Part 2/9:
As the conversation unfolds, the alarming state of U.S. debt takes center stage. Booth points out that the new administration, under President Trump, may prioritize extending the 2017 tax cuts, which could potentially add approximately $500 billion to the deficit immediately and an estimated $5 trillion over the next decade. This sets the stage for an essential discussion: can the U.S. continue to accumulate debt indefinitely?
Booth expresses skepticism, arguing that the belief that the U.S. can simply rest on its status as the world's reserve currency is misguided. The expectation is that some fiscal discipline must emerge, otherwise, the danger of unchecked debt accumulation could have far-reaching consequences.