Another aspect of this massive debt ...
Pres Trump has been giving Chmn Powell grief about not lowering interest rates.
Yet Pres Trump is requiring the US to borrow more, a lot more, A LOT MORE.
So, the basic economic rules of supply and demand apply also to US bonds ...
If you want more people to buy them, you have to lower the price. But, with bonds, when you lower the price the interest rates goes up.
So, Pres Trump's demand for Chmn Powell to lower interest rates, is that making it more difficult for the US to finance it's debt?
Add to that ... China, a major purchaser of US debt in the past seems to be backing off from those purchases, maybe even trying to sell the bonds it current owns.
Is China Engaging in Large-Scale Dumping of US Treasury Securities? (April 2025)
internationalbanker.com
... Speculation has persisted that China did not, in fact, "ignore" the Trump tariffs but instead dumped substantial quantities of its US debt holdings. "China may be selling Treasuries in retaliation," wrote Ataru Okumura, a senior interest-rate strategist at SMBC Nikko Securities in Tokyo, in a note to clients, as reported by Bloomberg on April 11. If so, China has an incentive to show "it won't hesitate to cause turmoil in the global financial market in order to improve its negotiating power against the US".
Yields also markedly rose overnight after US markets closed, when overseas markets were active. "These overnight spikes are more than just market noise. They may be the clearest signal yet that China is quietly -- but deliberately -- selling US Treasuries," Joel Shulman, the founder, managing director and CIO of EntrepreneurShares, observed in an April 9 article for Forbes. "And the implications could be significant for the US economy and financial markets."
When reviewing China's recent actions regarding its net US bondholdings"a period that has seen the country sell substantially more US Treasuries than it has bought -- one might be inclined to suggest that Beijing could be behind this latest bond-market rout. ...
Yeah, remember when Pres Trump TACO'd on his huge China tariffs within days?
Could the above be the reason?
imo, this does not not look like a happy outcome to me.