. It took the country 206 years (1776-1982) to accumulate the first $1 trillion of debt. By contrast, the debt now grows by $1 trillion approximately every 100 days.

How fast is the national debt growing?

The national debt is growing at roughly $5-6 billion per day, or about $1.8-2 trillion per year. The pace has accelerated dramatically: it took 40 years to go from $1T to $10T (1982-2008), but only 17 years to go from $10T to $38T (2008-2025).

What is the difference between total debt and debt held by the public?

Total national debt includes two components: (1) Debt held by the public — bonds held by individuals, institutions, foreign governments, and the Federal Reserve (~80% of total); and (2) Intragovernmental holdings — money the government owes to itself through trust funds like Social Security (~20% of total).

Where can I download U.S. national debt data?

You can download our complete U.S. national debt dataset as a free CSV file from this page. The dataset includes total debt, debt held by public, GDP, debt-to-GDP ratio, population, debt per person, annual deficit, and interest on debt for every year from 1940 to 2025. The primary source is the U.S. Treasury Fiscal Data API.

ATTACHMENT EIGHT – FROM CBS

NATIONAL DEBT TOPS $40 TRILLION AFTER DOUBLING IN LESS THAN A DECADE, TREASURY DATA SHOWS

By Mary Cunningham Updated on: August 21, 2026 / 7:49 AM EDT / CBS News

The national debt topped $40 trillion, according to Treasury Department data released on Wednesday, representing a fiscal milestone that underscores the federal government's mounting borrowing and interest costs.

The Treasury Department's daily financial report shows that the nation's debt reached $40.05 trillion on August 18, more than double its level in 2017. The federal debt has ballooned because government spending is outstripping revenue, forcing the U.S. to borrow more money to cover the shortfall.

"We've been running deficits for the last 26 years, and we've basically ignored a lot of the structural challenges that exist in our budget that are very well known," Michael Peterson, CEO of the nonpartisan Peter G. Peterson Foundation, told CBS News. "It's clearly been accelerating because, like any debt problem, the longer you ignore it, the worse it gets."

Analysts say the nation's debt growth isn't likely to slow. "We're going the wrong way," said Dean Baker, the co-founder of the economic think tank Center for Economic and Policy Research. He cited the increase in military spending, which he said has exacerbated the country's fiscal burden.

The Peterson Foundation estimates that the national debt could reach $50 trillion in six years if the country does not make spending or tax reforms.

What is driving up the federal debt?

Net interest costs, which approached $1 trillion in 2025 and accounted for nearly 14% of the nation's spending, are only part of the problem.

Several other factors have fueled the national debt, with economists holding differing opinions on the primary drivers.

The number of people collecting benefits from Social Security and Medicare has increased as the U.S. population ages, making the programs more expensive, while other spending has also increased, such as on interest payments.

At the same time, a combination of tax cuts over the last two decades has decreased the nation's revenue. The Congressional Budget Office estimates that the Trump administration's One Big Beautiful Bill, passed last year, will add $4.2 trillion to the national debt through fiscal year 2034.

While policy decisions have contributed, the debt problem can't be tied to one specific administration, Peterson told CBS News.

"Many administrations and many Congresses have taken steps in the wrong direction," he told CBS News.

Larger economic crises, including the Great Recession of 2008 and the COVID-19 pandemic, have also triggered spikes in the nation's debt, as the Treasury Department shows.

Analysts told CBS News that the rising federal debt could hinder the country's ability to handle future economic shocks.

"AI disruption, a recession, global war or any number of other events could quickly push us over the edge from a challenge into a full-blown crisis," Margaret Spellings, president and CEO of the Bipartisan Policy Center, a Washington, D.C.-based think tank, said in an email.

What does the federal debt mean for you?

The public holds about 80% of the nation's debt, according to the Peterson Foundation. Of that, more than two-thirds is held by domestic lenders such as mutual funds and the Federal Reserve System, while foreign investors hold the rest.

Taxpayers could also bear the brunt of rising federal debt because as the government issues more Treasury securities to fund government spending, it must offer higher yields to attract investors. That could contribute to higher interest rates for mortgages and other credit products.

"If the Treasury rate is going up, that means your mortgage rate is going up, your car loan is going up, your credit card rates are going up," Peterson said.

Higher interest payments can also make it more difficult for the federal government to find the money to fund core programs, a phenomenon Peterson referred to as "crowding out."

"It's typically called crowding out when the interest costs represent such a big chunk of the budget that it puts downward pressure on every other program across the budget, and puts upward pressure on taxes because you know we need more money in the system to cover these interest costs," he said.

Not everyone agrees that the nation's soaring debt could pose an economic threat. Baker, for one, is less concerned about the consequences, noting that a strong U.S. economy should allow the federal government to continue to shoulder the growing financial burden.

The more immediate economic threats facing the U.S. are tariffs and the Iran war's impact on prices, he said. He also warned that investors could pull their money out of the U.S. if what some believe is an artificial intelligence bubble were to burst.

ATTACHMENT NINE – AI OVERVIEW

The American standard of living is high in terms of average GDP per capita and material goods like large homes and cheap consumer items. However, high costs for healthcare, housing, and childcare, paired with wide income inequality, leave many middle- and lower-income households feeling financially insecure. [1, 2, 3, 4, 5, 6]

Key Economic Indicators

· GDP Per Capita: Reached over $70,000, showing strong overall national output.

· Poverty Line: Set at $33,000 for a family of four, with a national poverty rate near 10.6%.

· Middle-Class Wealth: Average household net worth hovers around $496,000. [1]

Major Cost Pressures

· Housing: Average home prices near $486,000 and average monthly rents around $1,890 strain affordability.

· Family Care: Annual child care costs average over $29,000 for two young children.

· Healthcare & Debt: High out-of-pocket medical and insurance expenses lead to significant household debt compared to other wealthy nations. [1, 3, 4]

ATTACHMENT TEN – DEBT AS % OF GDP

Country

Afghanistanno data

Albania59.23

Algeria46.2

Angola62.5

Antigua and Barbuda67.06

Argentina85.33

Armenia50.3

Australia36.79

Austria62.12

Azerbaijan20.85

Bahamas, The77.79

Bahrain134.01

Bangladesh40.13

Barbados104.38

Belarusno data

Belgium85.43

Belize60.95

Benin54.03

Bhutan107.78

Bolivia100.86

Bosnia and Herzegovina32.75

Botswana32.79

Brazil83.48

Brunei Darussalam2.29

Bulgaria23.55

Burkina Faso52.69

Burundi43.18

Cabo Verde113.74

Cambodiano data

Cameroon39.54

Canada52

Central African Republic60.67

Chad33.8

Chile41.65

China, People's Republic ofno data

Colombiano data

Comoros30.82

Congo, Dem. Rep. of theno data

Congo, Republic of95.44

Costa Rica59.78

Côte d'Ivoire59.25

Croatia56.52

Cyprus100.19

Czech Republic43.81

Denmark20.24

Djibouti33.25

Dominica104.35

Dominican Republic46.12

Ecuadorno data

Egyptno data

El Salvador56.19

Equatorial Guinea36.2

Eritreano data

Estonia23.06

Eswatini37.21

Ethiopiano data

Fiji76.95

Finland82.05

France94.34

Gabon73.4

Gambia, The73.49

Georgiano data

Germany43.97

Ghana70.51

Greece169.99

Grenada73.18

Guatemala28.24

Guinea47.84

Guinea-Bissau82.29

Guyana24.27

Haiti14.95

Honduras47.87

Hong Kong SARno data

Hungary74.49

Iceland59.94

India53.82

Indonesia39.21

Iran36.85

Iraq42.91

Ireland44.79

Israel66.46

Italy132.5

Jamaica69.92

Japan200.93

Jordan95.9

Kazakhstan24.95

Kenya65.59

Kiribati9.92

Korea, Republic of44.77

Kuwait3.04

Kyrgyz Republic36.64

Lao P.D.R.96.45

Latvia47.39

Lebanon164.13

Lesotho59.75

Liberia56.47

Libyano data

Lithuania37.65

Luxembourgno data

Madagascar50.41

Malawi74.38

Malaysia62.62

Maldives133.95

Mali51.83

Malta46.58

Marshall Islandsno data

Mauritania44.92

Mauritiusno data

Mexico45.45

Micronesia, Fed. States ofno data

Moldova37.57

Mongolia38.95

Montenegrono data

Morocco70.03

Mozambique96.63

Myanmar61.3

Namibia67.7

Nauruno data

Nepal47.87

Netherlandsno data

New Zealand51.15

Nicaragua39.12

Niger47.17

Nigeria49.66

North Macedonia60.67

Norway14.88

Oman35.51

Pakistan70.07

Panamano data

Papua New Guinea53.7

Paraguay38.17

Peruno data

Philippinesno data

Poland45.04

Portugal101.54

Qatar40.84

Romania54.73

Russian Federationno data

Rwanda67.24

Saint Kitts and Nevisno data

Saint Lucia74.77

Saint Vincent and the Grenadines91.61

Samoa27.71

San Marino65.19

São Tomé and Príncipe43.46

Saudi Arabia29.87

Senegal113.67

Serbia47.2

Seychelles57.8

Sierra Leone43

Singapore177

Slovak Republic64.04

Slovenia61.59

Solomon Islands22.02

South Africa76.36

South Sudan, Republic of54.32

Spain93.57

Sri Lanka99.43

Sudan271.98

Suriname87.22

Sweden34.43

Switzerland13.65

Syriano data

Taiwan Province of China244.74

Tajikistanno data

Tanzaniano data

Thailand56.57

Timor-Leste12.85

Togo70.62

Tonga39.43

Trinidad and Tobago64.48

Tunisia83.13

Türkiye, Republic of21.32

Turkmenistan4.62

Tuvalu3.87

Uganda51.83

Ukraineno data

United Arab Emiratesno data

United Kingdom100.72

United States102.69

Uruguay58.33

Uzbekistanno data

Vanuatu44.6

Venezuelano data

Vietnamno data

West Bank and Gazano data

Yemen70.94

Zambia114.94

Zimbabwe94.59

ATTACHMENT ELEVEN – FROM STANDARDOFLIVING.ORG

The Standard of Living Index was created with the goal of creating a holistic scoring system to measure every facet of a country’s standard of living. Countries are scored based on nine weighted categories:

A) human rights (25%), B) democracy (18%), C) freedom (12%), D) economy (12%), E) health (10%), F) corruption (8%), G) competency (5%), H) future (5%), and I) actions abroad (5%). Countries are sorted into categories representing a range of ten points (blue is the highest, and black is the lowest). Pages for each country can be found under these categories in the banner at the top of the page.

		A	B	C	D	E	F	G	H	I
Norway	97.43	100	94	93	100	100	100	100	100	87	0.0684	Northern Europe
Finland	97.21	96	99	93	94	100	100	97	99	91	0.0699	Northern Europe
Ireland	96.08	100	98	91	100	98	84	95	95	90	0.0632	Northern Europe
Netherlands	95.26	96	94	92	100	100	100	97	88	84	0.2268	Western Europe
Iceland	94.77	98	97	89	95	100	91	99	70	100	0.0047	Northern Europe
Luxembourg	94.63	100	95	78	97	100	91	100	95	90	0.008	Western Europe
Uruguay	94.43	98	100	100	87	92	98	96	78	75	0.0447	South America
Denmark	94.29	96	95	83	96	100	97	98	95	86	0.0747	Northern Europe
San Marino	94.2	100	100	86	100	100	81	80	85	83	0.000424	Western Europe
Realm of NZ	94.06	93	92	95	100	96	100	95	90	80	0.0649	Oceania
Switzerland	93.97	91	97	88	100	100	100	92	96	76	0.11	Western Europe
Estonia	93.95	92	98	100	89	96	86	98	95	90	0.0168	Northern Europe
Sweden	93.27	97	93	86	93	100	95	94	96	74	0.132	Northern Europe
Canada	91.03	94	95	81	94	98	81	95	94	74	0.487	North America
Austria	91.02	96	92	84	92	98	87	92	82	80	0.113	Western Europe
Costa Rica	90.84	90	100	96	71	95	80	91	97	100	0.0651	Central America
Portugal	90.82	91	98	100	88	100	69	87	88	72	0.13	Western Europe
Northern Europe	90.6
Belgium	90.4	98	91	87	95	96	86	64	85	75	0.146	Western Europe
Germany	88.07	94	93	77	93	97	86	91	45	81	1.05	Western Europe
Slovenia	87.82	90	96	77	99	100	64	87	85	64	0.0256	Southern Europe
Czechia	87.34	88	91	93	99	92	54	78	85	85	0.133	Central Europe
Taiwan	87.14	91	92	81	100	100	82	58	66	67	0.294	East Asia
Western Europe	86.89
Andorra	86.88	82	86	80	90	97	85	75	90	95	0.001	Western Europe
Slovakia	86.71	87	91	84	99	94	59	80	85	85	0.0684	Central Europe
Japan	86.55	82	94	88	85	100	99	95	33	81	1.58	East Asia
South Korea	86.46	82	94	78	91	95	87	89	84	73	0.651	East Asia
Malta	86.28	81	92	84	99	96	78	84	93	60	0.0065	Southern Europe
Lithuania	85.14	86	95	86	93	84	57	77	95	70	0.0352	Northern Europe
Australia	84.99	89	95	71	91	87	90	73	60	73	0.327	Oceania
North America	84.4	84.5	89	84.5	88.5	89	83	85	70.5	64.5	4.717
France	83.79	81	97	79	80	92	77	80	79	58	0.8626	Western Europe
Croatia	81.82	81	85	88	87	95	54	71	85	73	0.049	Southern Europe
Liechtenstein	81.3	91	30	82	94	100	96	97	90	100	0.0005	Western Europe
Chile	81.08	70	96	84	75	83	80	86	91	77	0.248	South America
US	77.76	75	83	88	83	80	85	75	46	55	4.23	North America
Latvia	76.98	83	92	76	83	86	68	61	54	70	0.0236	Northern Europe
UK	76.89	83	76	56	85	93	83	78	59	55	0.843	Northern Europe
Monaco	76.48	83	25	86	100	98	67	90	95	90	0.0005	Western Europe
Palau	76.39	70	100	81	74	76	73	67	10	100	0.0002	Oceania
Mauritius	76.38	71	93	67	78	81	78	73	40	90	0.016	South Africa
Italy	76.24	78	88	86	81	100	32	61	40	65	0.744	Western Europe
Central Europe	76.19
Cabo Verde	75.9	82	96	93	59	44	51	53	71	100	0.0071	West Africa
Barbados	75.75	68	94	96	78	75	60	54	66	65	0.0036	Caribbean
Cyprus	75.59	84	86	81	83	100	36	57	52	22	0.0112	Southern Europe
Panama	74.46	71	97	81	76	81	17	64	76	79	0.0539	Central America
Argentina	73.58	86	89	92	63	88	9	50	65	43	0.577	South America
Spain	73.5	81	83	68	69	100	59	58	38	47	0.596	Western Europe
Tuvalu	72.43	75	92	91	54	53	74	69	1	100	0.000134	Oceania
The Bahamas	72.27	58	88	87	77	69	70	60	45	90	0.005	Caribbean
Seychelles	71.81	75	82	64	73	77	68	64	55	59	0.00125	East Africa
Greece	71.32	82	87	82	73	92	27	35	33	40	0.135	Southern Europe
St. Lucia	70.59	69	91	82	55	80	64	65	40	44	0.00225	Caribbean
SV&G	69.34	70	85	86	62	71	61	58	52	44	0.00139	Caribbean
Poland	67.77	77	74	64	85	91	36	44	24	46	0.48	Central Europe
A&B	67.6	62	88	82	72	73	41	36	55	55	0.0013	Caribbean
Romania	67.37	67	91	72	72	54	22	58	68	70	0.242	Eastern Europe
Southern Europe	66.53
Ecuador	66.26	74	77	75	63	78	13	55	65	50	0.226	South America
Singapore	65.78	58	34	21	97	100	100	100	90	70	0.0686	Southeast Asia
SK&N	65.15	65	77	88	59	72	45	45	50	37	0.00068	Caribbean
North Macedonia	65.07	74	71	67	64	69	24	45	70	70	0.0231	Southern Europe
Oceania	64.81
Marshall Islands	64.05	71	95	87	37	21	74	23	13	90	0.0007	Oceania
South Africa	64.05	73	91	84	45	42	18	38	45	83	0.757	South Africa
Dominica	64.02	60	82	86	33	66	46	54	50	90	0.0009	Caribbean
Mongolia	63.79	68	84	68	61	44	28	48	77	66	0.0432	East Asia
Albania	63.68	68	73	76	67	66	16	45	65	60	0.0357	Southern Europe
Hungary	62.93	68	68	58	78	72	29	67	45	45	0.122	Central Europe
Guyana	62.03	66	62	73	54	71	16	67	90	58	0.0094	South America
Moldova	61.71	68	61	65	82	53	23	43	76	60	0.0327	Eastern Europe
FSM	61.55	72	88	81	43	34	31	34	19	86	0.0013	Oceania
Namibia	61.45	67	69	87	47	28	55	46	67	67	0.0321	South Africa
Trinidad	61.24	57	89	82	57	67	23	61	45	66	0.0172	Caribbean
Botswana	61.07	77	56	61	43	34	72	47	78	77	0.0304	South Africa
Bulgaria	60.41	46	85	64	80	72	21	33	56	60	0.0822	Eastern Europe
Georgia	59.31	66	36	65	70	70	76	57	60	24	0.047	Middle East
Kosovo	59.27	78	48	64	77	63	27	37	40	38	0.0225	Southern Europe
Vanuatu	58.82	71	77	72	39	48	33	26	13	90	0.00376	Oceania
Fiji	58.58	78	68	56	54	46	38	62	13	45	0.0113	Oceania
ST&P	58.37	83	77	85	14	32	6	4	90	70	0.0027	Central Africa
Ghana	57.92	64	84	73	30	33	8	55	80	75	0.388	West Africa
TRNC	57.41	62	63	69	73	78	16	19	40	30	0.0048	Southern Europe
South America	57.24
Kiribati	57.15	62	99	90	29	12	45	30	1	64	0.0015	Oceania
Samoa	56.66	58	51	61	65	72	52	24	19	85	0.00252	Oceania
Montenegro	56.63	62	50	44	63	69	23	66	75	70	0.0078	Southern Europe
Grenada	56.39	61	79	76	34	57	24	17	34	71	0.0014	Caribbean
Bhutan	56.34	62	73	50	61	42	82	55	57	72	0.0095	South Asia
Caribbean	56.14	50.75
Colombia	55.66	34	81	75	58	66	19	38	80	52	0.643	South America
Tunisia	54.95	53	44	56	72	79	24	61	38	73	0.148	North Africa
East Asia	54.68
Malaysia	54.54	31	53	23	92	81	70	74	63	58	0.412	Southeast Asia
Paraguay	54.42	46	68	74	57	54	17	33	59	72	0.0926	South America
Mexico	54.39	36	78	71	64	76	5	31	60	52	1.59	Central America
Jamaica	54.2	34	72	82	53	63	28	45	45	70	0.0345	Caribbean
Nauru	54	61	91	77	56	29	17	38	1	4	0.00015	Oceania
Solomon Islands	53.85	73	73	77	28	43	7	28	15	57	0.00916	Oceania
Peru	53.5	45	69	64	57	62	12	8	82	73	0.416	South America
Senegal	52.61	46	65	69	30	38	41	53	80	76	0.217	West Africa
Belize	52.52	32	89	72	42	59	9	22	63	79	0.0054	Central America
El Salvador	52.23	28	84	73	51	49	21	36	76	61	0.086	Central America
Indonesia	52.13	42	79	34	65	56	6	45	70	74	3.42	Southeast Asia
Qatar	51.77	33	20	26	88	92	93	95	33	64	0.0353	Middle East
Algeria	50.83	48	36	32	74	78	25	60	65	63	0.572	North Africa
Median Country	50.83	46	63	60	57	59	23	43	55	61
Ukraine	50.7	27	64	61	76	66	13	33	64	70	0.517	Eastern Europe
The Gambia	50.58	58	68	65	32	15	12	39	80	80	0.0313	West Africa
Central America	50.42
Maldives	50.38	43	54	37	67	72	36	76	1	70	0.0048	Southern Asia
Tonga	50.09	63	33	68	55	59	23	39	18	61	0.00125	Oceania
Morocco	50.07	48	33	35	72	74	38	64	77	36	0.46	North Africa
Philippines	48.96	27	68	66	66	48	11	23	74	72	1.41	Southeast Asia
Average Country	48.59	45.45	52.84	49.96	53.5	54.02	33.14	41.35	51.25	53.97	100
Timor-Leste	48.52	59	72	61	23	16	1	28	83	70	0.0166	Southeast Asia
Sri Lanka	48.46	34	55	31	68	77	21	48	58	70	0.279	Southern Asia
Nepal	48.21	45	67	58	48	36	1	39	77	54	0.368	Southern Asia
Israel	47.72	16	74	63	77	78	45	21	33	-10	0.12	Middle East
Somaliland	47.5	57	71	48	19	39	1	36	68	65	0.071	East Africa
Serbia	47.26	53	33	46	61	72	21	52	39	36	0.0865	Southern Europe
BiH	46.16	63	27	58	39	60	32	24	50	33	0.0419	Southern Europe
Thailand	45.29	39	13	18	90	88	23	54	74	64	0.84	Southeast Asia
Gabon	44.79	48	5	46	62	55	51	60	60	67	0.0281	Central Africa
Jordan	44.58	36	20	16	82	73	54	36	60	76	0.141	Middle East
Armenia	44.45	46	59	51	41	56	23	17	58	7	0.0374	Middle East
Brazil	44.28	33	59	69	64	61	-10	3	1	70	2.7	South America
Lesotho	43.11	52	66	63	28	2	17	10	45	60	0.0272	South Africa	23.5470138692, brazil completed
Malawi	43.06	37	79	64	9	12	26	7	80	64	0.238	South Africa
Eastern Europe	41.84
Sierra Leone	41.61	41	76	61	5	-3	12	28	90	64	0.104	West Africa
Brunei	40.91	16	1	12	85	95	93	82	29	52	0.0054	Southeast Asia
Liberia	40.51	47	71	56	16	8	18	1	60	41	0.0587	West Africa
South Asia	40.46
Oman	40.29	27	8	7	73	82	80	64	24	70	0.0571	Middle East
Turkiye	39.06	24	34	23	69	67	35	46	44	39	1.06	Middle East
South Africa	38.74
West Africa	38.64
Southeast Asia	38.57
Average Person	38.52
DR	38.24	31	55	66	47	25	1	7	45	37	0.133	Caribbean
Kuwait	37.5	22	25	16	67	74	48	53	16	57	0.0589	Middle East
North Africa	37.36
Bolivia	36.84	37	41	56	38	33	1	9	79	23	0.149	South America
India	36.2	31	78	36	31	26	19	1	33	11	17.3	Southern Asia
Kenya	35.95	38	48	44	21	9	7	18	79	74	0.599	East Africa
PNG	34.83	29	52	60	20	9	1	1	77	70	0.115	Southeast Asia
Kazakhstan	34.81	22	2	9	78	72	17	64	60	76	0.242	Stans
Zambia	34.59	32	62	46	24	7	6	9	38	70	0.231	South Africa
Rwanda	33.7	21	8	24	31	38	72	67	84	66	0.163	East Africa
Honduras	33.26	13	63	38	34	42	1	1	70	44	0.12	Central America
Bahrain	32.94	19	4	9	69	86	77	46	8	13	0.0189	Middle East
Guatemala	32.34	12	56	38	31	41	21	14	50	40	0.216	Central America
UAE	31.2	-3	1	-3	59	94	70	78	84	39	0.117	Middle East
Togo	30.42	27	14	39	28	35	12	25	82	64	0.0992	West Africa
Middle East	30.15
Madagascar	29.98	26	71	32	5	-3	7	-10	60	70	0.339	South Africa
Cote d'Ivoire	28.96	31	38	35	24	8	3	10	65	50	0.341	West Africa
Lebanon	28.44	27	38	42	33	53	-10	1	1	25	0.0684	Middle East
Cuba	27.41	28	2	13	32	73	10	30	70	31	0.141	Caribbean
Iraq	27.05	9	69	11	44	29	1	-10	33	33	0.519	Middle East
Niger	26.84	20	54	43	2	4	24	1	50	37	0.304	Sahel
Egypt	26.76	6	12	5	57	63	13	62	64	41	1.3	North Africa
Kyrgyzstan	26.41	34	8	41	47	38	7	3	24	4	0.084	Stans
Burkina Faso	25.68	20	62	23	7	6	9	1	58	33	0.271	Sahel
Azerbaijan	25.63	16	2	15	64	66	3	53	36	1	0.128	Middle East
Abkhazia	25.46	32	35	17	22	42	1	6	10	28	0.0031	Middle East
Laos	24.92	22	2	17	36	27	35	44	45	60	0.0925	Southeast Asia
Mauritania	24.64	-2	36	23	56	19	6	8	70	58	0.0538	North Africa
Pakistan	22.59	14	44	22	35	12	1	-10	64	7	2.84	Southern Asia
Guinea-Bissau	22.41	20	56	34	5	-5	-10	1	45	33	0.0207	West Africa
Nigeria	22.37	7	56	24	19	3	1	1	44	55	2.66	West Africa
Djibouti	22.33	24	14	17	27	16	1	20	60	57	0.0123	East Africa
Sudan	21.74	18	1	31	33	42	1	19	50	33	0.559	Sahel
Viet Nam	21.29	18	1	6	45	59	17	43	62	64	1.24	Southeast Asia
Tanzania	20.75	21	8	19	10	13	6	26	67	83	0.747	East Africa
Central Africa	20.72
Guinea	20.67	25	5	45	11	6	20	50	90	33	0.163	West Africa
Congo-Brazzaville	20.2	28	3	21	17	31	1	4	25	70	0.0713	Central Africa
Cambodia	20.04	18	2	26	29	19	1	17	45	70	0.196	Southeast Asia
Benin	19.83	27	30	30	12	8	3	1	13	18	0.158	West Africa
East Africa	19.8
Belarus	19.75	3	3	12	67	59	26	18	1	5	0.118	Eastern Europe
Russia	19.41	4	2	3	63	72	6	61	8	-20	1.83	Eastern Europe
Bangladesh	18.95	16	19	19	22	7	1	6	53	58	2.17	Southern Asia
Saudi Arabia	18.22	-20	1	-10	78	87	36	75	1	-10	0.441	Middle East
Stans	18.17
Libya	16.89	6	1	15	39	45	1	-10	60	33	0.0877	North Africa
Sahel	16.76
Palestine	16.49	6	13	18	40	26	-2	-8	47	26	0.0659	Middle East
Eswatini	16.19	26	2	23	11	7	-10	17	20	70	0.0148	South Africa
China	15.83	-28	5	-40	81	77	27	70	50	23	17.8	East Asia
South Ossetia	14.99	12	5	9	39	44	1	11	1	5	0.000674	Middle East
Transnistria	13.52	21	6	12	26	17	1	-10	6	21	0.00385	Eastern Europe
Nicaragua	13.28	8	3	13	45	29	1	1	1	14	0.0831	Central America
Angola	13.14	18	8	14	7	8	1	1	25	50	0.405	South Africa
Zimbabwe	12.4	19	13	14	19	9	-25	1	8	22	0.198	South Africa
Tajikistan	11.59	12	2	-7	26	21	-10	23	37	33	0.12	Stans
Ethiopia	11.37	1	8	18	16	5	15	-5	49	33	1.49	East Africa
Uganda	11.23	3	5	13	12	6	1	1	47	70	0.539	East Africa
Uzbekistan	10.9	-2	2	-10	25	41	-10	38	56	23	0.447	Stans
Iran	10.83	-20	3	-20	78	66	1	40	1	-10	1.07	Middle East
Comoros	10.78	7	21	12	19	3	1	1	2	20	0.0096	East Africa
Cameroon	10.62	5	2	14	20	2	2	-10	33	70	0.307	Central Africa
Mozambique	9.46	9	12	24	2	1	1	1	1	33	0.389	South Africa
Mali	8.41	7	1	26	9	0	1	1	10	33	0.263	Sahel
Venezuela	8.04	16	1	18	1	24	-35	1	1	34	0.361	South America
Haiti	7.86	7	11	14	6	11	1	1	5	5	0.148	Caribbean
Turkmenistan	7.15	-6	2	-20	7	47	-30	73	8	70	0.0796	Stans
Syria	6.66	-32	6	3	47	53	1	-10	51	3	0.23	Middle East
Myanmar	5.57	-25	1	1	47	46	1	-10	1	33	0.697	Southeast Asia
DRC	5.57	7	6	11	4	2	-7	1	10	15	1.16	Central Africa
EQ Guinea	5.28	10	3	4	4	-5	-6	1	1	24	0.019	Central Africa
Burundi	4.58	9	4	6	1	1	1	1	1	8	0.158	East Africa
Afghanistan	2.14	-5	1	-3	8	4	2	15	3	8	0.414	Southern Asia
Chad	1.12	4	1	2	1	-5	1	-10	2	8	0.212	Sahel
CAR	0.24	3	4	5	1	-4	-20	-10	1	10	0.071	Central Africa
Yemen	-1.18	-20	1	8	16	-10	1	-20	1	13	0.383	Middle East
Somalia	-2.09	-5	1	13	1	-5	-10	-30	12	-10	0.135	East Africa
Eritrea	-2.35	-10	1	-10	1	-10	-10	10	26	21	0.0454	East Africa
Sudan, South	-8.11	-45	1	13	1	-5	1	-10	15	29	0.167	East Africa
DPRK	-11.68	-40	1	-55	5	20	33	20	10	-40	0.323	East Asia

ATTACHMENT TWELVE – FROM the WASHINGTON EXAMINER

SCOTT BESSENT CANNOT SAVE THE BOND MARKET FROM CONGRESS’S $40 TRILLION NATIONAL DEBT

Tiana Lowe Doescher, Washington Examiner

One month after the bond market went ballistic, with the 10-year Treasury yield breaching 4.7% and the 30-year Treasury yield skyrocketing to 5.17%, the market is now well and truly imploding. The benchmark 10-year hasn't come down, and the 30-year has catapulted toward 5.3%, hitting its highest level since before the Great Recession.

Bessent is correctly panicking because roughly a third of our $32 trillion in publicly held debt is maturing in the next 12 months, meaning that roughly $10 trillion worth of debt that was financed an average of six years ago is maturing into a market where interest rates are 300 to 400 basis points higher than they were in 2020. But his tool kit is limited. In the case of Treasury buybacks, Bessent is taking out new debt to buy back old debt at higher interest rates, in the hope that the aggregate effect will depress interest rates enough to justify the trade through lower borrowing costs for that $10-ish trillion that's maturing this year.

HUGO GURDON: WE OWE $40 TRILLION — $120,000 EACH

The problem is that, as evidenced by the 12-hour reprieve in long-term rates, Bessent's bet did not work. It did not work because Treasury buybacks do not solve the problem of the $40 trillion national debt that bond vigilantes realize Congress does not care about. At all.

As I wrote last week, bond investors are not responding to the umpteenth month of President Donald Trump pretending to negotiate with a suicidal theocracy in the futile hope of reopening the Strait of Hormuz through a peaceful diplomatic deal. Rather, investors are realizing that Congress has come to a bipartisan consensus that it will do nothing to curb the entitlement explosion that is fueling a deficit that now amounts to 3.3% of our entire annual economic output at the exact same time that the private sector's AI and data center build-out is demanding trillions of dollars. Next to the double-digit returns guaranteed by hyperscalers, the U.S. government's ability to pay back its creditors is looking like a much less certain bet.

Leftists will lie that the fiscal crisis is caused by insufficient taxation, even though the tax cuts in the One Big Beautiful Bill Act resulted in a 7% increase in individual income tax collections this year. Cowardly Republicans will claim we can just grow our way out of our debt or focus on discretionary "waste, fraud, and abuse" without touching entitlements. This is arguably the more pernicious falsehood because serious people pretend to believe it.

The reality is that, whereas overall federal spending has risen 4% in the first 10 months of the fiscal year, Social Security outlays are up 5%, and Medicare and Medicaid are up 8% each. Almost every single dollar of individual income taxes sent to Uncle Sam so far this year ($2.365 trillion) is going solely to Social Security and Medicare ($2.325 trillion). Two out of every three dollars collected by the federal government is going to Social Security, Medicare, and Medicaid.

We have spent $200 billion more on financing the national debt this year than on defending this country. That's the same amount by which the CBO increased its projection of our total budget deficit for fiscal year 2026, to $2.1 trillion.

BOND MARKET MELTDOWN SHOWS MAGA NEEDS DEFICIT REDUCTION RESPONSE

We will have entered the technical definition of a fiscal crisis when the interest rate on government debt exceeds the rate of our economic growth. Even a $40 trillion national debt is theoretically sustainable indefinitely when the 10-year yield is 2% and GDP grows by 2.5%. But right now, the average interest rate on the total marketable debt outstanding is 3.443%. GDP grew by only 2.1% on an annualized basis in the first quarter of this year and a mere 1.5% in the quarter after that.

Bessent has proven masterful at moving markets on the margin, but ultimately, the fears that a $40 trillion national debt inspires in investors cannot be assuaged by one man. Unless Congress decides to do the hard thing and start touching that third rail of politics, interest rates from the 30-year Treasury to the 30-year fixed mortgage will continue to meander upward.

ATTACHMENT THIRTEEN – FROM FORTUNE

SCOTT BESSENT ON THE NATIONAL DEBT: ‘THERE’S NOTHING MAGIC ABOUT THE $40 TRILLION NUMBER’

By Nick Lichtenberg Business Editor August 20, 2026, 1:51 PM ET

The U.S. national debt crossed $40 trillion for the first time this week, but Treasury Secretary Scott Bessent wants Americans—and markets—to shrug it off.

The remark, delivered with the same even cadence he’s used to talk down bond-market jitters all year, was Bessent’s clearest attempt yet to reframe a debt milestone that has alarmed economists and fueled a selloff in long-dated Treasurys. The gross national debt crossed the $40 trillion mark, according to Treasury Department data, just five months after hitting $39 trillion in March.

Bessent’s comments came a day after the Treasury said it would at least double the size of its buyback operations for longer-dated securities—from a maximum of $2 billion per operation to “at least” $4 billion—in a bid to shore up liquidity in a bond market he described as thinly traded and, in his view, mispriced. The change takes effect Sept. 9 and applies through Nov. 4, covering the 10-to-20-year and 20-to-30-year sectors that have faced what CNBC has called a “buyers’ strike” since late June.

“We believe that there are many underlying factors in turn that the market is not looking at, and we are going to make a market… in these,” Bessent said. “I would note that it could be more than the $4 billion per issue.”

THE FUNDAMENTALS ARGUMENT

Bessent’s core pitch is the deficit is smaller than it looks, and the money the government is “losing” isn’t being lost at all. He said the U.S. ran a fiscal consolidation in calendar year 2025, with the deficit landing around 5.7% of GDP. Part of what has inflated the headline deficit, he argued, are one-time tariff refunds that won’t recur: 2026 tariff income, he said, should roughly match 2025 levels as U.S. Trade Representative Jamieson Greer reimplements duties through the Section 301 process.

The other major drag on revenue, he said, is the cost of letting companies immediately expense new factories, equipment, and farm structures. Bessent said he doesn’t count that as spending.

He described the strategy in physical terms: “Think of it as pulling back the slingshot here. We have a lot of potential energy that will turn into kinetic energy during this year, next year, as these factories come online.”

Asked directly whether the administration believes it has already seen the worst of the deficit, Bessent didn’t hedge.

“I think the very, very good chance we have,” he said, pointing to a coming joint effort with OMB Director Russell Vought and a separate crackdown led by the vice president’s Fraud Task Force that he said could “save several hundred billion dollars.”

He also teased a broader fiscal-consolidation announcement from the White House “probably at the end of this week, beginning of next week,” covering both spending cuts and revenue measures.

THE DEFICIT QUESTION

Fortune reported earlier this month Bessent has leaned unusually hard on short-term Treasury bills to finance the roughly $2 trillion annual deficit, taking advantage of a 3.8% three-month bill yield versus a 30-year rate that has traded above 5%—a multi-decade high. That approach holds down reported borrowing costs today, but leaves the government more exposed if inflation or rates rise, according to minutes from the Treasury Borrowing Advisory Committee (TBAC), the panel of bond dealers and investors that advise Treasury on its own funding.

Those same TBAC minutes, released Aug. 5, warned that at current auction sizes, the government faces a $1.45 trillion funding shortfall in fiscal years 2027-28. Rising interest costs already drove the biggest jump in Treasury outlays this year—up $120 billion—and the government now spends more than $1 trillion annually just servicing debt, more than the U.S. spends on national defense.

“It always comes back to fundamentals,” Hilsenrath said. “Trump and a new Congress came into power and chose not to do anything about the deficit.”

Notably, the strategy predates Bessent. It was his predecessor, Janet Yellen, who first leaned on short-term bills to fund deficits—a tactic Bessent himself criticized in 2024, when he amplified an analysis by economists Stephen Miran and Nouriel Roubini accusing Yellen’s Treasury of “activist Treasury issuance” designed to flatter the economy ahead of the election.

SKEPTICISM FROM THE BOND MARKET

Eisen pressed Bessent on whether the buyback signal was more theater than substance, noting Wednesday’s Treasury rally—yields fell as much as 9 basis points on the 30-year bond after the buyback news—had already partly reversed by Thursday morning. Bessent didn’t back down from the possibility of going further.

“We have a big toolkit, so we will see,” he said, though he insisted the moves aren’t a response to any particular yield level. “It’s not if the market cooperates. It’s: we will see what the conditions are, and we will analyze them then.”

He also dismissed the idea the buyback push constrains Warsh, who has signaled openness to shrinking the Fed’s balance sheet or raising rates if inflation stays elevated.

“I think that the Treasury and the Fed would work together if there was any change in the balance sheet,” Bessent said, adding the buyback decision “has nothing to do” with the rate outlook.

INFLATION, JOBS, AND THE DOLLAR

Bessent argued headline inflation—pushed higher recently by Brent crude near $94 a barrel amid the ongoing conflict with Iran—is masking a friendlier underlying picture. He pointed to slower wage growth in hospitality, gains for the bottom 25% of earners, and what he called the “biggest decrease in pharma prices” on record.

“The core inflation is down,” he said. “We aren’t seeing anything that says that the second-order effects are spilling over into core inflation.”

He also waved off recent dollar weakness.

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.

From jazz above

Under Joe Biden’s administration from 2021 to 2025, the government continued to borrow and spend heavily in response to the pandemic; debt rose by $8.4 trillion.

ATTACHMENT FOURTEEN – FROM TIME

HOW MUCH THE NATIONAL DEBT GREW UNDER TRUMP AND BIDEN

By Chantelle Lee Aug 21, 2026 10:27 AM ET

The U.S.’s national debt surpassed $40 trillion for the first time ever this week—more than double what it was a decade ago.

The record-breaking figure comes after the government reported in March that the total debt reached $39 trillion, meaning that the debt grew by $1 trillion in less than half a year. Just a few months before that, in October, that figure was $38 trillion.

And the country has reached the $40 trillion milestone earlier than experts had previously predicted; in 2023, the Congressional Budget Office estimated that the total debt wouldn’t hit that figure until 2028.

The debt has been increasing for decades, but much of the current total has been accumulated over the past ten years, during the administrations of President Donald Trump and former President Joe Biden. Here’s how much the debt grew under each of their terms in the White House.

Trump’s first term

When Trump took office for his first term in January 2017, the total debt was about $19.95 trillion. When his presidency ended four years later, the debt stood at roughly $27.75 trillion, meaning that the debt rose by about $7.8 trillion under his Administration.

Biden’s term

The debt grew by about $8.4 trillion while Biden was in the White House, increasing from about $27.75 trillion when he was sworn into office in January 2021 to roughly $36 trillion by the time he finished his term in January 2025.

Trump’s second term so far

Since Trump returned to the White House for a second term in January last year, the debt has gone up by about $3.8 trillion. That means that the national debt has climbed by a total of $11.6 trillion across the two Trump Administrations—so far—a figure that comprises more than a quarter of the total amount.

Why has the debt soared?

Experts credit a significant portion of the growth in the national debt to the federal government’s response to the COVID-19 pandemic. According to Reuters, about one-third of the growth seen since 2017 took place during two years or so of the pandemic, when the first Trump Administration and then the Biden Administration intensified borrowing to fund the country’s pandemic response and recovery.

Both Trump’s and Biden’s fiscal policies have also contributed to—and exacerbated—the longer-standing issue of government spending exceeding tax and other revenues, which has led to the ballooning national debt.

For instance, according to the Brookings Institute, the tax cuts that Trump signed into law during his first year in office in 2017 were expected to contribute almost $2 trillion to the deficit by 2028. And in March, the nonpartisan Committee for a Responsible Federal Budget predicted that Trump’s “One Big Beautiful Bill,” a signature piece of his second-term agenda that also included steep tax cuts, will add $4.7 trillion to the national debt through 2035.

ATTACHMENT FIFTEEN – FROM PEW

KEY FACTS ABOUT THE U.S. NATIONAL DEBT

By Drew DeSilver August 12, 2025

Even before Congress passed President Donald Trump’s major tax and domestic policy legislation, the federal government was on track to spend $1.9 trillion more this fiscal year than it collected in revenue, according to the nonpartisan Congressional Budget Office (CBO). The CBO now projects that the recently signed “megabill,” as it’s been dubbed, will add nearly $3.4 trillion more in deficit spending over the next decade.

When the government runs a deficit – that is, when it spends more in a year than it receives in revenue – it makes up the difference by borrowing. That means annual budget deficits add to the national debt, which was almost $37 trillion as of Aug. 8. While the “megabill” raised the federal debt limit by $5 trillion to $41.1 trillion, that’s not likely to be enough: The CBO estimates that the nation’s debt will exceed $52 trillion by the end of fiscal 2035.

Related: What to know about the bond market

HOW WE DID THIS

Pew Research Center conducted this analysis to provide an update on the national debt following the passage of a major Republican tax and spending law.

Most of this analysis deals with “total public debt outstanding,” which stood at just under $37.0 trillion at the time of publication. Of that amount, about $115.0 billion is not subject to the statutory debt limit. Most of that represents the accounting treatment of certain Treasury securities sold at a discount to their face value ($110.4 billion) and debt issued by the Federal Financing Bank ($4.1 billion).

The Treasury Department makes available extensive information on U.S. public debt, from detailed analyses of its composition and ownership to the exact daily balance, calculated down to the penny. For this analysis, we used data from several of these publications and datasets, but our primary source was the department’s Monthly Statement of the Public Debt.

Data on gross domestic product came from the federal Bureau of Economic Analysis. Figures on interest payments on the debt and overall federal spending came from the Office of Management and Budget. FRED, a database of economic and financial data maintained by the Federal Reserve Bank of St. Louis, was our source for historical data on the Fed’s interest-rate decisions.

WHY DOES THE U.S. HAVE A DEBT LIMIT, ANYWAY?

Aside from Denmark, the United States is the only country with a law setting a specific monetary limit on its national debt. (Australia enacted such a limit during the 2007-09 global financial crisis, only to repeal it a few years later. In 2023, Kenya changed its numerical limit to one expressed as a share of gross domestic product, or GDP.)

Other countries also have debt caps linked to GDP, meaning that as their economies grow, the monetary value of the debt limit rises as well. European Union member countries, for example, are supposed to keep their public debts to no more than 60% of GDP, though in practice many countries are well in excess of that limit and enforcement has been inconsistent.

The U.S. has had public debt for longer than it’s been a country, but it managed to get along without a debt limit for more than a century and a half. The standard practice was for Congress to authorize specific bond issues for specific purposes – $11.25 million to fund the Louisiana Purchase, $500 million to finance the Civil War, $130 million to build the Panama Canal, and so forth. Along with the size of the bond issue, Congress might also specify the bonds’ denominations, interest rates, maturity dates, early redemption rules, and other terms and conditions.

But when the U.S. entered World War I in 1917, it was confronted with the need to borrow unprecedented sums of money. By the time the Treaty of Versailles formally ended the war in 1919, the U.S. had sold $21.5 billion in bonds, along with $3.45 billion in short-term certificates, with varying lengths, interest rates, redemption rules and tax treatments. Administering and paying down that debt proved to be too complex for Congress to micromanage.

The laws authorizing the WWI bonds – primarily what became known as the Second Liberty Bond Act – originally spelled out in some detail the terms and conditions of each bond issue. But throughout the 1920s and 1930s, as the various bond issues approached maturity and had to be either paid off or refinanced, Congress gave the Treasury Secretary more and more discretion to issue new and different types of debt securities under terms the secretary thought best.

Gradually, the specifications in the Second Liberty Bond Act (which in amended form came to govern most government borrowing) were replaced by broad caps. In 1939, the few remaining limits were replaced by an overall $45 billion cap that covered nearly all public debt – the birth of the statutory debt limit as we know it today.

With all that in mind, here are facts and figures about the national debt. For more about the statutory debt limit, read “Why does the U.S. have a debt limit, anyway?” above.

The nation’s debt is considerably bigger than its entire economy. Gross domestic product (GDP), the sum of all goods and services produced by the U.S. economy, was $30.3 trillion at the end of the second quarter of 2025 (June 30), according to the latest estimate by the Bureau of Economic Analysis (BEA). That means the debt, which stood at $36.2 trillion at the end of the second quarter, was 119.4% of GDP.

The debt-to-GDP ratio is a useful metric for analyzing the debt over long time spans because it puts the debt into the context of the overall economy. Looking at it this way, debt as a share of GDP has gone through three main growth phases in recent decades. These phases have corresponded with periods when the federal government ran large deficits: the Reagan-Bush years of the 1980s and early 1990s; the 2008 financial crisis and subsequent Great Recession; and the COVID-19 pandemic, when federal debt spiked to an all-time high of 132.8% of GDP in the second quarter of 2020, according to our analysis.

Private investors are the biggest holders of U.S. debt. Investors own about two-thirds of the national debt, or $24.4 trillion as of March 2025, the latest figures available. The rest is held in various federal trust funds and retirement programs ($7.3 trillion, or 20.1%) or by the Federal Reserve System ($4.6 trillion, or 12.6%).

Social Security’s two trust funds (one for retirement benefits, one for disability insurance) together held nearly $2.7 trillion in special Treasury securities as of July 2025. Various military retirement funds held more than $2.2 trillion. And Medicare’s two trust funds held a combined $425.3 billion.

Because of data lags, we have to go back to December 2024 for a closer look at the private investors who hold the national debt. At that time, about $8.5 trillion (23.5% of the total) was held overseas, either by individuals or foreign governments. Mutual funds held nearly $4.5 trillion, or 12.4%. Banks and similar institutions held nearly $1.9 trillion, or 5.1%, while states and localities owned almost $1.7 trillion, or 4.6%. Public and private pension funds together held $955.7 billion in U.S. debt, or 2.6%. The rest was held by a mix of individuals, businesses, insurance companies, broker-dealers and others.

Japan is the biggest foreign holder of U.S. debt. As of May 2025, Japan held more than $1.1 trillion, or 3.1%, of the country’s total debt. Following Japan were the United Kingdom ($809.4 billion, or 2.2%) and China ($756.3 billion, or 2.1%).

Interest on the national debt exceeds annual spending on Medicare, as well as national defense. In fiscal 2024, the government’s net interest expense was $879.9 billion, or 13% of all that year’s expenditures, according to data from the Office of Management and Budget. That was the highest share in a quarter-century. In dollars, it was slightly more than the government spent on Medicare ($874.1 billion) or national defense ($873.5 billion) in fiscal 2024. Interest on the debt is now the government’s third-biggest major spending area, behind only Social Security and health care services and research.

Net interest on the debt as a share of total federal outlays topped 15% in the mid-1990s. But for more than two decades thereafter, generally falling interest rates helped to constrain the government’s annual interest costs, even as the total debt load continued to grow.

That changed dramatically in the spring of 2022, when the Federal Reserve began raising its policy rate – ultimately to its highest level in 15 years – to bring down soaring inflation. One side effect of that policy shift is that the U.S. has started paying more to borrow.

The average interest rate on all federal debt, which had been as low as 1.556% in January 2022, has more than doubled to 3.352% as of July 2025. While still well below the levels of the 1980s and 1990s, that was the highest average rate since the 2007-09 Great Recession.

Note: This is an update of an analysis originally published on Oct. 9, 2013.

ATTACHMENT FIFTEEN.A – FROM 1440

THE SECURITIES and EXCHANGE COMMISSION

Good morning. It's Thursday, Aug. 27, and welcome to this week's Business & Finance newsletter. First time reading? Sign up here or forward to share with friends.

This week, we're exploring the market-regulating federal agency known as the SEC. We're also looking into the rising US national debt, how much money a giant hairball rolling through NYC earned a hair care brand, and more.

THE SECURITIES AND EXCHANGE COMMISSION - HISTORY

Created in 1934 following the 1929 stock market crash, the Securities and Exchange Commission is a federal agency responsible for regulating the sale and purchase of securities (tradable financial assets such as stocks and bonds). It's also tasked with creating and maintaining reporting requirements for public companies, overseeing market participants (brokers, advisers, exchanges), and more.

> Watch the SEC "Era's Tour" to learn about its history. (More)
> In the decades before the SEC was created, 180 people were found to be managing more than $22B, a large slice of the entire nation's wealth. (More)

The commission itself is composed of five commissioners appointed by the president and confirmed by the Senate (two spots are vacant today). No more than three commissioners can be from the same political party, and one of them serves as the SEC chair. Their stated mission is to protect investors, maintain fair, orderly, and efficient markets, and help businesses raise money.

> President John F. Kennedy's father was the first chairman of the SEC. (More)

> Learn about the different financial and banking regulatory bodies in the US. (More)

The agency's role and scope have expanded in the years since its creation, with more aggressive regulations coming out of financial crises like the Great Recession of 2008. The SEC only has civil enforcement power (think: fines, penalties, industry bans)—meaning when a case warrants criminal charges, it refers the matter to the Department of Justice. The extent of the SEC's oversight is a highly politicized issue: Conservative politicians tend to advocate for less oversight, while more liberal politicians push for more.

> The SEC was criticized for not having caught Bernie Madoff's nearly $65B Ponzi scheme earlier. (More)

> How Dodd-Frank expanded the SEC's power. (More)

Discover more:

> The man who likely inspired Gordon Gekko in the movie "Wall Street" was shockingly cooperative with the SEC when he was arrested. (More)

> What is insider trading? (More)

> Explore the SEC's public database with information and filings from public companies. (More)

Humankind: About 30 states in the US have recently agreed to mandate personal finance courses for teens in school.

1440 brings you the knowledge and context behind the week's stories:

The US national debt hit $40T last week for the first time—and new data shows that it rose at about $90K per second over the past year. (More)

> How the rising national debt affects everyday Americans.

> Andrew Jackson was the first and only president to eliminate the national debt.

A new report from Bank of America revealed after-tax wage growth for lower- and middle-income earners, signifying a departure from the "K-shaped economy." (More)

> The K-shaped economy, explained.

> How to tell if an economy is experiencing a recession.

CEOs are shifting their messaging around AI and layoffs, moving away from highlighting AI's ability to reduce headcount in favor of claiming that recent headcount reductions are not related to AI gains. (More)

> Generative AI is expected to impact both low- and high-wage roles—here's how.

> How to financially prepare if you think AI is coming for your job.

ATTACHMENT SIXTEEN – FROM MS NOW

WE ALWAYS KNEW FEDERAL SPENDING WOULD INCREASE, BUT WE USED TO HAVE A TAX SYSTEM THAT WAS SET TO KEEP PACE WITH IT.

By Bobby Kogan Aug. 25, 2026, 6:00 AM EDT

See charts and graphs here

The U.S. federal debt surpassed $40 trillion last week, but there are reasons not to panic. Raw numbers, even very big ones, don’t explain how large debt and related interest costs are relative to the size of the economy, which is the metric economists and budgeteers rely on. And even when contextualized with the size of the economy, the level itself is less important than the trajectory.

What’s matters most is that U.S. federal debt is not only historically high outside of World War II, but it’s also on track to rise indefinitely. This is a bad situation that Congress must address. 10:22

Critics often argue that because federal revenues have remained “roughly flat” as a percentage of gross domestic product while spending has risen, spending is the culprit. Data proves, however, that tax cuts enacted this century are driving this fiscal imbalance.

Let’s consider two critical points.

First, without these tax cuts, debt as a percentage of GDP would be declining. Put simply, it is a mathematical truth that had the Bush and Trump tax cuts never been enacted, the U.S. debt ratio would be declining indefinitely.

U.S. DEBT IS ON TRACK TO REACH HISTORIC LEVELS

Debt held by the public as a percentage of the gross domestic product, 1792–2055

A line graph showing that the debt as a percentage of the gross domestic product are historically high outside of recessions and wars, but it would instead be declining if not for the Bush and Trump tax cuts.

Historical

Projected

Without

Bush and Trump tax cuts

180018501900195020002050020406080100120140160180%47.85%99.38%187.55%

Hover or click to see values.

Notes:

Source: Authors' calculations using data from the Congressional Budget Office, the Joint Committee on Taxation, the U.S. Office of Management and Budget, the U.S. Census Bureau, the Federal Reserve, the Yale Budget Lab, the Center on Budget and Policy Priorities, and the Committee for a Responsible Federal Budget. A full list of sources is available here.Chart: Center for American Progress

Second, we have to look at how the budget fell out of long-term stability and what changed. Throughout U.S. history, long-term debt-to-GDP trajectories have fluctuated between stability and fiscal gaps (read: instability). Sometimes it was tax cuts that threw us off balance; sometimes it was increased spending. The question is how the country got out of balance this time.

Under the tax-and-spending structure crafted by the Clinton administration, surpluses would eventually end but federal debt was projected to shrink continuously as a percentage of the economy, even as the retirement of the baby boomer generation and rising healthcare costs loomed. Put another way, we always knew federal spending would increase, but we used to have a tax system that was set to keep pace with it. Then taxes were cut. And now there’s not enough revenue.

To blame the whole fiscal problem on revenue, all of the worsening outlook relative to the old Clinton dynamic would have to come from tax cuts. That is, while my first point is true — tax cuts are larger than the fiscal gap — if it were also true that our spending outlook had worsened, taxes couldn’t be the only reason; in that case, spending would share at least some of the blame.

More articles

As the U.S. national debt reaches $40 trillion, Trump has some explaining to do

National debt crosses a historic threshold, exposing absurdity of Trump campaign promises

But the opposite is true. Relative to the last time the U.S. had a stable long-term fiscal outlook, long-term spending projections are actually lower than anticpated. While federal spending is higher now than in years past, it is rising more slowly than was forecast back when the country still had a stable long-term outlook. We always knew the baby boomers would retire, pushing up spending, but spending has actually been pushed up less than expected.

That means that spending changes have improved the long-term debt outlook relative to expectations, making tax cuts responsible for all of the worsening fiscal gap relative to the last time the United States had long-term fiscal stability. It doesn’t make sense analytically to blame spending increases relative to the old outlook that were previously fully budgeted for when they actually came in below expectations.

20, 2026 / 10:22

The root cause is clear. And, importantly, our current path is unsustainable — it hurts the economy, driving up interest rates and dragging down real wage growth.

Congress must work to responsibly stabilize the debt-to-GDP ratio. That means nominal debt figures like that $40 trillion headline number will continue to rise, but the actual burden would stop worsening. (Note that headline figures such as $40 trillion are not precise, thanks to intragovernmental accounting quirks that overstate some debts while excluding some assets.)

In acting to fix the problem, it is essential that Congress not do more harm than good. Irresponsible deficit reduction would be significantly worse than inaction. Congress would do more harm than good, for instance, by slashing crucial aid that Americans rely on, such as food benefits, housing assistance or healthcare coverage for struggling Americans. Instead, lawmakers should look first and foremost to undo some of the many tax cuts significantly tilted toward the wealthy that are responsible for the creating fiscal gap.

ATTACHMENT SEVENTEEN – FROM THE WASHINGTON POST

TO GET THE NATIONAL DEBT UNDER CONTROL, START WITH THE RETIREMENT STATE

August 24, 2026 at 7:30 a.m. EDT Yesterday at 7:30 a.m. EDT

The insolvency dates for the Social Security and Medicare trust funds used to be far-off events. Politicians did little to forestall them when they felt like abstract possibilities. Now, they’re right around the corner.

The main Social Security trust fund will go insolvent in 2032, during the next president’s term in office, according to this year’s trustees report. The Medicare hospital fund will follow in 2033. If Congress does nothing, insolvency would mean cuts of about one-tenth across the board for Medicare and about one-quarter for Social Security.

The trust fund concept is misleading. Both programs are, and have always been, pay-as-you-go, where taxes collected from current workers fund benefits for current retirees. Social Security and Medicare both add to annual deficits right now, even though the trust funds still have positive balances on paper.

For many years, Social Security took in more money in taxes than it paid out in benefits. But the government didn’t save that extra money. Money stored in the trust fund is held in Treasury bonds, meaning the government spent it. Since 2010, Social Security benefits have exceeded payroll tax collections.

Medicare benefits have never been premised on workers getting back what they paid into the program. A husband and wife with an income around $100,000 who turned 65 years old in 2025 are expected to receive 4.4 times as much in Medicare benefits (in present value and net of premiums) as they paid in Medicare payroll taxes during their working years. And the gap is projected to grow: That same couple retiring in 2045 is projected to receive 5.3 times as much in benefits as it paid in taxes.

Last year Medicare premiums covered 14 percent of the program’s expenditures. Payroll taxes covered 33 percent. The remaining 53 percent was mostly debt.

The insolvency dates are meaningful only because they legally force Congress to do something. The Congressional Budget Office assumes in its projections that Congress will continue to fund the programs with general revenue, rather than raising taxes or cutting benefits to match what the trust funds can handle. But using general revenue would require an affirmative choice by lawmakers. They can — and should — choose differently.

Social Security is out of step with modern times. Most countries with fiscally sensible retirement programs follow the same basic structure: A tax-funded transfer payment as a floor, with means-tested benefits and compulsory private savings above that. Such a structure ensures that benefits are targeted where they are most needed without overburdening the government’s budget.

Federal law goes to great lengths to encourage private retirement savings through tax advantages to individuals and employers. Americans have responded to those incentives. Retirement accounts are the largest source of household wealth, greater than home equity.

As a result, a big chunk of Social Security benefits goes to people who don’t need them. Over one-third of benefits are paid to seniors with incomes over $100,000. This share is likely to increase over time. Many younger people who are planning for retirement save under the assumption that they can’t rely on Social Security.

Medicare is the bigger challenge. Its share of the economy will only increase. Taxes can’t go up forever without wrecking economic growth, which would depress revenue along with household incomes. Constraining Medicare’s spending growth is essential.

One way to accomplish that would be to limit the addition of new services to the program. Spending on existing services is fairly well controlled. Most of the projected spending growth in excess of inflation would come from the addition of new billing codes — that is, coverage of new treatments. Limiting those additions might be more politically palatable than other cost controls because it wouldn’t require any reduction in services now covered.

Medicare should also have stronger means-testing. Well-off seniors should be paying full freight for their premiums, and average seniors should be paying more than they currently pay. There’s no way to continue to justify premiums covering less than one-fifth of the costs for health care for the nation’s wealthiest generation.

Politicians like to promise to get debt under control by raising taxes or cutting waste. But there’s no realistic path to solvency for the U.S. government without changes to the retirement state.

The 20th-century model the country has inherited doesn’t align with today’s demographics. American seniors can no longer count on four or five workers each to pay for their benefits. Fortunately, millions of seniors are already doing very well on average and have significant wealth to draw on.

ATTACHMENT EIGHTEEN – FROM BING/FLAGPOLE

MIKE COLLINS’ “BACK TO WORK” MESSAGE AND BACKLASH

U.S. Rep. Mike Collins of Georgia has repeatedly advocated for people to “get off Social Security and Medicaid” and return to the workforce, framing it as part of a supply‑side economic agenda that he says encourages work over reliance on government benefits. In a June 2025 radio interview, he told a right‑wing talk show host that cutting taxes and making work more advantageous could help people “get off of Medicaid, get off of Social Security, get back in the workforce”.

The comments drew sharp criticism from Georgia Democrats, who accused him of promoting policies that would cut $800 billion from Medicaid and, in their view, risk throwing 750,000 Georgians off the health‑care rolls. They argued that such cuts would harm working families and retirees, and that Collins’ stance is aligned with billionaire interests rather than the needs of ordinary Georgians ..

In August 2026, Protect Our Care Georgia hosted a roundtable of seniors who rejected Collins’ “back to work” message. Retirees said they were not going to return to jobs like Starbucks to offset rising prescription costs and health‑care expenses, noting that they had worked and paid into programs like Social Security and Medicaid (Atlanta Daily World). They criticized him for ignoring the impact of recent Medicare cuts, Medicaid funding reductions, and ACA tax credit eliminations, which they say have already cost millions of Georgians coverage and driven up costs (Atlanta Daily World).

Collins’ position is part of a broader legislative approach that includes large Medicaid cuts and support for tax breaks for high earners, which opponents say undermines health‑care access and economic stability for seniors. His stance has become a central talking point in Georgia’s 2026 U.S. Senate race, where he is challenging incumbent Jon Ossoff .

ATTACHMENT NINETEEN – FROM FORTUNE

THE $40 TRILLION NATIONAL DEBT AND THE BOND MARKET’S REVOLT: TOP WALL STREET STRATEGISTS EXPLAIN HOW WE GOT INTO THIS MESS

By Nick Lichtenberg August 26, 2026, 10:59 AM ET

Total U.S. debt crossed $40 trillion for the first time this month. In the week since, two of Wall Street’s most closely read economists independently arrived at the same diagnosis: nobody in Washington is going to fix this, so the bond market will do it instead—whether the Treasury Department likes it or not. They also got a major helping hand from an AI-assisted column in the Wall Street Journal by hedge fund legend Stanley Druckenmiller.

On Tuesday, David Kelly, chief global strategist at J.P. Morgan Asset Management, used the milestone to walk clients through exactly how the country got here. A day later, Apollo chief economist Torsten Slok argued in his Daily Spark that the fiscal trajectory, a Federal Reserve weighing a rate hike, and a surge of AI hyperscaler bond issuance are all pointing toward the same outcome: rates that stay higher for longer. Slok closed his note by endorsing a line from billionaire investor Druckenmiller, who had made the same argument in the Journal a day earlier, with considerably more edge: the long-term Treasury yield is “the only fiscal disciplinarian the U.S. has left.”

That op-ed, of course, was an unexpected, direct attack on the Treasury Department’s decision, announced Aug. 19, to double long-dated bond buybacks from $2 billion to at least $4 billion per operation—right after the 30-year Treasury yield hit a 19-year high. “The market’s verdict was swift and correct,” Druckenmiller wrote in AI-inflected overtones. “This wasn’t liquidity management, it was price management.” His prescription, delivered in the same essay: “If the 30-year must trade at 5.5% to clear, that isn’t a crisis. It is an invoice.”

The essay carries extra weight because Druckenmiller was Treasury Secretary Scott Bessent’s mentor at Soros Fund Management three decades ago—the two, alongside George Soros, built the trade that broke the Bank of England’s defense of the pound in 1992. Now Druckenmiller is using the same playbook—reading the gap between what a government claims it can sustain and what markets will actually allow—against his own protégé. Jon Hilsenrath, the former longtime Fed and Treasury reporter for the Journal, told Fortune that Druckenmiller’s decision to publish in the Journal, rather than deliver the message privately, was telling, agreeing that it was a bit of a “Shakespearean drama.”

THE MATH BEHIND THE MILESTONE

Kelly’s note draws a distinction that matters more than the $40 trillion headline number itself. That figure is total federal public debt outstanding, which includes roughly $7.8 trillion the government owes its own trust funds. The measure economists actually watch—debt held by the public—will end this fiscal year at $32.3 trillion, or 100.5% of GDP, J.P. Morgan projects. That ratio was just 34.7% as recently as fiscal 2000, when the federal government posted a $236 billion surplus.

Kelly noted that former Fed Chairman Alan Greenspan fretted in 2001 about what would happen if the U.S. actually paid off all of its federal debt. “He needn’t have worried.” Kelly traced the reversal to four buckets of fiscal decisions compounding since then, measured against the last time the budget was healthy (fiscal 1996–2000):

· Tax cuts in 2001, 2017, and 2025 pulled federal revenue down from an average of 19.1% of GDP to 16.7%, a cumulative $11.1 trillion hit.

· Wars in Iraq, Afghanistan, and Iran pushed defense spending from 3.5% to 4.4% of GDP, adding $3.9 trillion.

· Social Security, Medicare, and Medicaid spending climbed from 7.8% to 10.1% of GDP as the population aged, adding $12.5 trillion.

· Everything else, boosted by crisis-response spending during the 2008 financial crash and the pandemic, added another $5.2 trillion.

In short, in the last 25 years, America voted itself a series of tax cuts, waged expensive wars, got older, and then spent its way out of a couple of crises. Add it up—$32.7 trillion, before interest costs—and it “more than accounts for” the debt surge of the 21st century, Kelly wrote. He was explicit that the real drivers aren’t the culture-war talking points dominating political debate: entitlements, defense, and tax policy, full stop.

WHY THE OLD RULES STOPPED WORKING

Slok’s note picked up where Kelly’s history lesson leaves off and pointed forward. Since 2006, gross federal debt has grown by $32 trillion while nominal GDP grew by just $19 trillion—debt nearly quintupling while the economy grew less than 2.5x over the same period. The forecasts offer no relief: the Congressional Budget Office projects debt held by the public climbing from 100% toward 175% of GDP under current policy, while the Office of Management and Budget sees deficits near 5% of GDP in coming years, on top of a current run rate closer to 6%. Deficits that size are normal in a recession, Slok notes. These are forecasts for a fully employed economy.

Both economists agree that deficits of this magnitude no longer automatically trigger the inflation spiral that economic orthodoxy once predicted—which is precisely why Washington has felt no urgency to act. Kelly pointed to the bond market’s own pricing as evidence. Since January, 10-year Treasury yields have risen 0.51 percentage points, while 10-year TIPS yields—which strip out inflation expectations—rose almost as much, 0.44 points. That leaves only 0.07 points of the move attributable to rising inflation fears. The rest, Kelly argues, reflects a “growing fear about the volume of government debt to be issued,” not inflation itself.

Slok’s explanation converges on the same fear from a different data set: AI hyperscalers’ surging bond issuance now competes directly with the Treasury for buyers, adding pressure as the Fed debates a hike rather than a cut.

A BIGGER FIGHT IS BREWING

The Druckenmiller op-ed complicates a simpler story that both Kelly and Slok leave out. Hilsenrath noted that Druckenmiller’s argument isn’t that Treasury should never buy back debt—the buyback program, introduced in 2024 as a liquidity tool, can legitimately improve market functioning by purchasing older, thinly traded bonds. Druckenmiller’s real complaint is timing: Treasury enlarged the program right after the 30-year yield spiked to a two-decade high, outside its normal quarterly rhythm, which markets read as flinching at an uncomfortable price rather than managing routine liquidity[web:10].

There’s also a structural irony neither Kelly nor Slok addressed directly. The Treasury market Bessent now manages isn’t the one Druckenmiller’s generation tested in 1992. Foreign central banks used to absorb much of new Treasury issuance; that mechanism has weakened sharply since the financial crisis. In their place, hedge funds—often operating through offshore centers—have become the marginal buyer, holding $2.4 trillion in long Treasury exposure as of last September, more than mutual funds or U.S. banks, per a New York Fed analysis cited by Columbia financial historian Adam Tooze. The industry Druckenmiller helped build by betting against governments now largely finances the government whose credibility he’s publicly questioning.

Hilsenrath’s read on the stakes: a 5% Treasury yield “is not a clear and present danger to the economy… but it is a problem, which is why you have to pay attention to these market signals now.” Whether Washington listens is exactly what Kelly and Slok are both betting against.

ATTACHMENT TWENTY – FROM US NEWS

$40 TRILLION AND COUNTING: THE NATIONAL DEBT GROWS

A digital counter shows the national debt has exceeded $40 trillion.

By Olivier Knox 8/24/26

The national debt passed the $40 trillion mark last week.

While the record number is staggering on its face, equally concerning is that the debt more than doubled in just 10 years.

There are many reasons for this: emergency spending during COVID-19, the 2025 tax cuts, the increasing age of the American population (and related healthcare and benefits costs) and rising interest rates. It has happened no matter which party is in power in Washington.

Predictably, the $40 trillion threshold received a lot of ink, with various interest groups expressing alarm. “The more debt we take on, the more interest costs we have to bear, which now even exceed the cost of national defense,” Michael Peterson, CEO of the Peter G. Peterson Foundation, said in a statement.

He also spelled out why Americans should care: “Every trillion we add to our debt contributes to higher interest rates and inflation, increasing the mortgages, car loans and credit card bills of all Americans.”

SO, WHAT CAN BE DONE?

At its simplest, there are two ways out of this pickle: 1) raise revenues through faster economic growth or higher taxes, or 2) lower spending through budget cuts or austerity measures. Some combination of the two would work. But neither is politically palatable.

In the absence of action to fix the problem, interest rates are likely to remain elevated. Yields on long-term government debt have soared recently, pushing the yield on the 10-year Treasury to 4.74%, up from 3.96% prior to the start of the conflict with Iran.

Treasury Secretary Scott Bessent moved last week to lower longer-term yields, saying the federal government would buy back the longest-duration Treasurys and replace them with short-term bonds.

But the relief was short-lived, reflecting the lack of faith buyers of U.S. debt have that interest rates will drop anytime soon. Meanwhile, foreign purchases of U.S. debt have declined, with Chinese holdings at the lowest levels in 14 years.

The sizable debt accrued by companies investing in artificial intelligence also is putting pressure on the bond market as those corporate bonds compete with Treasurys.

U.S. DEBT REMAINS IN HIGH DEMAND

So far, there is still strong demand for U.S. debt, as it is viewed as a safe-haven asset in times of market volatility. But buyers are demanding a higher premium for taking on the long-duration debt, perhaps a sign they are less sanguine about the future economic health of the U.S. and especially fiscal policy coming out of Washington.

“Debt is really sustainable at any level as long as there is demand,” said Sarah Hirsch, global market strategist at New York Life Investment Management. But that requires investors to have faith in the spending decisions of the U.S. government and the strength and independence of the central banking system, in this case the Federal Reserve.

But higher interest rates limit the Fed’s ability to raise rates to fight inflation. While the rate of price increases has moderated, inflation at 3.4% for the consumer price index in July is still way above the Fed’s 2% annual target.

Fed officials hold their summer research symposium later this week in Jackson Hole, Wyoming, and the gathering is often a place for a Fed chair to lay out thoughts on interest rate policy and inflation. Market observers will be watching closely when Chair Kevin Warsh gives his address on Friday.

But without the political will to tackle the problem, Americans can expect to suffer with higher prices and interest rates for the foreseeable future.

ATTACHMENT TWENTY ONE – FROM THE HILL

VANCE: BESSENT HAS ‘VERY DISCREET PLAN’ TO SHRINK $40 TRILLION NATIONAL DEBT

by Tara Suter - 08/20/26 11:10 PM ET

Vice President Vance said Thursday night that Treasury Secretary Scott Bessent has a “very discreet plan” to shrink the nation’s debt.

“He [Bessent] has had a very discreet plan, of course, supported by the president of the United States, to get the United States to a point where our economy is growing faster than our debt,” Vance said on Newsmax’s “Carl Higbie Frontline.”

“And if you look, we are on track. So, even though the debt is too high, even though we inherited this debt bomb from the Biden administration, we actually do have a plan to get the economy growing faster than the debt and that’s the most important thing,” the vice president added.

On Thursday, Bessent claimed the U.S. can “grow” its way out of the national debt, which hit $40 trillion on Wednesday.

“There’s nothing magic about the $40 trillion number, and we can grow our way out of that,” Bessent told “Squawk on the Street” co-host Sara Eisen on CNBC.

“But what we do want to signal is I think there’s been a lot of misinformation in terms of what’s going on with the deficit, what’s going on with the deficit to GDP,” he added.

Bessent said that a temporary aspect of the debt comes from tariff refunds ordered by the Supreme Court in a February ruling against emergency tariffs from President Trump.

The Treasury Department head said U.S. Trade Representative Jamieson Greer is going to implement “the same level of tariffs,” and that he expects the “2026 tariff income is going to be roughly what it was in ’25.”

Lawmakers have recently raised concerns over the national debt, decrying Congress’s inability to sufficiently deal with an issue that has become harder to ignore.

The GOP has commonly cited federal spending and entitlement programs as main causes behind the debt, with Democrats emphasizing the need for increased taxation of wealthy Americans and corporations as well as spending reforms.

ATTACHMENT TWENTY TWO – FROM THE STREET

ELON MUSK WARNS ON TAXING BILLIONAIRES AMID $40T DEBT

Three years ago, Musk said the debt was unfixable by taxing the rich. The debt just hit $40 trillion. And the asset his companies hold is up 20% this week.

· By Bibhu Pattnaik

In 2023, when the U.S. national debt stood at around $33 trillion, Elon Musk posted a warning that most people dismissed as the grievance of a billionaire protecting his own pockets.

"Even if you tax every billionaire in America at 100%, it barely makes a dent in the national debt," he wrote on X.

"In the end, the government will be forced to tax everyone to pay the debt."

According to the Treasury data, the U.S. national debt crossed $40 trillion On Aug 18. The debt has grown by $7 trillion since Musk made that post. His math has not changed. The numbers have only gotten bigger.

Why the billionaire tax argument does not add up

America has approximately 989 billionaires as of 2026. Their combined net worth is approximately $8.4 trillion. Seizing every dollar of that wealth would cover roughly 21% of the current national debt. It would not touch the deficit that adds billions more every day.

Elon Musk's AI warning about the dollar is starting to come true

According to the Congressional Budget Office, the U.S. Treasury is paying approximately $3.18 billion per day in interest alone, totaling $963 billion between October 2025 and July 2026. The debt-to-GDP ratio has now passed 120%.

Musk's conclusion has been consistent. Taxing billionaires is not a debt solution. It is a redistribution argument, a different and legitimate conversation, but it does not solve the fiscal math.

"The only way the deficit actually gets paid," he wrote in a separate September 2023 post on X, "is taxing the living daylights out of everyone."

Where Bitcoin enters the equation

The Treasury's response to $40 trillion in debt this week was not austerity. It was to double long-dated bond buyback operations, effectively injecting liquidity into the market to push long-term yields lower.

The 30-year Treasury yield had hit 5.337 % before the announcement. VanEck described the move as "reigniting fears of fiscal dominance", the concern that monetary policy is being subordinated to debt management rather than the other way around.

That is the environment Bitcoin was built for. When governments cannot stop borrowing and central banks accommodate that borrowing by managing yields, the purchasing power of the currency declines.

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Bitcoin's fixed supply of 21 million coins, enforced by mathematics, not by political consensus, does not flex to accommodate any government's fiscal problem. It cannot be printed, diluted, or debased.

Every dollar that loses purchasing power to money-printing makes a fixed-supply asset more valuable in relative terms.

This is not a new argument. It is the argument Bitcoin has been making since 2009, when Satoshi Nakamoto embedded a newspaper headline about bank bailouts into the genesis block. What is new is the scale.

When that block was mined, U.S. national debt stood at approximately $10 trillion. It has since quadrupled. Bitcoin, over the same period, has gone from almost zero to $75,740.

Musk said in 2023 that the debt was unfixable by taxing the wealthy. Trump hinted this week at buying "sizable" amounts of Bitcoin for a U.S. strategic reserve. The Treasury doubled its bond buybacks. Bitcoin surged 20%. None of these things are unrelated.

ATTACHMENT TWENTY THREE – FROM FORTUNE

THE $40 TRILLION NATIONAL DEBT AND THE BOND MARKET’S REVOLT: TOP WALL STREET STRATEGISTS EXPLAIN HOW WE GOT INTO THIS MESS

By Nick Lichtenberg August 26, 2026, 10:59 AM ET

THE MATH BEHIND THE MILESTONE

· Tax cuts in 2001, 2017, and 2025 pulled federal revenue down from an average of 19.1% of GDP to 16.7%, a cumulative $11.1 trillion hit.

· Wars in Iraq, Afghanistan, and Iran pushed defense spending from 3.5% to 4.4% of GDP, adding $3.9 trillion.

· Social Security, Medicare, and Medicaid spending climbed from 7.8% to 10.1% of GDP as the population aged, adding $12.5 trillion.

· Everything else, boosted by crisis-response spending during the 2008 financial crash and the pandemic, added another $5.2 trillion.

WHY THE OLD RULES STOPPED WORKING

A bigger fight is brewing

ATTACHMENT TWENTY FOUR – FROM BARCHART

ELON MUSK SAYS WE’RE ‘1000% GOING TO GO BANKRUPT’ WITHOUT AL AND ROBOTS — ‘WE’RE TOTALLY SCREWED’ AS INTEREST ON NATIONAL DEBT TOPS $1 TRILLION

Caleb Naysmith - Wed Aug 26, 9:41AM CDT

The U.S. national debt has grown so enormous that another trillion can almost sound like a rounding error. But for Tesla (TSLA) CEO Elon Musk, the numbers point to a much bigger problem — and his proposed solution involves artificial intelligence (AI), robotics, and a race against the clock.

Musk issued the warning during an episode of the “Dwarkesh Podcast” in February 2026, arguing that the U.S. could face financial failure without AI and robotics.

“In the absence of AI and robotics, we’re actually totally screwed because the national debt is piling up like crazy,” Musk said during the interview.

He then pointed to the cost of servicing the debt.

“The interest payments [on the] national debt exceed the military budget, which is a trillion dollars. So [we have] over a trillion dollars just in interest payments,” Musk said.

Musk took the warning even further.

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“It’s the only thing that could solve the national debt. We are 1,000% going to go bankrupt as a country, and fail as a country, without AI and robots,” Elon Musk said during the February 2026 podcast. “Nothing else will solve the national debt. We just need enough time to build the AI and robots to not go bankrupt before then.”

The Debt Problem Is Measured in Trillions

Musk’s comments came as the national debt was already approaching $40 trillion. By August, it had crossed that mark.

On Aug. 18, 2026, the U.S. national debt officially crossed $40 trillion for the first time, with U.S. Treasury figures putting total public debt outstanding at just over $40.05 trillion.

The interest bill has become an equally striking figure. Through the first 10 months of fiscal 2026, the federal government had paid roughly $963 billion in net interest costs, putting the annual bill on track to exceed $1 trillion.

That interest expense is now among the largest items in the federal budget. It can also compete with other major government priorities for limited federal dollars.

Musk’s concern is that the debt isn’t simply large — it’s becoming increasingly expensive to carry.

The U.S. debt held by the public accounts is roughly $32.3 trillion of the total, while intragovernmental holdings make up the rest. As more debt is refinanced at higher rates, the government’s interest costs can continue rising.

Musk’s Bet on Productivity

Musk’s argument is that traditional approaches won’t be enough to solve a problem of this size. His bet is that AI and robotics could dramatically increase economic productivity, allowing the U.S. economy to produce far more goods and services with fewer human hours.

In theory, that kind of productivity boom could help the economy grow faster than the debt burden, while a larger economy could also generate more taxable income and revenue.

That’s why Musk isn’t presenting AI and robotics as simply another technology trend. He sees them as a potential economic lifeline.

The challenge is the timeline.

AI adoption is already accelerating across industries, while robotics companies are working to bring increasingly capable machines into factories, warehouses, and other workplaces. But there’s no guarantee that the productivity gains will arrive quickly enough or at a large enough scale to offset the United States' fiscal imbalance.

There is also a fundamental distinction between growing the economy and fixing the federal budget. Even rapid economic growth wouldn’t automatically eliminate the gap between government spending and revenue.

Still, the investment implications are significant.

If AI and robotics produce the productivity boom Musk expects, companies building the infrastructure and software behind that transformation could stand to benefit. Semiconductor manufacturers, AI developers, automation companies, and robotics firms are among the businesses positioned around the theme.

If the productivity revolution falls short, investors still have to contend with the other side of the equation — a national debt above $40 trillion and an annual interest bill moving beyond $1 trillion.

Musk’s forecast is deliberately extreme. But the underlying numbers are difficult to ignore.

The debt has crossed $40 trillion. The cost of servicing it is approaching another trillion-dollar milestone. And Musk’s argument is that the U.S. needs AI and robots to dramatically expand economic productivity before the debt becomes impossible to manage.

For investors, the question isn’t whether robots can literally pay the United States' bills. It’s whether the productivity gains from AI and automation can become large enough to change the economic equation before the interest bill gets even bigger.

ATTACHMENT TWENTY FIVE – FROM GUARDIAN U.K.

IS THE TRUMP TREASURY PANICKING OVER THE LEVEL OF US DEBT?

By Kenneth Rogoff Wed 26 Aug 2026 01.00 EDT

With the federal deficit near 6% of GDP and the national debt over $40tn, America’s fiscal position looks increasingly precarious

Bessent ‘will lose’ battle with bond markets, ex-mentor warns

Are we seeing the first signs of panic in Donald Trump’s Treasury? The US is by far the world’s biggest debtor, and the steady rise in global long-term interest rates – which I have long argued was inevitable – is starting to cause real pain.

Until now, the Treasury secretary, Scott Bessent, has dismissed concerns about US debt, which recently surpassed $40tn, as a big nothingburger. Growth, in his telling, will be so spectacular the US will easily be able to meet its interest obligations without any significant tax rises or spending cuts, while the rest of the world will happily keep feeding it money. But if Bessent really believes that, why is he trying to strong-arm the bond market by fiddling with the maturity structure of government debt?

The obvious first move, and the one the markets are looking for, is to address the underlying problem by reining in America’s massive federal deficit, which is now running at roughly 6% of GDP. Bessent has repeatedly assured markets that the Trump administration’s voracious borrowing is temporary, and that AI-led growth will generate an abundance of tax revenues that will soon bring the deficit down to a somewhat more manageable 3% of GDP.

Trump’s hypocritical new tariffs are a chance for the world to fight back

By Joseph Stiglitz

That could happen, but there are many reasons to think that pain-free budget consolidation is wishful thinking, not least because AI profits are likely to prove much harder to tax than labour income. In the near term, the costs of supporting an ageing population, paying for what appears to be an inevitable surge in military spending and caving to intense populist pressure for more public spending will probably rise at least as fast as revenues.

Making matters worse, the premium on long-term US treasuries – a major part of the dollar’s “exorbitant privilege” as the global reserve currency – has largely evaporated. US debt no longer trades as a special safe asset relative to that of other advanced economies. The value of dollar dominance is thus fading even under the best of circumstances. And if budget pressures eventually trigger a crisis, the result could be a rapid loss of the dollar’s global market share that might otherwise take decades.

What, then, should the US Treasury do? The textbook answer, as Bessent well knows, is to take steps toward major budget consolidation, and not the blundering, heavy-handed random cuts that Elon Musk and his Doge acolytes pursued in 2025. Bessent’s problem is that his boss, Trump, understands that American taxpayers are not prepared for any kind of genuine austerity.

That is why Bessent’s turn toward bond buyback gimmicks is worrying. In effect, Bessent is promising to take long-term debt out of the system and replace it with short-term debt, much as the Federal Reserve does when it engages in quantitative easing. Such an approach can make sense in a panic, when there is a good chance long-term rates will come back down, but there is little evidence that the market is the one panicking right now.

In fact, global long-term real interest rates are rising everywhere, suggesting that US exceptionalism no longer applies, at least not to the same degree. Bessent has argued for some time that long-term rates are too high, favouring short-term borrowing as a way to wait out the spike that he believes will soon subside.

He may be right. Plenty of prominent economists, particularly those who have long insisted that interest rates would remain ultra-low for ever, still cling to the view that today’s elevated rates are an aberration. Unfortunately, studies based on historical data suggest that the recent increase is better thought of as a normalisation and that over the long term rates are more likely to rise than to fall.

With the national debt now exceeding $40tn, this is not the time to tell investors that there is “nothing magic” about that number. Taken with the growing fiscal deficit, higher long-term interest rates and mounting spending pressures, America’s debt burden is a very real concern.

More troubling still, Bessent’s ham-fisted attempt to control the bond market undermines his hard-earned credibility as the safest pair of hands on the Trump 2.0 economic team. Until now, Bessent has managed to steer Trump away from some – albeit not all – of his most damaging impulses, whether on tariffs or the appointment of the Fed chair. Of course, he has to toe the line on hot-button issues near and dear to Trump’s heart, insisting that the US has in effect defeated Iran and that nothing will benefit working Americans more than upending the international trade order. Otherwise, he would be fired immediately. But bond markets are not so easily pushed around.

Bessent, the former bond trader and hedge fund manager, scored a major win when he supported the Argentinian peso last autumn, and he probably did not do too much damage by unexpectedly backing the Japanese yen over the summer, even if the effects faded fairly quickly. By contrast, his attempt at a Treasury-led quantitative easing has done little to stem the rise in long-term yields. Given that there is not going to be any meaningful debt reduction before November’s midterm elections, bond markets have good reason to remain deeply sceptical of America’s fiscal trajectory.

Kenneth Rogoff is a professor of economics and public policy at Harvard University. He was the IMF’s chief economist from 2001 to 2003.

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