How The US Is Quietly Erasing The $39 Trillion National Debt
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You miss the fourth option which would be to turn our 50 trillion dollars in debt into a tokenized system in which the government flips from physical to digital making the companies that want to build services digitally buy there debt and the consumer purchases it so they can send money and purchases for games and more which is what is happening. Look at the frame work they are laying
THE NATIONAL DEBT
The United States now owes nearly $40 trillion, is on pace to reach roughly $50 trillion by 2030, and is adding about $6 billion in debt every day. But the real problem is not just the debt itself, it is the interest. When rates were near zero, the government could borrow heavily without much pain. Now that rates are higher, interest costs are skyrocketing, creating what many call a debt spiral.
đ thanks for the pic đ¸
THREE WAYS OUT
When a government has this much debt, there are only three realistic paths: austerity, default, or inflation. Austerity means tax hikes and spending cuts, but that is politically almost impossible because it would require painful cuts to programs like Social Security, Medicare, and defense. Default would be catastrophic because U.S. Treasuries are the foundation of the global financial system. That leaves the third option: slowly shrinking the debt through inflation.
The G0v's monetary budget policy is PURE wastefulness! The stories I have heard from actual people working inside, says they cannot shrink the budget because they will never get it back. So, they use our money in such a great inefficient manner and at the end of the fiscal year literally throw away new assets, unused assets by the semi-truck loads, so they can keep the same budgets for next year and make 2 hrs. of work last all day per person! Sound like good use of your money? And this is not even the fraud part...Every company in the world that operates as our G0v does, would have been bankrupt many times over! Good video Graham, the next video should be why the G0v will never fix itself? PS: Trumps +$4.6T over 10 yrs is small about 1/3rd compared to Biden's $7.4T in 4 years. Both are unsustainable as the WRC and a lot of countries are taking matters into their own hands. BUY HARD ASSETS!! Gold, Silver, Industrial precious metals and Real Estate...what others are you using for the transfer?
INFLATION SOLUTION
If the government pays 2.5% interest while inflation runs at 6%, the real value of the debt shrinks by 3.5% per year. The debt technically remains, but its burden becomes smaller. This is how governments can quietly reduce debt without officially defaulting or admitting that savers are absorbing the cost.
Trump himself is responsible for a 1/3rd of it. Lol
FINANCIAL REPRESSION
The U.S. used this playbook after World II. Debt reached roughly 106% of GDP, and instead of paying it down through responsible budgeting, the government kept interest rates artificially low while inflation ran higher. Treasury bills were pegged at 0.375%, long-term bonds at 2.5%, and inflation at times reached double digits. Savers and bondholders earned negative real returns, while the national debt was inflated away over time.
So the rich buy up all the assets and let themselves get richer while we get poorer from inflation yay what a great future for my children.
THE FED STRATEGY
Kevin Warshâs plan is centered on shrinking the Fedâs balance sheet. Warsh argues that the Fedâs massive balance sheet has distorted markets, made investors nervous about future money printing, and created an inflation risk premium. His theory is that a smaller, more disciplined Fed could rebuild trust and eventually lower long-term rates naturally.
What would you recommend putting money into? silver? gold? voo?
USING AI
Warsh also appears to be betting that AI could increase economic growth without creating as much inflation. If productivity rises fast enough, the economy could grow while inflation stays controlled, making it easier to reduce the debt burden over time. But this only works if investors trust the Fed, buy the bonds the Fed no longer wants, and believe inflation will stay under control. If that confidence breaks, interest rates could spike and the debt problem could get worse.
Trump and the Republicans are running this government. So put the blame where it belongs.
MOVING INFLATION DATA
The video also argues that inflation data can be shaped by methodology changes. CPI uses substitution, meaning if steak gets too expensive and people buy chicken instead, the inflation calculation can show a lower cost increase. Hedonic adjustments also reduce measured inflation when products become more expensive but are considered higher quality. These methods are not necessarily fake, but they can make official inflation feel lower than what people experience in real life.
Ibonds for cash fund
THE FUTURE
The most likely outcome is a combination of higher taxes, more money printing, and low real interest rates. Taxes may rise through higher brackets, more Social Security taxes, higher capital gains taxes, or fewer loopholes. At the same time, the government may quietly keep rates below inflation, allowing debt to shrink in real terms while savers lose purchasing power.
"secretly" paying for it ??? Government runs on taxes, we've always flipped the bill no matter who what when
HOW TO PREPARE
The biggest risk is sitting on too much cash and assuming it will hold its value over the next decade. That does not mean panic buying or making an extreme bet, but it does mean understanding that inflation quietly transfers wealth from savers to borrowers. The better approach is to stay invested, stay diversified, avoid holding too much idle cash, and own assets that have historically had a better chance of keeping up with inflation, including stocks, real estate, commodities, gold, or Bitcoin.
most of the debt was created under Trump. I don't want to hear right wingers hand wring about the debt anymore
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"Secretly"... ok. How about recover/stop all fraud (or as much as you can find)... boom... 1.2 trillion off debt each year
More User Perspectives
Every graham video is the same lol
No hate, itâs good stuff, but the advice is always the same
At the end of the day though: WE set the interest rates, that is to say: The Fed does, and it always has buyers. The base rates of our national debt were not arrived at through bidding, they are set by fiat. The simple reason that the market will buy our debt is because the only other alternative is holding it in reserves, which pay zero interest.
@TheRepublicOfUngeriaSo inflation is actually a good new for me to sell some of my car collection (higher value) and use it to pay off my fixed mortgage for my mansion?
@wanleafYeah the only thing I've told my friends while watching this play out is to acquire and hold hard assets. My friend rents a 4 tenant unit in the city he used to work in, he's thinking about selling, I tell him constantly not to and to hurry up and buy a house. The govt is actively hostile to the economy right now and AI is not going to save us with cyclical flow of trillions between nvidia google, etc. The gov't is going to inflate away the debt, gold is going to pass 10k an ounce in the next decade and home prices will be starting in the mid 6 figures at a minimum.
Beyond hard assets, I'd recommend deep value stocks that when inflation hits will still have strong balance sheets. Costco, TJX, BRK.A/Brk.B if you don't want to research yourself.
đInflation isn't an accident; it's a structural necessity to melt away national debt. The savers are silently paying the bill for the borrowers. That's why the 1% use debt as a weapon to acquire assets, while the rest use it to consume.đ
@Stick_CapitalImagine explaining to someone 20 years ago that the U.S. would owe nearly $40 trillion and the solution might be to slowly inflate it away. What do you think happens over the next decade?
@MarketRidgeWe donât need to low the defense spending, we need to remove the spending on social programs that havenât worked and continue to suckle at the tit of the American people for decades.
@Jin16837Why don't we first start with taxing the over 50% of Americans who pay ZERO federal income tax right now?
@bo3iiiThe federal reserve is not the United States, bro. The federal reserve is a puppet tool of the city of London globalists
@KingMjs_dayYou can increase immigration and increase tax base and revenue without tax hike. Increase immigration will also increase growth in the economy.
@ofrae1971"The scary part isn't the size of the debt anymore. It's how many people have stopped being shocked by it."
@the_stephen_filesIf the dollar is the worldâs reserve currency, how is the huge debt affecting other countriesâ economies?
@scottweisel3640If you can invest, invest in stocks. They will demand a good return.
@markolmstead4709They gonna use one of those debt forgiveness plans?
@XX-PrinLer-XXWell we tried to cut fraud and waste... But the democrats and the media lost their fucking minds over it.
@LawsonRWe have been fucked for a long time. Way before Trump Biden or Obama if we're being honest
@hilairelaplume1616Bro its only been getting worse, what you talking about?
@ZooxnadoTheHumanPotatoNo matter how you slice it, the American people pay the bills. Of course we do, who else would do it? Raise taxes/cut spending we pay, lower interest and inflate the dollar, we pay. There was never/is never anyone else who would pay. People want free stuff from the government, politicians have to get rich, and we have to have wars. It's just the way it is.
@chapter4travelsWe need an amendment that simply says âthe federal government cannot take out any debt, except in times of war as declared by congressâ short simple and effective.
@nathanialblock8480I was with you until you send tax raise and spending cuts.....there is ample...and I mean AMPLE evidence that raising taxes does NOT increase revenue....what it increases is...ways people who pay taxes....hide their income. The ONLY options is to just cut spending.
@MarkJ-k5gWoohooo were all going to be millionaires! Sure a loaf of bread will cost $100,000 but who cares!
@flanksfactsThis why Iâm not paying off my low interest mortgage.
@whatsyourexcuse927"Secret" ?
No, we the people expect to get screwed.
So have you read ITRâs Prosperity in the Age of Decline? You addressed some of the components they mention but you havenât addressed expanding entitlements or the global demographics of agingâŚ..
@johnbiagioniso i should keep buying pokemon cards since my cards went up 51% in value over last year? lol
@BearPawwzwhat kind of investments safely stay ahead of inflation?
@schwangtv7448We could cut 1.5T in waste and fraud and money laundering, the latter there is the real reason that it will not happen. It's being laundered back to politicians.
@douglascavin21401:11 adjusted for inflation?
@joshuapatrick8999Wow, thanks Obama.
@captainpicard6566This explains so much
@tclmac1Your ten dollar bill sure experienced tremendous inflation...
@tclmac1Fed is creating the problem. Seems like an easy axe
@ASloWConnectioNGraham! I have enjoyed your videos for years but there has been one thing I've always been curious about. Do you have a musical background? Some times in your videos your hand movements look like you're conducting in front a band. It made me think you might have been a musician.
@JacobHusbandThe plan is to artificially lower interest rates, drive up inflation and make the average joe eat it. Any way you look at it, we pay.
@miteeoakThat the government solution to everything just make the people pay for it đ˘ even tho i work 2 jobs and am hardly scraping by
@Guestroom-v8dWhy do we need the fed? Why donât we have a gold or silver backed system? Only the treasury should be able to print money. Private companies and banks shouldnât be able to.
@LckhhhjjI hope my $10 bill doesn't look like that anytime soon.
@kstr89When the populace realizes that entitlement programs like social security are outdated and national defense spending is too high, spending will ease. Then tackle the issue of money printing while taxing slightly higher. This is an easy fix.
@waterboy5990