The Debt Spiral Just Started — And the Bond Market Is Breaking

SPEAKER_1 (0:00)

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Tom Bilyeu (0:30)

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Andrei Jikh (1:46)

So the debt spiral just started and the bond market is now breaking. This is happening all over the world, not just in the US.

Tom Bilyeu (1:52)

We have inflation totally in control and we've done a great job. Needless to say, that's bullshit.

SPEAKER_4 (1:58)

Lost of war with Iran hitting Americans hard in the wallet. The numbers driven in large part by soaring fuel costs driven by the Iran War.

Tom Bilyeu (2:07)

That's part of it, but whenever somebody tells you that all the inflation that we're seeing right now is a part of the Iran War, it just isn't true. Remember that inflation has been running hot for years, long before a single shot was fired, before Trump was even elected.

So this is one of those where you're giving the powers that be an excuse that they can take and just be like, well, this is really just the war in Iran. But the reality is, while it is a very real exacerbating factor that we are likely to see continue to be a bigger and bigger problem, it is not how we ended up here. Anybody that's talking about inflation that doesn't talk about $2 trillion in deficit spending every year is lying. Anybody that doesn't talk about the impacts of all the capital getting sucked into AI and therefore forcing the government basically to print more money to cover their own debt is not telling you the full story.

SPEAKER_5 (2:57)

Everything we just described, the fiscal recklessness.

Tom Bilyeu (3:03)

The fiscal recklessness, all eyes on fiscal recklessness.

SPEAKER_5 (3:07)

Monetary recklessness, all that. No other country could have pulled that off.

And it's fun and it's great while it lasts, but it enables you to keep digging and digging and digging into a deeper hole until the consequences come to bear.

Tom Bilyeu (3:25)

Which is exactly what we're doing.

Andrei Jikh (3:27)

Right now the world owes $365 trillion.

Tom Bilyeu (3:32)

Think about how insane that is. $365 trillion in global debt.

Andrei Jikh (3:37)

US owes roughly $40 trillion of that and it's growing by about $82,000 every second.

Tom Bilyeu (3:43)

I think it's $6 billion a day. If somebody can double check me on that. But I think the US adds $6 billion a day to the debt.

Andrei Jikh (3:55)

Just the interest now costs more than $1 trillion a year. And so the obvious question is, well, how is that gonna get paid back? And a couple of days ago, Trump shared his answer with the world.

Tom Bilyeu (4:05)

He told Time Magazine, 7.3 a day?

Which is about 300 million an hour. That is so wild, man. That is so reckless. And as a reminder, fiscal means government spending. So when we say fiscal recklessness, we're talking about the government.

Andrei Jikh (4:21)

Certain levels of inflation will also pay off that debt very rapidly.

Tom Bilyeu (4:25)

It's one of the most unhinged things that he said and absolutely tips his hand to what they plan to do. They're going to inflate your money away.