Friedberg states the US has $33 trillion national debt and a proposed $7 trillion budget next year.
“We are proposing the federal administration is proposing a $7,000,000,000,000 budget next year. We have $33,000,000,000,000 of national debt.”
Friedberg calculates refinancing half of U.S. debt at higher rates adds $300 billion in annual interest payments.
“And when that happens, you know, 2% increase in interest on $15,000,000,000,000 that's another $300,000,000,000 of interest payments a year.”
Friedberg warns the US is already paying a trillion dollars annually just in interest on federal debt.
“And this year, we're already paying a trillion dollars just in interest on the debt that the federal government owes to its bondholders, to the people that own treasuries.”
Friedberg calculates that 5% interest rates would add $650 billion yearly, bringing total interest expense near $2 trillion.
“But if rates climb closer to 5%, as I mentioned in the past, just using the current debt levels, it adds another $650,000,000,000 a year of interest expense, which takes interest expense almost up to 2,000,000,000,000 a year just paying the interest on the past debt.”
Friedberg states US has $40 trillion debt, $2 trillion deficit, with $1 trillion just in interest payments.
“We have $40,000,000,000,000 of debt and we're gonna have a $2,000,000,000,000 deficit this year. A trillion dollars of that is just interest on the existing debt. That number is getting bigger and bigger every year.”
Friedberg states California faces 250 billion to 1 trillion dollars in unpaid retirement obligations making it functionally bankrupt.
“And I'm talking about somewhere between 250,000,000,000 and $1,000,000,000,000. California is bankrupt. That is a major Right. Fact that is completely ignored by”
Friedberg states California cannot pay retirement obligations of $250 billion to $1 trillion without legal restructuring.
“there's no way that California can make enough revenue to pay the retirement obligations that they've made to existing employees and past employees, and you're not legally allowed to restructure those employment retirement obligations.”
Friedberg describes economic crisis with college graduates facing debt, unaffordable healthcare, and high grocery costs.
“Kids are graduating college. They got hundreds of thousands of dollars in student loan debt. No one can afford to go to the doctor. Grocery bills are too high.”
Friedberg claims 63 percent of Americans have negative equity with more debt than assets and no economic mobility.
“They have more debt than they have assets and everything's getting more expensive and no one's moving up the economic ladder. There's no mobility anymore.”
Friedberg states each 1% interest rate increase costs US government 1.25% of GDP annually in interest.
“For every 1% change in the interest rate, the US government has to pay 1.25% of GDP in excess interest each year.”