Part 7/13:
The speaker underscores that the nation has been adding roughly 40% of its revenue to debt annually, an unsustainable practice that threatens to destabilize the bond markets. Foreign investors are retreating from U.S. debt due to sanctions, tariffs, inflation, and geopolitical uncertainties, leaving the Federal Reserve as the eventual buyer of last resort. This reliance could lead to significant inflationary pressures, setting the stage for stagflation—a stagnating economy combined with rising inflation.