Treasury Secretary Scott Bessent said the U.S. can “grow” its way out of the $40 trillion national debt That’s not how this debt-based system works. The US is already running a $1.9 trillion deficit, equal to 5.8% of GDP, while the economy is growing. Debt held by the public is already 101% of GDP, and interest alone costs roughly $1 trillion a year. Even worse, today’s deficit spending is already supporting economic growth. Remove the borrowing and part of that “growth” disappears with it. AI may increase real production, but if it lowers prices, replaces workers and compresses wages, nominal tax revenues suffer while the debt remains fixed in dollars. The economy can become more productive while the debt becomes harder to service. They won’t print because AI fails. They’ll print because a deflationary AI boom is incompatible with an inflation-dependent debt system. Buy Bitcoin.
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