Rebel Capitalist News Here's Why The US DEBT Is Going To $100 Trillion (Soon)
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Jul 24, 2025 The podcast dives into the alarming possibility of U.S. debt reaching $100 trillion, examining both historical trends and the impact of current policies. It discusses the implications for interest rates and the overall economy. Additionally, the relationship between the banking system and national debt is explored, debunking misconceptions about macroeconomics. Understanding how banks react to treasury prices is crucial, as it significantly affects economic narratives and stability.
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US Debt Could Reach $100 Trillion
- US debt could triple to $100 trillion soon due to massive deficits and Fed bond purchases.
- Banks create money to absorb this debt, making such high debt levels possible.
Banks Create Most Money Supply
- The banking system creates most money, not the Fed printing or base money.
- Banks buying treasuries or making loans both create new deposits and money supply.
Bank Money Creation Explains Debt Absorption
- Banks create deposit liabilities when buying treasuries, using created money to absorb debt supply.
- This process explains how debt supply tripled despite limited base money.