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Thoughtful Money with Adam Taggart

Judy Shelton: It's "Day 1" Of The Reckoning As US' Unsustainable Fiscal Path Runs Out

Mar 9, 2025
Judy Shelton, an economist and senior fellow at the Independent Institute, dives deep into America's fiscal challenges and the urgent need for reform. She shares insights from her time as an economic advisor to Trump, critiques current monetary policies, and discusses the alarming trajectory of government spending. Shelton highlights how Federal Reserve policies perpetuate wealth inequality and explores the potential benefits of a return to a gold standard. The conversation offers a provocative look at how history can inform sustainable economic practices.
01:21:14

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Quick takeaways

  • The U.S. faces a critical moment regarding its unsustainable debt, necessitating urgent reform to prevent severe economic repercussions.
  • The Trump administration's aggressive fiscal policies, including tax cuts and regulatory changes, present both potential economic stability and risks of chaos.

Deep dives

Assessing the U.S. Fiscal Path

The U.S. is at a critical juncture regarding its fiscal health, with an unsustainable debt burden being highlighted. Experts assert that the long-ignored fiscal challenges can no longer be dismissed as distant problems; we are now facing the consequences. The current situation demands urgent action to alter the current trajectory, especially with rising interest rates leading to significant government expenditure on debt servicing. Striking a balance in fiscal policy is essential to avoid drastic economic repercussions.

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