US Debt Crisis Worsens After Trump's Bill Passes

The U.S. debt crisis is just getting worse, and honestly, I don't know what you want to call it, greed, corruption, mismanagement, call it whatever you want. But as I've covered in my Great Meltup series, the government's debt crisis and all the money printing will cause the U.S. dollar to lose its reserve currency status. So I just want to be very clear about this. People will continue to use the U.S. dollar for transactions. However, it's not going to be the reserve asset of the world. And de-dollarization, it's a process. It's not an event. In today's video, we're focusing on President Trump's one big beautiful bill, which has now been signed into law. So unfortunately, this bill is going to make the debt crisis even worse. And rather than trying to solve the problem, basically the politicians are adding fuel to the fire, and I want to show you. Now, I just want to start with this. I know that some people are very happy about certain items within this bill. No tax on tips, no tax on overtime, among other things. And if you qualify to take advantage of those things, then I'm very happy for you. However, you have to realize that overall, this is just going to make the situation worse. It's like dropping quarters to pick up pennies. So let me explain. The best way I can put it is just think about the last stimulus package. Was a $1,200 stimulus check worth it in exchange for how much the cost of housing, food, insurance, how everything just skyrocketed up? And I would say, well, it's just my opinion. I would say no. We got the crumbs and we got stuck with the cost of living inflation. And the uber wealthy people, they got the whole pie and they benefited from financial asset inflation. Now, this one big beautiful bill is just more of the same thing. So the Congressional Budget Office, the CBO, says that this one big beautiful bill is going to add $3.4 trillion to the deficit over the next 10 years, which I've outlined in red. Now, I want to tell you this. If you're thinking, OK, $3.4 trillion added to the deficit over the next 10 years, that's going to break down to $340 billion more deficit per year, which is bad. But that's not horrible, relatively speaking. But the thing is that this deficit, it's front loaded. So look at next year, 2026. This bill is expected to add $500 billion to our deficit next year. That is huge. And take a look at 2027. It's going to add over $600 billion to our deficit that year. And it's not going to be much better in 2028. Now, I want to show you this video clip of Senator Rand Paul, who's a Republican, speaking out against this one big beautiful bill. So please take a look. So, you know, the big not so beautiful bill is passed now. One thing that's for certain is that next year, the deficit will be bigger than this year. The bill includes over $500 billion in new spending. And at the end, to get the vote of the Alaska senator, billions and billions and billions more were added. At least $50 billion was added for hospital fund in the end. We don't have any of that money. All of it's borrowed. All of that spending will have to be borrowed. And this bill will lead to a much greater deficit over time. And I don't believe it's seriously responsible. Now, I want to show you this. The federal government is now in debt for $37 trillion. And this doesn't even include the unfunded liabilities. OK, so here's what's going to happen this year. The U.S. government's going to collect about $5 trillion in taxes and the U.S. government's going to spend about $7 trillion. Which means that the government's going to borrow the $2 trillion difference. In other words, the government's going to go deeper into debt by $2 trillion this year. And now with the passage of this bill, the situation is just going to get worse next year. And as the government accumulates more debt, then the government's going to have to pay more in interest. And that's going to mean more of our tax dollars are going to be spent on interest rather than other productive things. Education, health care, etc. So those orange segments, they show how much more interest that we're going to be paying each year because of the passage of this bill. So it may not seem like a huge impact, but you have to remember that this is just from a single bill. I mean, what else is the government going to have to borrow money for in the future? If there's a recession, then we're going to have to borrow money to spend on stimulus. If there's financial problems, then we're going to have to spend money on bailouts. If there's a war, that costs money too. Now, to be fair, I want to show you this. President Trump and the White House are saying that this one big beautiful bill will decrease the deficit, decrease the national debt, and will unleash economic growth. I'm not convinced, but that's just my opinion, and this is their opinion. But then this begs the question, if this bill is going to decrease the deficit and national debt, then why does this one big beautiful bill need to raise the debt ceiling by $5 trillion? I would say that just common sense and realistically speaking, it's because everybody knows that this bill is not going to decrease the deficit or the national debt. Now, I know that people are going to say that Trump's tariffs are bringing in a lot of money. So I'm showing you this to give you the full picture, and it is true. Trump's tariffs are bringing in more money, as you can clearly see. So this is a monthly chart of tariff revenue for the U.S. government, and it has spiked up. So for the month of June, the U.S. government collected $28 billion in tariff revenue. And I agree, that is a lot. At that rate, it's $336 billion a year. But you have to remember that the U.S. government is going to spend $7 trillion this year. So $336 billion of tariff revenue, and if that happens, that is only 4.8% of what the government spends. And you have to remember that the deficit this year is going to be $2 trillion. And this bill is expected to increase the deficit by $500 billion next year, and that's according to the CBO. And again, to give you the full picture, the big money-saving promises of Doge, I mean, that's clearly debt. So this is from the official Doge website. This is on the U.S. government's website. So Doge claims to have saved $190 billion. But you have to keep in mind that this is the estimated savings over the course of the next 10 years, because it includes long-term contracts and leases. So this is not the savings amount for 2025. So essentially, if you take their word for how much they've saved us, which has already been proven to be incorrect, they have saved $19 billion for us this year. So $19 billion, that's what the federal government spends in 24 hours. Like literally, that's $7 trillion divided by 365 days. And the real numbers speak for themselves. So for fiscal year 2025, which is the light purple line, the federal government has already overspent by $1.36 trillion up until May. So that is a bigger deficit than fiscal year 2024, when it was at $1.2 trillion by May. So yes, the deficit in 2025 is worse this year compared to last year. So listen, it's my expectation that this big, beautiful bill is just going to make the fiscal situation worse. More borrowing, more debt, more money printing, and further loss of confidence in the U.S. dollar. And this is just going to accelerate the de-dollarization process, which is the world walking away from the U.S. dollar. And just so you know, everything I'm saying is right in front of us. This isn't a conspiracy theory. It's not imagination running wild. The dollar has been weakening, and it's had a terrible 2025, the worst year this year in the past 50 years. Central banks around the world are also loading up on gold, and they're using fewer dollars as a percentage of their reserves. Okay, so that's your latest update on the fiscal situation. And please subscribe because I'm going to be keeping you up to date on this whole de-dollarization process and just the shift to the new monetary system, because this is wild. Everything's going to change. Of course, it's going to be disruptive. Thank you so much. Please subscribe, and I wish you a very nice day. Take care.