The news that the nation’s gross national debt topped $40
trillion for the first time on Wednesday, should have come as no surprise for
anyone following the litany of fiscal fiascos of the Trumptards. This year
alone, the U.S. is on track to borrow more than $2 trillion to help pay for its
spending on the war of choice in Iran as well as the sweeping tax cuts that Reeps
enacted in 2025 with their monstrously misnamed ‘big beautiful bill’ (BBB)
When he first ran for the White House in 2016, Trump – typical
with his braggadocio- claimed he would “eliminate the national debt within
eight years.” But those of us with more
than air between the ears knew that cockeyed boast carried about as much
reality as when he promised in the 2024 campaign to ‘stop the Ukraine war on
day one’ and “bring grocery prices down
on day one” as well. Neither has happened, and in fact he basically washed his
grubby little orange hands of Ukraine – letting Europe carry the burden – while
alienating the NATO countries. As for food cost, they’ve spiraled out of
control to the point most of the Middle Class has to go to dollar stores – even
as gas hits over $4 a gallon.
Let’s also recall that
by the end of his first term the ignorant putz had increased the national debt
by nearly $7.8 trillion in debt via his spending and GOP tax cuts.
And while the Neolib nabobs in the media carp about “the cost
of social safety net programs”, they’re mostly mum on how the Reeptards’
BBB bill and its cutting of nearly $1 billion from Medicaid, as well as cuts in
subsidies to the Affordable Care Act – causing millions to leave the ACA and go
without insurance. Then add potential cuts to Medicare which may require
sequestration resulting in its own cuts.
When legislation significantly adds to the national debt,
which already exceeds $36.2 trillion, it triggers “sequestration,” or
compulsory budgetary reductions. In that scenario, Medicare cuts would be
capped at 4 percent annually, or $490 billion over 10 years, the CBO reported
in response to a request from Rep. Brendan Boyle (Pennsylvania), the top
Democrat on the Budget Committee.
Make no mistake, any cut in Medicare funding would have a
chilling effect on older Americans and people with disabilities at a time when
a fast-aging population and rising health-care costs are already straining the
system. Many hospitals, especially in rural areas, rely on Medicare for more
than half of their funding
What form would such cuts take? From past proposals the most
likely are:
- Beneficiaries would cough up co-pays for each visit
(including traditional Medicare folks)
- Denial of access to most expensive options (i.e. My ER visit
due to lung issues back in February, costing $27,000, would have been
denied.)
- Limited access to needed drugs, i.e. such as my ADT chemo
drug Firmagon.
- Increased eligibility age - i.e. from 65 to 66 or 67.
- Limited primary physician (as well as specialist) access.
These are the most plausible cuts but don't assume the
degenerate Reeps would not come away with more
Even Treasury Secretary Scott Bessent - when not yapping loopy twaddle ('it will pass, nothing to fret over') has at least been more forthright than most Reeps to explain why deficits are growing. He said yesterday that spending associated with the war with Iran had forced the country to spend more on the military, and that tariff refunds had undercut the Trump administration’s progress toward reducing the deficit as a share of gross domestic product in 2025
Yes, the $40 Trillion national debt level is indeed “an ominous milestone
for an economy that sits on a shaky fiscal foundation after decades of
borrowing” in the words of one NY Times nabob.
But be sure 90 percent of this is from the Reeps’ recklessness – which will now
take a Dem intervention to dig out of. Assuming we can enhance the intelligence
of the electorate enough to put Ds back in power in 2028.
by Robert Reich | August 20, 2026 - 5:08am | permalink
— from Robert Reich's Substack
Friends,
The U.S. national debt has officially surpassed $40 trillion, months earlier than forecasters had expected — because of billions of dollars in lost revenue from Trump’s invalidated tariffs, Trump’s tax cuts (mostly to big corporations and the very wealthy), and the soaring costs of Trump’s war.
Trump’s hair-brained treasury secretary, Scott Bessent, says there’s nothing to worry about because the fiscal trajectory will stabilize. Investors obviously don’t believe him because they’re demanding much higher compensation for buying and holding American bonds. The yield on 30-year U.S. Treasuries hit its highest level in nearly two decades this week, reflecting those growing concerns.
And:
U.S. Debt Hits $40 Trillion as America’s Borrowing Binge Continues - The New York Times
And:
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