Feb 27, 2021 Guest(s): Michael Gentile strategic investor
The U.S. government is now so heavily indebted, that if interest rates continue to climb up, interest expenses alone could bankrupt the Treasury, said Michael Gentile, strategic investor and board member on several gold mining companies.
"If you take the $30 trillion of debt that [the U.S. government] has now, assuming rates go to 5%, which is not a crazy number historically on a 100 year perspective, that would be $1.5 trillion of interest expense, which would be 50% of their revenues, up from 10% of their revenues. So quite simply, they'd be completely insolvent at that level of interest rates," Gentile said, adding that the same apples to the other G7 countries.