Here’s Why Speaker Johnson and Trump’s Big Beautiful Bill Is a Big Bad Idea
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All right. I a lot of questions over the past several days in regards to the bond market. What does this mean, Chris? Why all of sudden is Trump concerned about this? Talking about the Yips. The Yips, yeah. The bond market got the Yips. Well, you see this thing that they’re trying to pass this big, beautiful bill, right? And they got to compromise. I got Mike Johnson.
Senate. And again, you got to give credit where credit is due. Mike Johnson got a lot of the the fiscal conservatives to go along with this. We have to this year, we have to refinance 10 trillion with a T. Ten trillion dollars in debt. You see, people
We don’t pay off our debt. We’re $36 trillion in debt and we continue to run deficits. We continue to run deficits. And again, we have the world’s global reserve currency, correct? With the world’s global reserve currency, we’re allowed to do this. People continue to buy our bonds.
Other countries can’t do this, can’t do what we’re capable of doing. We’re in a position that is envied. Let’s just leave it at that. But anyway, neither here nor there. Most of this debt was, again, was much lower rates at the time. You’re talking the amount of money that we borrowed, this was back during the COVID years. Really, really low interest rates.
We were dumb and we didn’t refinance that debt at a much longer term. So we have to roll it over. See, this is what our country does. Okay, we don’t pay it off. It’s kind of like you use one credit card to pay off another credit card. So let’s pretend that credit card A that we use during COVID and put $10 trillion on that credit card at let’s say 3%.
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2.5 % to 3%. Now we have to pay it off with this credit card at 4.5%. Who knows, maybe 5%. What does that mean? Well, that means we’re paying a lot more in interest. We’re paying a lot more in interest and our debt to GDP ratio gets completely thrown out of whack. It could take this big
beautiful bill and you could basically flush it.
You’re need more money, more money is going to be allocated to interest payments, essentially flushing money down the toilet. That’s where we’re at right now. Donald Trump got the yips. He got the yips because he knows he’s in a real tight position right now. We need these interest rates to come down. And I know, I know he was jaw boning Jay Powell about lowering rates.
Ain’t gonna matter!
Okay, it’s not going to matter. He can lower rates, but again, the bond market’s going to do what the bond market is going to do. And if people start unloading our debt, lack of confidence, guess what? Those interest rates go up. Then what?
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Then what? We get ourselves into an even bigger hole. again, I don’t know. I don’t think that the fiscal conservatives are going to sign off us. But again, who knows? Who knows? Maybe they’ll punt on this again and just put our nation further and further and further into debt, putting that on our kids and our grandkids bill, which quite frankly is child abuse, if you ask me. This is the predicament that they put themselves in at this point in time. And the reality is the world knows this.
The world knows this. We need to come to some sort of resolution sooner rather than later. Again, think about this. Think about the interest payments on $10 trillion in debt. Watchdogonwallstreet.com.
