The billionaire investor warns of the American debt crisis after passing the new Trump bill
Alarm bells are ringing – and they are getting more. Investor billionaire Chamath Palihapitiya It is affected by what a time bomb sees for the American economy: high national debts, the increasing treasury revenues, and the threat of reducing credit, all of which caused a new controversial draft law that was just cleared.
On May 22, 2025, the house passed Great and wonderful billIt is a comprehensive measure that aims to re -ignite economic growth by locking in tax cuts in the Trump era of 2017 and launching a series of pro -growth initiatives. But Palihapitiya sees the problem of giving birth below the surface.
The growth feed by debts or a financial disaster?
Talk to All podcastPalihapitiya did not empty the words. The draft law was criticized as a hasty step at the last minute that trades stability in the long term for the short -term political victory. Instead of focusing on financial discipline, he says, legislators have chosen what he calls the “industrial policy of debt”.
He warned, “The lack of discipline will create a negative group of consequences.”
According to Palihapitiya, the numbers do not lie. The treasury return for 10 years already hovering about 4.5 %, and it climbs quickly. If this trend continues, we may see that it exceeds 5 % by the end of the year. Meanwhile, the return of 30 years on the right path to break 6.25 %, and may reach 6.5 %-the farthest of what most experts consider as sustainable to the American economy.
Vocabulary: Investors are retreating, the risk of reducing credit grows
So what happens if the returns continue to rise? Palihapitiya says the effects are dangerous.
“It will start from the United States, will sell our debts, and you will have things like gold and bitcoin,” explained. “You will have evaluation organizations that add this waterfall by reducing the US classification.”
This is more than just a virtual scenario. A wave of Delverging may lead to the loss of global confidence in American financial stability, especially if higher credit rating agencies begin to issue discounts. Investors may escape safer alternative assets – which pressure the dollar and deepening the spiral of debt.
Eileon Musk weighs: Only explosive growth can save us
Echo, Elon Musk Recently Only the growth of GDP only can avoid national bankruptcy, as the Ministry of Governmental efficiency (DOGE) provides only temporary relief. Musk stressed that the outbreak government spending requires radical productivity gains to save the economy.
Time to work: Can America avoid financial ruin?
With treasury revenues, changing investor feelings, warnings of some of the most severe minds in technology and financing, the United States finds itself at a critical turn.
Palihapitiya’s warning is a clear red sign that the public budget of the world’s largest economy may be transferred to a dangerous area. Whether the lawmakers choose the opposite of the path or the continuation of the current track, the country’s economic future may determine for decades to come.
One thing is clear: the watch is knocking.
