A narrative cleverly generated and widely circulated by the communists and leftists has been gaining ground across even the financially literate classes - “the United States’ huge national debt results from unaccountable dollar printing”. This propaganda oversimplifies a complex reality, ignoring the U.S.’s unmatched ability to service its debt and its still robust economic fundamentals.

The misconception arising from this misinformation onslaught dismisses the democratic nation’s technological prowess and research leadership, hard work and fairly sound economic base.

U.S. Economy - Ratings

Almost all ratings of the U.S. economy have had the impact of the Biden-Harris Administration’s reckless spending, but still, the ratings are in top rankings and mostly with a stable outlook. The Trump Administration is taking serial measures to strengthen the fundamentals, and the ratings will definitely have the impact of these vital measures.

Strong Ratings are indicative of the U.S. economy’s abilities to meet the debt obligations. AAA/Aaa ratings signify the highest level of creditworthiness, indicating a very low risk of default. AA+/Aa1 ratings indicate a very strong capacity to meet financial obligations, but with slightly higher risk than AAA. The outlook indicates the likely direction of the rating in the future. A negative outlook suggests further downgrades are possible if economic conditions worsen.

The current ratings are as follows -

Moody's: Aa1, with a stable outlook.

S&P: AA+ with a negative outlook, as it was.

Fitch: AA+ with a negative outlook, as it was.

While the Biden-Harris Administration’s reckless spending fuelled debt and inflation; the Trump Administration’s efforts - including the Department of Government Efficiency (DOGE), the One Big Beautiful Bill Act (OBBB), and rescissions - aim to control spending, leverage tariff revenue and bolster growth as well as investment positioning the U.S. economy on a stronger pedestal.

U.S. Debt Position and Debt Accountability

The U.S. remains the most accountable nation in managing its debt. The Federal Reserve operates independently, balancing monetary policy, while Treasury securities are issued transparently and purchased globally, reflecting trust in the American dollar as the world’s reserve currency.

The U.S. has never defaulted, servicing $600 billion in annual interest payments—about 15% of federal spending—with a $25 trillion GDP and diversified economy.

This accountability is reinforced by Congressional oversight, market discipline and innovation from companies like Apple and institutions like MIT, driving tax revenues and growth.

However, the Biden-Harris Administration’s policies of reckless spending, much of it on non-citizens / illegal immigrants and on populist measures to lure votes, strained this foundation.

Their $4.7 trillion in new borrowing, including the $1.9 trillion American Rescue Plan, pushed the debt from $27.8 trillion to $35.3 trillion, with deficits hitting $1.7 trillion in 2023.

These measures, alongside $1.7 trillion in regulatory costs, drove inflation to 20% since 2021, eroding real wages by $2,230 per worker.

This spending spree exacerbated economic pressures, increasing costs for housing and groceries.

Trump Administration and Economic Reforms

The Trump Administration is addressing this fiscal challenge through strategic reforms. The OBBB, passed by the House in May 2025, delivers $1.7 trillion in mandatory savings—the largest in history—through welfare reform, energy deregulation and border security.

Contrary to initial Congressional Budget Office (CBO) estimates suggesting a $2.4 trillion deficit increase, these projections failed to account for tariff revenue and mischaracterised the extension of the 2017 Tax Cuts and Jobs Act (TCJA) as new tax cuts. The TCJA’s extension maintains existing policy, not adding new revenue losses.

Treasury Secretary Scott Bessent and White House readouts clarify that CBO’s $2.8 trillion tariff revenue forecast over a decade offsets the bill’s net fiscal impact, potentially yielding a $500 billion surplus besides the likely surplus from DOGE and other cuts. CBO has now corrected its projections.

DOGE targets $180 billion in savings by reducing federal inefficiencies, though these figures would need more verification. A $9.4 billion rescissions package sent to Congress cuts funds from programs like the Corporation for Public Broadcasting, signalling spending restraint. The CBO’s revised tariff estimates, projecting $2.8 trillion in revenue, align with Bessent’s assertion that tariffs on imports (10-50%) will fund TCJA extensions and new policies like no taxes on tips or overtime, boosting U.S. investment and U.S. manufacturing.

The U.S. economy - the way forward

The economy remains fundamentally strong, with 2.5% growth in 2024 despite one of the worst administrations led by Autopen Biden, at least from the economic point of view. There was 3.8% unemployment, and yet $3 trillion in exports. The economy is now poised to take off with a drastic reduction in trade deficits. The $971 billion trade deficit is offset by capital inflows, debunking the oversimplification that the U.S. prints dollars to import goods.

The dollar’s reserve status ensures low borrowing costs and global demand for U.S. Treasuries reflects confidence.

Trump’s tariffs and deregulation aim to enhance domestic production, potentially reducing import reliance.

Looking forward, Trump’s policies—extending TCJA, expanding energy production, and streamlining infrastructure—are poised to drive at least 3% annual growth, surpassing CBO’s 1.8% forecast.

Despite concerns about tariff volatility, these measures, combined with $6.7 trillion in projected decadal deficit reduction from tariffs, discretionary cuts, and regulatory rollbacks, would strengthen fiscal health.

Conclusion

The U.S. debt narrative must move beyond myths of unaccountable printing. The nation’s accountability, innovation and economic resilience enable it to manage its obligations. While Biden-Harris spending fuelled inflation, Trump’s reforms via OBBB, DOGE and tariffs chart a path to fiscal responsibility and economic leadership.

For those who are “strongly” predicting and “eagerly” waiting for the American Economy to collapse, they will have to “wait” longer. Those whose hype is based on the huge number of debt - 36 trillion USD, they might have to realise that this also indicates the creditworthiness of this democratic, open-market numero uno economy. Remember, number two is way behind number one.

Let us not get bogged down by fake narratives being constantly pushed by the leftist anti-democratic, anti-open-market forces led by the CCP - the Chinese Communist Party.