Will the US EVER Pay Off Its DEBT???

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The U.S. can’t repay its $36 trillion of debt.

Here’s what will happen instead:

There are only 3 possible outcomes to addressing the debt problem:

1 - Default

2 - Print the debt away

3 - Technological & deflationary boom

Let’s look at all 3 👇

1 - Default

If the U.S. decides not to pay back its debt, the consequences would be massive.

The entire system is built on trust…and defaulting would destroy all trust in the U.S.

The dollar would collapse, credit markets would freeze, and financial panic would ensue.

It would be a Great Depression 2.0-style event.

2 - Print

If the U.S. printed its debt away, we’d experience extreme inflation.

Possibly Weimar Republic or Zimbabwe levels of inflation.

Basic necessities would be unaffordable. Not fun.

3 - Technological & deflationary boom

New technology could theoretically boost productivity to the point where the economy outgrows its debt.

Tech is deflationary because it increases productivity and reduces costs over time.

Many believe that AI, cryptocurrency, and humanoid robots are the deflating counterbalance we need to combat our debt.

So what exactly will happen?

Likely a combination of short to medium-term money printing.

Followed by a long-term solution of technological innovation.

The U.S. dollar likely won’t spiral into irrelevancy like many believe.

The British pound was once the reserve currency. Today, it’s still the 5th most economically relevant currency on earth.

The dollar could experience a similar fate…while tech digs us out of this hole we’re in.

But no matter what happens, one thing is for certain:

The dollar is the measuring stick we use to value asset prices.

And as that measuring stick erodes, asset prices will nominally rise.

So buy assets, or get left behind.

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