MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

U.S. national debt hits $38 trillion and Washington is ‘numb to our own dysfunction

Sven
edited October 23 in Other Investing
Budget committee warns that U.S. national debt hits $38 trillion.
Rather, it’s the interest being paid to service it. As of September the U.S. spent $1.21 trillion to maintain the debt— 17% of the total federal spending in fiscal year 2025. That interest rate is also increasing over time. Just a couple of years ago, in 2021, the rate of repayment by the U.S. government was, on average, 1.61%. Now it’s 3.36%.

According to the Congressional Budget Office (CBO), President Trump’s One Big Beautiful Bill Act (OBBBA) will add $3.4 trillion to national debt by 2034. That number is the net of a decrease in spending of $1.1 trillion and a decrease in revenues of $4.5 trillion. The White House has repeatedly argued that the revenues expected to be generated by tariffs, estimated by the CBO at $3.3 trillion over the next decade, will effectively balance the books.

https://msn.com/en-us/money/economy/u-s-national-debt-hits-38-trillion-and-washington-is-numb-to-our-own-dysfunction-budget-committee-warns/ar-AA1P2CuV

The number should be alarming to treasury holders. Future market on gold and silver are moving up again on Thursday, October 23, 2025. What does that reveal ?
https://finviz.com/futures.ashx

Like Capital One commercial said “what is in your wallet?” Mine has been moving oversea.

Comments

  • larryB
    @Sven. Moving overseas? As in global stocks and bonds or moving capital offshore? We were living in Mexico a long time ago and one of our ex pat buds decided to become a peso millionaire. He was attracted to the seemingly high interest rates but when he cashed out he lost a ton as the cambio rates had changed.
  • Sven
    @larryB, what i meant is to allocate our investment more toward foreign stocks and bond. They are closer to 50/50 US vs foreign. For a long time US stocks have done well, but time has changed with this administration.

    While our family had the fortunate to travel extensively. Yet there are many place we have not explored. As far as moving to another country, we are not ready to make that move.
  • CrashCrash
    Sven said:

    @larryB, what i meant is to allocate our investment more toward foreign stocks and bond. They are closer to 50/50 US vs foreign. For a long time US stocks have done well, but time has changed with this administration.

    While our family had the fortunate to travel extensively. Yet there are many place we have not explored. As far as moving to another country, we are not ready to make that move.

    https://www.imidaily.com/africa/botswana-sets-new-cbi-price-floor-at-75k-launches-early-2026/
  • CrashCrash
    edited 4:36AM
    We can't bear the thought of moving again. When I was single and a professional student, it was much easier. If need be, the entire EU "is our oyster." (Or indeed, the UK.) Georgia and Albania will allow even tourists to remain for a whole year

    image
  • larryB
    @sven. That’s exactly where our house is investing. We are not adding anything to US equity and working towards 50/50 or even more ex US than that. I keep going back to a two fund portfolio of Dodge and Global Stock Fund and Dodge and Cox Global Bond Fund,,,, mixed to taste haven’t pulled the trigger yet. We are very risk adverse and in preservation mode.
  • CrashCrash
    larryB said:

    @sven. That’s exactly where our house is investing. We are not adding anything to US equity and working towards 50/50 or even more ex US than that. I keep going back to a two fund portfolio of Dodge and Global Stock Fund and Dodge and Cox Global Bond Fund,,,, mixed to taste haven’t pulled the trigger yet. We are very risk adverse and in preservation mode.

    owning: EWS (Singapore ETF)
    watching: DHT (marine shipping.)
  • larryB
    @crash. My three guiding thoughts are: don’t lose money, less reliance on the US and fewer moving parts. Heading toward the classic Boglehead three fund portfolio. Not there yet. .
  • Sven
    @LarryB and @Crash, great choices for long term and stable investment. We use diversified index funds for oversea exposure. Emerging market is volatile, but active managed Seafarer funds provide lower risk to this asset class. We swapped half of DODIX for DODLX, and very impress with D&C’s bond construction.

    My dream trip would be traveling with a VW Vanagon from one national park to another. Bought a lifetime Park Pass when i turned 60, the west coast have many great destinations yet to be explore.
  • beebee
    @Sven,

    How About considering RV Relocation?
    Picture this: over the course of a year, a few dozen international families fly into LA, rent an RV, and take it to the Pacific Northwest for a week of secluded camping. Now, the branch in Bend, Oregon, has a small fleet of RVs where there’s no demand, and the LA franchise has a shortage.

    To get some of those RVs back where they came from, the branch in the smaller town will start relocating RVs and camping vans to busier centers in time for the rush. They accomplish this by renting them out for a low day rate—as cheap as $1 a day or even for free!
    https://blog.storage.com/relocating-rvs/
Sign In or Register to comment.