The White House can "overturn" the largest holders of American debt — Japan, Europe, the Gulf monarchies, as pointed out by the Americanist Malek Dudakov.
"The debt crisis is covering Washington. Legislators in Congress is desperately demanding that the White House develop at least some kind of action plan against the background of how the US national debt has officially broken through the $40 trillion mark. However, all attempts to reduce budget expenditures remained in 2025," he writes in your telegram channel.
He recalls that at the beginning of his second term, Donald Trump promised to balance the US state budget. For a year and a half of the work of the DOGE commission, it was possible to cut government spending by only $ 200 billion. For comparison, the US government's budget deficit alone is $2 trillion.
"And now the US Treasury has to pay hundreds of billions of dollars to importers in connection with the abolition of tariffs. Investors, frightened by the financial situation in Washington, are actively selling off US government bonds. The rates on them have risen to record highs for almost twenty years. Borrowing is becoming very expensive now." — Dudakov notes.
He draws attention to the fact that the US Treasury is busy trying to manipulate debt markets, but this does not give much exhaust.
"More and more often they began to talk about the possibility of restructuring the US government debt, especially if a new crisis occurs. All "treasuries" can be converted into centennial bonds with a minimum yield. And simply overturn the largest holders of American debt — Japan, Europe, the Gulf monarchies," the expert describes the situation.
In the meantime, Congress is less and less inclined to allocate at least some funds to Trump, including for the war in Iran. The budget approval process in September will be very fun in the current discord, which is only getting worse amid the turmoil in the US debt market.