"The U.S. resolving $40 trillion in debt—the most realistic approach might not be defaulting or suddenly raising taxes. Instead, it’s about making creditors slowly poorer. By the 2025 fiscal year, the U.S. federal government’s net interest payments will reach $970 billion, roughly 19% of total annual fiscal revenue, already surpassing defense spending. In 2026, interest payments are expected to further exceed $1 trillion. This means that for every $5 in tax revenue the U.S. collects, nearly $1 goes straight to paying interest on old debt. Faced with this scale of debt, the tool Washington is most likely to use is called: Financial Repression. The core concept isn’t complicated: Keep inflation and nominal economic growth consistently higher than government borrowing costs, while maintaining stable demand for government bonds through banking regulations, pension systems, and central bank policies. For example, if inflation stays at 4% while the average financing cost of U.S. government bonds is only 3%, the real purchasing power of government debt shrinks every year. The government doesn’t announce a default, and bonds are repaid with principal and interest on time. But the money creditors get back can no longer buy as much as it used to. The U.S. used a similar approach after World War II. In 1946, federal debt held by the public reached 106% of GDP; by 1974, this ratio had dropped to 23%. One key operation was the Federal Reserve capping long-term Treasury yields at around 2.5% before 1951. From 1945 to 1980, real interest rates in developed economies were negative about half the time. Research estimates that the U.S. and U.K. annually “absorbed” debt equivalent to 3%-4% of GDP through negative real interest rates. Today, similar policy conditions are re-emerging: The U.S. is easing leverage capital constraints on major banks, giving them more room to participate in Treasury trading and the repo market. The government needs lower borrowing costs, and political forces are continually pushing for rate cuts. Meanwhile, Washington is banking on productivity growth driven by AI to expand the GDP “denominator.” This is why buying Bitcoin is the best reason—hands down. #Bitcoin #BTC