Know Your Risk Podcast Are We Headed for a Sovereign Debt Crisis?
7 snips
May 29, 2025 The podcast dives into the recent fluctuations in financial markets, highlighting events like NVIDIA's performance and the trade war's impact. It discusses the complexities of U.S. tariff legislation and the expanding powers of the executive branch, raising concerns about democratic accountability. A cooling housing market is explored, with emphasis on the effects of rising interest rates and recent government budget proposals amidst increasing national debt. The conversation also covers trends in precious metals and the massive European investment in U.S. equities, reminding listeners about the risks of a trade war.
AI Snips
Chapters
Transcript
Episode notes
Escalation of Executive Orders
- The use of executive orders for tariff powers has escalated beyond its original intent, creating a gray area in presidential powers. - This gradual increase contributes to an "imperial presidency," undermining the legislative process designed to be difficult.
Debt Awareness Crisis in Congress
- The US faces an escalating debt issue with interest expenses soaring unfathomably. - Congress often lacks awareness or willingness to tackle these budget challenges, worsening the fiscal problem.
Fiscal Cuts Needed to Control Deficit
- To reduce the deficit to 3% of GDP, nearly $900 billion in spending cuts are needed, excluding defense and entitlements. - Without drastic discretionary spending cuts, reaching a sustainable fiscal path remains impossible.