Addressing Our Debt

So, I did a video on the debt and why this debt that we’re racking up at unbelievable levels is going to be a problem. But I’d like to get into a little bit more detail about that. So as I last addressed, we have $34 trillion in debt. I know that number is just crazy, because it is crazy. We are adding about a trillion dollars in new debt every four months. The interest cost on the debt, as I explained last time, is now the second largest expenditure in the entire U.S. federal budget, only after Social Security — that costs us about 1.2 trillion — but bigger than our entire Defense Department. But why is this debt going to become such a problem? And why do I call it a debt trap? For this very simple reason: Eventually, this debt will crowd out the spending in the private sector and slow the economy even worse, where you just cannot even pay back that debt. Now, if you’re an individual or company or most other countries in the world, what happens? You go bankrupt. You restructure your debt. Your debt gets reduced, and then you start anew. The problem with the US government, if we ever defaulted on $34 trillion in debt, guess what would happen? We would collapse the whole globe into a depression that would probably go on for at least 1 to 2 generations. So what are we left with? With all this debt? Really only one option. And that is that the Federal Reserve, the government’s bank, will start buying that debt. It’s called monetizing the debt. They will print more money. And as a result of printing more money, that means inflation will rise. Why? Because, as I always say, inflation is largely always a monetary event. You print more money chasing the same amount of goods and services, that will cause prices to rise. So what we’re going to see, just like we’ve seen the last few years, because Joe Biden and Tammy Baldwin has supported them all the way, is racking up all this debt. The Federal Reserve balance sheet shot straight up. They had to monetize that debt, increase the money supply. That hammered everybody with inflation. While these inflationary surges are going to become more frequent. Inflation will come down, they’ll start monetizing the debt. Within a year, year and a half, that inflation rate will explode higher. What does this eventually do? It destroys the quality of life of all Americans, particularly middle-class and working-class Americans, and particularly the elderly that live on fixed incomes. So this needs to stop, and stop now, and we got to put together a plan to start getting us out of all this debt and give our kids a future. Thank you for your time.