00:00It's Benzinga bringing Wall Street to Main Street.
00:03Economist Peter Schiff warned that the U.S. national debt topping $39,835 trillion
00:08is creating a dilemma for the Federal Reserve as it weighs inflation against rising borrowing
00:13costs. In a post on Exxon Saturday, Schiff said the larger the debt grows, the harder it becomes
00:19for the Fed to raise interest rates, even as higher rates become more important to fight
00:23inflation. He argued the debt is pushing the Fed to create inflation to finance it and ended his
00:29warning by asking investors, got gold. Former U.S. Ambassador Nikki Haley also warned that the debt
00:35is nearing $40 trillion, while Ray Dalio cited government spending of $7 trillion against
00:41roughly $5 trillion in revenue. Publicly held federal debt exceeded 100% of U.S. GDP, reaching its highest
00:48level since 1946. Experts blamed decades of fiscal inaction and warned that higher debt servicing
00:54costs could put more pressure on government finances.
00:57For all things money, visit Benzinga.com.
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