Trumponomics Scott Bessent’s Uphill Battle Against America’s Debt
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Feb 12, 2025 
Bill Dudley, former president of the New York Federal Reserve and Bloomberg columnist, teams up with Anna Wong, Chief US economist at Bloomberg, to tackle America's mounting debt crisis. They discuss Treasury Secretary's deficit reduction plans clashing with economic realities. The duo dives into the complexities of fiscal sustainability and the impact of rising interest costs. With insights on technology’s role in economic growth and the delicate balance of regulation, they highlight the urgent need for innovative policy actions to navigate the fiscal challenges ahead.
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US Debt Challenge
- The US government faces a considerable debt challenge, despite President Trump's ambitious spending plans.
- These plans include acquiring Greenland, investing in AI, and establishing a sovereign wealth fund.
Bessent's 3-3 Plan
- Bessent's 3-3 goal involves 3% growth, 3% deficit, and 3 million more oil barrels daily.
- Bloomberg Economics' model suggests this could lower the debt-to-GDP ratio from 130% to 100%.
Debt Service Costs
- Even with spending cuts, the US debt service cost remains substantial.
- Higher inflation could reduce the debt burden, but it's politically unpopular.