U.S. debt keeps ballooning—what should everyday investors really be worried about? High interest rates aren’t just a one-time hit for heavily indebted countries; they create a compounding effect. Let’s say a government owes $100. Previously, the average financing cost was 2%, so annual interest was $2. Now, as old debt matures and gets refinanced at 4%, the interest jumps to $4. So, what happens to the extra $2? The government can raise taxes, cut spending, or simply borrow more money. In the real world, the third option is usually chosen: Debt increases → Interest payments increase → Fiscal deficit grows → More bonds issued → Markets demand higher term premiums → Interest rates keep rising. The U.S. is already seeing this play out, and it’s becoming the biggest headache for the Treasury and the Fed: The larger the debt, the more policy options seem available, but in reality, the fewer paths remain. Ultimately, fiscal policy boils down to two outcomes: Either U.S. residents bear the cost of the debt, or global holders of dollars and dollar-denominated assets foot the bill. Let’s be honest—getting the government to tighten its belt is probably harder than convincing the average person to hold onto Bitcoin long-term! So, when it comes to investing now, just stick to three principles: 1️⃣ Be cautious with long-term fixed-income assets. Short-term debt > long-term debt. If there isn’t enough risk compensation, I personally wouldn’t be interested in this trade. 2️⃣ Continue allocating to gold, Bitcoin, and high-quality stocks with pricing power—they align with long-term logic. 3️⃣ What I personally think is the most important: Avoid leverage. In an era of high fiscal leverage, it’s especially tempting for individuals to follow suit and take on more leverage. Many people thought this way during Japan’s real estate bubble, before the 2008 U.S. housing crisis, and even in 2021 when crypto investors borrowed stablecoins to increase their positions. The more daring governments get with leverage, the more cautious individuals should be about it. One sentence: Over the next decade, all you need to do is ensure you hold some gold, Bitcoin:native, and high-quality productive assets long-term, while controlling leverage and avoiding excessive exposure to long-term nominal debt. That’s enough. As for the rest? Let them keep printing!