The Debt Bomb is going to explode under Trump

Peter Schiff -- No President Will Escape Fed's Debt Bomb








Bennett we don't like national debt at 0:02 19 trillion 965 billion so 20 trillion 0:07 around the corner we just 20,000 0:09 yesterday and the dow jones or whatever 0:11 day before the jones industrial average 0:13 so my question to you is simple 0:16 okay is there any way that any president 0:19 is going to avoid a debt bomb know that 0:24 the dead father's gonna explode but 0:26 we've been doing with the debt bonds and 0:28 diffuse it is the Federal Reserve is 0:30 kept interest rates practically a zero 0:32 so at least we can afford to service the 0:35 debt repaying it is completely 0:37 impossible but at least we conservative 0:40 when interest rates are at rock bottom 0:41 but that's already changing interest 0:43 rates are going up inflation is going up 0:46 and so creditors are going to demand a 0:48 higher premium to hold our paper and we 0:50 are headed off the edge of a clip and I 0:53 think that the Fed is going to try I to 0:56 inflate its way out of this problem but 0:57 it's going to inflate its way into a 0:59 bigger one 1:00 all right now let's take things one step 1:02 at a time okay 1:04 there was a time where infrastructure 1:05 under previous administrations was a 1:08 tough one 1:09 ok so the republicans are they going to 1:12 give the new president an issue is there 1:16 a difference between infrastructure 1:18 spending with this administration versus 1:20 others or is it all pretty much the same 1:22 in your mind 1:24 well it's the same and plus 1:26 infrastructure spending is not going to 1:28 help the economy you don't help the 1:29 economy by spending money to the extent 1:32 that we need to repair our 1:33 infrastructure that's already have a 1:35 variant listen I agree with you on a lot 1:37 of things Peter but i just put a roof on 1:39 my house okay and I don't look at that 1:42 is you know unnecessary infrastructure 1:44 spending it was leaking we have a lot of 1:47 quote-unquote right heroes out there but 1:49 even so really it's not stimulus it's 1:52 more like green pears now I'm not saying 1:54 that to get the money is going to be 1:56 easy but sometimes there is a difference 1:58 yeah but it would've been better if your 2:01 roof didn't leak and you didn't have to 2:02 repair it if you could use the money for 2:04 something else 2:05 so the fact that we have infrastructure 2:07 that is in need of repair is a negative 2:10 it is a burden it's this 2:11 sacrifice that we have to spend money 2:13 building up our infrastructure the fact 2:15 that it creates jobs that's not a good 2:17 thing because we're diverting resources 2:19 that we might otherwise have been able 2:21 to use more productively to make 2:23 necessary repairs for infrastructure but 2:25 the other problem is we're broke we 2:27 can't afford to repair our 2:29 infrastructure that is the problem and 2:31 if we're going to divert resources 2:32 towards the building our infrastructure 2:34 what are we not going to do right what 2:37 are Americans going to stop spending 2:38 money on so we can free off the 2:40 resources to make these repairs 2:42 well sometimes Peter don't you have to 2:45 step out of the box a little bit though 2:47 i'll give you an ocean we have trillions 2:49 of dollars overseas that this president 2:51 studies going to allow businesses to 2:53 repatriate you ever hear Build America 2:55 Bonds so why doesn't he say listen you 2:57 can repatriate it but in order to do 3:00 that you have to play this little game 3:02 of bond covenant you have to participate 3:05 in a building America Bonds scenario for 3:08 the covenants give you a bit less 3:09 interest rates and for that you'll be 3:12 allowed to bring this money back at a 3:14 very low or maybe negligible tax rate 3:18 your final common can't we get creative 3:20 is there no answer here 3:22 well I hate to make rope not 3:24 micromanaging and of course you know 3:26 they don't have to bring the money back 3:27 they can leave where it is and pay no 3:29 taxes on it and so if we try to be you 3:32 know too funny about all these 3:34 requirements they don't have to bring 3:35 the money back at all right because they 3:37 got a zero tax rate where they are right 3:38 now but the bottom line is you talked 3:41 about at the beginning all of this debt 3:43 everybody is ignoring this people are 3:45 talking about we're going to get all 3:46 this fiscal stimulus the reason we 3:48 haven't had it before is because we're 3:50 broke and we've been relying on this 3:52 phony monetary stimulus but if we 3:54 actually try to increase already 3:56 enormous annual budget deficit with tax 3:59 cuts in more spending that unfortunately 4:01 the Federal Reserve is gonna go back to 4:02 the well we're going to do more 4:03 quantitative easing and we're going to 4:05 end up destroying the value of our 4:07 current it right now here the dollars 4:09 that a fourteen fifteen you're hot but 4:11 it's a long way to hear Peter I'm gonna 4:13 have to stop here but i am going to 4:14 bring it back in here to see if all 4:16 these clouds are still there thank you 4:18 for taking the time and







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