ilmscore | US Debt Crisis — Trump’s New Plan to Fix It with Crypto & Gold

US Debt Crisis — Trump’s New Plan to Fix It with Crypto & Gold

Published: 2025-08-29
Status: Available | Analyzed

Predictions from this Video

Total: 10
Correct: 5
Incorrect: 4
Pending: 1
Unrated: 0
Prediction
Topic
Status
The US government will need to offer interest rates higher than 4% on its $11 trillion in treasury auctions if demand is insufficient, potentially reaching 5% or 6%.
"So, the government's going to auction off 11 trillion of US treasuries, and they're going to hope that there's going to be enough people to buy them up and an interest rate of around 4%. But if there aren't enough people willing to lend the government 11 trillion at a 4% interest rate, then the US government's going to have to offer a higher interest rate to attract more lenders, maybe 4.25% or 4.5% or even 5% or even 6%."
US Treasury Yields
Correct
A 1% increase in interest rates on the US's $37 trillion debt would result in an additional $370 billion in annual interest expenses.
"So, on $37 trillion of debt, if the government needs to pay a higher interest rate by just 1%, then that would be $370 billion more a year in interest expense."
US Government Debt
Correct
Elon Musk's goal was to reduce US government spending by $2 trillion annually, out of a total annual spending of approximately $7 trillion.
"Elon Musk aimed to reduce government spending by $2 trillion a year, which I mean that would have been an enormous feat considering that the government spends about $7 trillion a year."
US Government Spending
Incorrect
US government overspending has increased in the current year compared to the previous year, and significant spending cuts of $1 trillion or $2 trillion have not occurred.
"So, the government didn't cut expenses by 2 trillion nor by 1 trillion. The government's overspending has gotten worse this year compared to last year."
US Government Spending
Correct
The Genius Act mandates that stable coins must be backed by US dollars or treasury bills.
"So, the Genius Act requires each stable coin to be backed by US dollars or short-term treasuries, which are treasury bills."
US Treasury Bills
Correct
Increased demand for Treasury bills is predicted to lower their interest rates, allowing the government to borrow at a cheaper cost.
"And if there's more demand for Treasury bills, then it's going to keep interest rates on T bills low. And that the government would be able to borrow money at a cheaper rate."
US Treasury Bills
Correct
There is speculation that President Trump plans to issue US Treasury bonds backed by gold, distinct from a gold-backed currency system.
"So, word on the streets is that President Trump's going to issue gold back treasuries. So please don't make the mistake we're not talking about a goldbacked system. It's not, you know, the dollar being backed by gold. So there's an argument that President Trump may issue US Treasury bonds that are backed by gold."
Gold-Backed Treasuries
Incorrect
If President Trump revalues the US's gold reserves to market or higher prices, the Federal Reserve will be obligated to print and transfer the difference to the US Treasury.
"So, if Trump revalues gold to market value or even a higher price, which he can, then the Federal Reserve is required to print money the difference and then give it to the US Treasury."
US Gold Reserves
Incorrect
Revaluing gold to $15,000 per troy ounce is suggested as a logical step that would provide the US government with approximately $4 trillion.
"So, word on the streets is that it would be most logical to revalue gold at $15,000 a troy ounce. So, that would give the government $4 trillion just free and clear."
US Gold Reserves
Incorrect
The speaker believes that President Trump's initiatives involving gold and cryptocurrency are not actual solutions to the US debt crisis, but rather are intended to delay the inevitable due to the government's overspending problem.
"So, President Trump's plan, this these whole ideas of gold and crypto, they're not solutions to the problem. The problem is that the federal government just spends too much money. They have an overspending problem. So crypto, Bitcoin, how the government's going to try to use them, it's just to stall time. It's just to buy time and keep the show going."
US Economic Policy
Pending