EP:59 - Bob Murphy Cracks Wise
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What is the U.S. Treasury’s current debt‑bubble strategy and why is it risky?
tonight i'm provoked hey rabbi schmoy i don't like the way you imply that people should be killed just for doing a show with daryl cooper hey
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You're watching Provoked with Daryl Cooper and Scott Horton. Debunking the propaganda lies of the past, present, and future. This is Provoked.
Yay, it's the show. With me... And the great Daryl Cooper, Martyr Made. Good evening, sir. How's it going? Good, good. And our guest, the heroic and great Bob Murphy, author of a great many books. Of course, well, here, let me share screen. Watch this. This guy, I already hit the button. There it goes. He is, of course, a senior fellow at the Ludwig von Mises Institute of Austrian Economics. Yeah. Mises Institute. And also, he is the host of The Bob Murphy Show. And I owe you a solid apology here, Bob. I interviewed you on my show, The Scott Horton Show, a couple weeks ago. And I forgot to mention that you have a show. And it's a great show, and I've been on it. And also, I listen to it quite often when I'm traveling.
So... There's that too. And then also look at all these great books, man. Lessons for a Young Economist, Understanding Money Mechanics, The Politically Incorrect Guide to Capitalism, and The Politically Incorrect Guide to the Great Depression and the New Deal. Choice. And he has the study guide to human action and the theory of money and credit. And yeah, you know, it's some Mises as perfected by Rothbard as crystallized by Murphy, the great Austrian school economist. So great to have you here on the show, sir. And I guess what I want to ask you about is that the government is printing money to buy up their own bonds, but everything's cool, right?
No, it's not, actually. Let me just mention, thanks for having me, guys. This is great. I watched the show, and it's kind of weird hearing the intro and realizing, wait, I got to be alert here because I'm going to be talking. You are, yes, you were a guest on my show, and for a while, you were the most listened to episode. And then you got
edged
out by Jeff Herb, because you were talking about Waco. And then you got edged out by Jeff Herb, and you were talking about the pure time preference theory of interest to show how nerdy my audience is. That's cool, though. I like that stuff. So yeah, they're printing money again. Just to clarify for your listeners, I know we have the memes about Money Printer Go Burr and all that stuff, but actually the balance sheet did start shrinking a few years ago. So under Powell, he did try to bring it down, but then they had to flip it back with COVID, and then more recently it started rising again. So they have been printing money. And also what's going on too, I'm sure you guys have seen, is They're doing a deal where the Treasury's trying to soak back the longer-dated Treasuries and refund them with shorter-dated ones.
My guess is they're doing that to save on the interest cost, right? Because it's really starting to bite now that rates are rising. Just to give people a quick back of the envelope, The interest right now on the debt, there's $32 trillion debt held by the public. So as the yield curve rises just one percentage point, that's an extra $320 billion a year in just interest expense. That's extra. That's not the total bill. The total bill right now is over a trillion. Just every one percentage point that rates go up, that's an extra $320 billion just in annual service and costs, even if they balance the budget going forward forever. just of what they've already accumulated, right? That's more than most governments spend, period.
So I think that's partly why they're flipping to try to, you know, because the shorter bonds have a lower rate than the longer ones. So I think that's partly what they're doing. But of course, that just means they're way more vulnerable down the road because now their debt is shorter term. So as it rolls over, you know, they get hit with rate hikes more quickly.
Oh, go ahead. Yeah, thanks.
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Chapters
8 chapters
1
What is the U.S. Treasury’s current debt‑bubble strategy and why is it risky?
0:00–8:30
2
How are rising Japanese interest rates affecting the yen‑carry‑trade and U.S. Treasury demand?
8:30–18:30
3
Why is the dollar’s role as the world’s reserve currency being challenged?
18:30–25:59
4
What does Trump’s commentary reveal about the link between strong growth and interest‑rate spikes?
25:59–34:47
5
How could the U.S. government respond to the debt problem – inflation, default, or massive spending cuts?
34:47–50:38
6
What are the social consequences of a high‑inflation environment and a potential U.S. collapse?
50:38–1:10:01
7
How might AI, automation, and robotics reshape jobs, productivity, and economic inequality?
1:10:01–1:20:37
8
What are the worst‑case scenarios for the United States if the dollar crashes and the empire fragments?
1:20:37–1:24:43