J. Cal

$3,500 per American.

$3,500 per American.

J. Cal, do you think either party or either candidate in this presidential election is going to drive a different outcome in terms of federal spending and the long-term impact on deficit and as a result, rates?

J. Cal, do you think either party or either candidate in this presidential election is going to drive a different outcome in terms of federal spending and the long-term impact on deficit and as a result, rates?

Well, it does depend also on how levered they are. So just to give you guys a sense, total U.S. household, corporate, and government debt, which includes state and local and federal. So household debt in the U.S. is about $18 trillion. Corporate debt is about $11 trillion. State and local government debt is $3 trillion. Obviously, the federal debt is $36 trillion.

Well, it does depend also on how levered they are. So just to give you guys a sense, total U.S. household, corporate, and government debt, which includes state and local and federal. So household debt in the U.S. is about $18 trillion. Corporate debt is about $11 trillion. State and local government debt is $3 trillion. Obviously, the federal debt is $36 trillion.

That adds up to a whopping $68 trillion of total debt across the U.S., which if you assume a 6% average interest rate, you got corporate debt and household debt, so it's a little more risky, so it carries a higher rate. That means we're spending about $4 trillion a year of an economy that's only 29 trillion a year to service the debt, just to pay the interest on the debt.

That adds up to a whopping $68 trillion of total debt across the U.S., which if you assume a 6% average interest rate, you got corporate debt and household debt, so it's a little more risky, so it carries a higher rate. That means we're spending about $4 trillion a year of an economy that's only 29 trillion a year to service the debt, just to pay the interest on the debt.

So 15% of every dollar that trades hands is going towards interest payments on existing leverage, on existing debt. It's a highly leveraged system. And if you look around the world, this problem is not just a US challenge. Global leverage is a problem that's now becoming a crisis for countries everywhere. The UK is waiting on a big budget proposal this week.

So 15% of every dollar that trades hands is going towards interest payments on existing leverage, on existing debt. It's a highly leveraged system. And if you look around the world, this problem is not just a US challenge. Global leverage is a problem that's now becoming a crisis for countries everywhere. The UK is waiting on a big budget proposal this week.

Higher taxes is what's going to be in there to make up for a budget deficit, which is currently 4.4%. of GDP. The UK economy is only growing at 0.9% a year. France has a major budget crisis underway right now. They're struggling to reduce their deficit from 6% down to 5% of GDP. And they've got skyrocketing bankruptcies. 74% of people that can work in that country are working.

Higher taxes is what's going to be in there to make up for a budget deficit, which is currently 4.4%. of GDP. The UK economy is only growing at 0.9% a year. France has a major budget crisis underway right now. They're struggling to reduce their deficit from 6% down to 5% of GDP. And they've got skyrocketing bankruptcies. 74% of people that can work in that country are working.

And that's because of large social programs that support the balance, 7.3% technical unemployment. And they're raising taxes on 440 firms, 440 companies in the country that make a billion or more in revenue with a, quote, temporary tax. There's a 4% surcharge on income over 500K that's going into effect, second home real estate taxes, and so on.

And that's because of large social programs that support the balance, 7.3% technical unemployment. And they're raising taxes on 440 firms, 440 companies in the country that make a billion or more in revenue with a, quote, temporary tax. There's a 4% surcharge on income over 500K that's going into effect, second home real estate taxes, and so on.

France is struggling to figure out a way to generate revenue to make up for the shortfall. In Brazil, there's a major budget crisis. States owe $130 billion to the federal government there. Inflation is accelerating at 4.6%. Rates are gonna go higher and longer, complicating other economic growth opportunities in the country.

France is struggling to figure out a way to generate revenue to make up for the shortfall. In Brazil, there's a major budget crisis. States owe $130 billion to the federal government there. Inflation is accelerating at 4.6%. Rates are gonna go higher and longer, complicating other economic growth opportunities in the country.

So this is becoming kind of a global leverage problem, which might explain the flight to safety in assets like gold and Bitcoin, and is gonna present a lot of real struggles for every global economy Now, the question is, does the US dollar maintain its reserve status? Because ultimately, I think it is inevitable that the Federal Reserve in the United States is going to need to buy the debt.

So this is becoming kind of a global leverage problem, which might explain the flight to safety in assets like gold and Bitcoin, and is gonna present a lot of real struggles for every global economy Now, the question is, does the US dollar maintain its reserve status? Because ultimately, I think it is inevitable that the Federal Reserve in the United States is going to need to buy the debt.

They're going to need to monetize the debt, which means printing money. There is no one else to buy the debt. So pull up the China chart, Nick. China's historically been the biggest buyer and owner of US treasuries. But here's what's happened in the last couple of years. It peaked at about $1.3 trillion about 10 years ago.

They're going to need to monetize the debt, which means printing money. There is no one else to buy the debt. So pull up the China chart, Nick. China's historically been the biggest buyer and owner of US treasuries. But here's what's happened in the last couple of years. It peaked at about $1.3 trillion about 10 years ago.