$40 Trillion in Debt and the Only Exit Is Inflation, The Guy Who Wrote OpenAI's Safety Rules Just Quit, The Situation in France Is Only Getting Worse| Weekly Recap

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Tom Bilyeu (0:30)

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Ryan (1:37)

Speaking of getting dragged into shit, we're in debt. Tell us about it Tom.

Tom Bilyeu (1:40)

God damn. You're $40 trillion in debt. And the real problem, the real reason that this gets crazier by the day is that your interest payments are ultimately going to eat you alive. So you're in a position where if you're trying to make ends meet, if you're trying to survive what's coming, you've got to understand assets. And the reason you have to understand assets is you're living through a change in regimes. The way the world works is fundamentally changing right now. And Trump is saying this stuff out loud. Now he's not leaning into it. And the weird thing is you're having these two conflicting messages from Trump and his top economic advisor, Hassett. And so Trump, when being asked like, hey, a historical way that people get rid of debt, is they inflate it away? Do you plan to do that? And he's like, well, we could, because you can inflate the debt away really fast. And then Hassett, almost at the exact same time, when asked, are you guys just going to inflate the debt away? He's like, absolutely not. Literally, absolutely not. Bitch, which is it? Is it Trump like, yeah, that's going to work? Or no, absolutely not. Drum roll, please. It's fucking we're going to inflate your money away. We're going to make the debt repayable by inflating the living shit out of it. And by the way, you're all going to vote for it day after day after day after day because you want free shit. And so you want to know, this is conspiracy. You want to know why Trump likes Mom Donnie. It isn't just that Mom Donnie knows exactly how to jerk them off. It is that Trump understands I've got to have people voting for more free shit. Now, his base obviously votes for the military free shit. But if he can get New Yorkers voting for stuff that the right thinks is crazy, free shit, just like the left thinks the right votes for crazy free shit, but they both vote for free shit, they are both absolutely driving you into the poor house, unless you own assets, of course. And then they're making you on paper richer and richer by the day. But therein lies the problem. You have two trillion dollars in debt.

You're the world reserve currency. So you have to be in debt.

Talk about another thing that most people don't understand. By being the world reserve currency, and this is exactly why your boy, JD. Manson is saying, maybe we shouldn't be, because then we could be real nationalistic.

I don't know if you love that one, but you can be real nationalistic if you don't have to keep creating debt and exporting it to the rest of the world so that they have access to dollars. You can just be like, fuck you guys. We're going to weaken the shit out of our currency. And we're going to do that so that we can be competitive on the international stage from a trade perspective. And if we do that, now we can have blue collar work as long as the day is long because we can actually manufacture and be competitive internationally. But we're not going to be able to do that as long as we're exporting debt all over the world because now people are just pouring into the dollar and it's keeping the dollar strong. And so it's all this like counterintuitive, super weird shit that leaves you in a position where the strategy is to rack up that debt, maintain your presence as the reserve currency for the world so that you can have the exorbitant privilege of running $2 trillion a year in debt so that you can keep getting elected by doing the easiest thing in the world, which is promise people free things, never having to go into austerity, which is absolutely what we should be doing. And you just keep the gravy train rolling, hopefully until the next guy comes in or, and this is the one bet that everybody's making, that AI is a miracle that helps you grow out of this so that we can do what we did after World War II, which is crank inflation up, financially repress people by keeping interest rates down.