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Posted on 08/21/2026 12:12:03 PM PDT by Presbyterian Reporter
America is caught in a historic capital squeeze:
On one side: Trillions Washington must borrow to pay for the past. On the other: Trillions the economy needs to build the future. Why it matters: The next president will inherit a fiscal reckoning decades in the making. The price it exacts — on taxes, benefits, borrowing and investment — could shape America's prosperity and power for generations.
Zoom in: President Trump said in 2016 that he could eliminate what was then roughly $19 trillion in national debt within eight years. On Tuesday, the debt crossed $40 trillion, after growing by $3 trillion in the past year alone.
About $32 trillion is owed to investors and other outside holders. The rest is debt the government owes to its own accounts, including Social Security and other federal trust funds. Treasury must refinance $9.7 trillion in debt coming due this fiscal year while covering a deficit the Congressional Budget Office now projects at roughly $2.1 trillion. That creates a punishing cycle: Old debt comes due, Washington replaces it with more expensive debt, and the resulting interest bill feeds future deficits.
(Excerpt) Read more at axios.com ...
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The Tech Bros and Electric Utilities (and many, many other corporations) are issuing billions of bonds to finance the capital expenditures to build Artificial Intelligence (otherwise known as Big Brother Data Centers).
And both the Feds and the AI bros are wondering why interest rates are increasing when there is this huge demand for 'other people's money'.
Now Big Tech is becoming one of the biggest new forces in global debt markets.
Bond sales by the “hyperscalers” building AI infrastructure are on pace to roughly double in 2026. Goldman Sachs projects debt will fund more than a third of their AI spending by 2027.
Nvidia is working with BlackRock, Goldman Sachs, KKR and other Wall Street giants on plans to marshal more than $500 billion for AI infrastructure.
Stunning stat: Nine major tech companies have already spent roughly $600 billion on capital projects over the past year.
A Wall Street Journal analysis found they have another $3 trillion in future commitments, mostly tied to AI, that aren’t yet reflected on their balance sheets.
The big picture: America’s debt burden is approaching the point where it starts reshaping household finances, presidential politics and the country’s economic choices.
The big question is whether there will be a return on all that investment. Nobody knows.
America is getting more expensive for the foreseeable future.
They could cut spending and raise taxes(no so much as to curb incentive) and grow the economy by creating value (manufacturing).
And it corresponds with the price of tea in China.
Ridiculous
EBT payments will be reduced.
Taxes will increase.
Keep buying ammo.
A day of reckoning is coming. Until we default on the debt, nothing will be done.
One glance at this historical cost of American debt is enough to verify your statement.
WE Americans have built a huge wall that will soon topple over on us, creating much pain.
But what is to be done since paper, ink and faith have always been in great supply.
Slim to none chance AI pulls us out of it. That’s Trump’s bet now. As Clinton-Gore invented the internet, so too Trump inventing AI.
AI construction boom
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