McAlvany Weekly Commentary Can We Really Outgrow Our Debt
May 28, 2025
Explore the rising bond yields and the shaky ground of the U.S. debt situation. Delve into personal anecdotes that weave military service with fiscal responsibility. Examine how government spending is pushing national deficits to alarming heights. Discover the contrasting roles of gold and Bitcoin as safe haven investments amid market volatility. Don't miss insights into the skepticism surrounding central banks and the urgent need to reassess economic strategies in a world of increasing inflation.
AI Snips
Chapters
Transcript
Episode notes
Reconnecting Over Aged Wines
- David McElveney shared a special weekend reconnecting with a long-time colleague and friends over fine Caymus wines from 1992 and 2022.
- The event refreshed many memories, illustrating the value of longstanding relationships and shared history.
Volatility Beyond Tariffs
- Market volatility can't be explained solely by Trump's tariffs; deeper issues like currency trends and rising bond yields persist.
- The US deficit to GDP reaching 6.7% outside wartime signals real fiscal risk beyond tariff chatter.
Spending Bill Worsens Deficits
- The new spending bill raises annual deficits substantially, adding trillions to US debt amid questionable fiscal discipline.
- Without recession, deficit grows unsustainably; with recession, debt could skyrocket into the teens or low 20 percent of GDP.