Billionaire Investor Warns of U.S. Debt Crisis After Trump’s New Bill Passes
The post Billionaire Investor Warns of U.S. Debt Crisis After Trump’s New Bill Passes appeared on BitcoinEthereumNews.com. The alarm bells are ringing – and they’re getting louder. Billionaire investor Chamath Palihapitiya is sounding off about what he sees as a ticking time bomb for the U.S. economy: a soaring national debt, rising Treasury yields, and the threat of a credit downgrade, all triggered by a controversial new bill that just cleared Congress. On May 22, 2025, the House passed The One, Big, Beautiful Bill, a sweeping measure aiming to reignite economic growth by locking in the 2017 Trump-era tax cuts and launching a series of pro-growth initiatives. But Palihapitiya sees trouble brewing beneath the surface. Debt-Fueled Growth or Financial Disaster? Speaking on the All-In Podcast, Palihapitiya didn’t mince words. He criticized the bill as a rushed, last-minute move that trades long-term stability for short-term political wins. Rather than focusing on fiscal discipline, he says, lawmakers opted for what he calls “debt-financed industrial policy.” “That lack of discipline is going to create a negative set of consequences,” he warned. According to Palihapitiya, the numbers don’t lie. The 10-year Treasury yield is already hovering around 4.5%, and it’s climbing fast. If the trend continues, we could see it surpass 5% by year’s end. Meanwhile, the 30-year yield is on track to break 6.25%, maybe even hit 6.5% – well beyond what most experts consider sustainable for the U.S. economy. The Fallout: Investors Pull Back, Credit Downgrade Risk Grows So what happens if yields keep rising? Palihapitiya says the implications are serious. “You’ll de-lever from the United States, you’ll sell U.S. debt, you’ll own things like gold and Bitcoin,” he explained. “You’ll have ratings organizations that add to this cascade by downgrading the United States.” This is more than just a hypothetical scenario. A wave of deleveraging could trigger a loss of global confidence in U.S. financial stability, especially if…
The post Billionaire Investor Warns of U.S. Debt Crisis After Trump’s New Bill Passes appeared on BitcoinEthereumNews.com.
The alarm bells are ringing – and they’re getting louder. Billionaire investor Chamath Palihapitiya is sounding off about what he sees as a ticking time bomb for the U.S. economy: a soaring national debt, rising Treasury yields, and the threat of a credit downgrade, all triggered by a controversial new bill that just cleared Congress. On May 22, 2025, the House passed The One, Big, Beautiful Bill, a sweeping measure aiming to reignite economic growth by locking in the 2017 Trump-era tax cuts and launching a series of pro-growth initiatives. But Palihapitiya sees trouble brewing beneath the surface. Debt-Fueled Growth or Financial Disaster? Speaking on the All-In Podcast, Palihapitiya didn’t mince words. He criticized the bill as a rushed, last-minute move that trades long-term stability for short-term political wins. Rather than focusing on fiscal discipline, he says, lawmakers opted for what he calls “debt-financed industrial policy.” “That lack of discipline is going to create a negative set of consequences,” he warned. According to Palihapitiya, the numbers don’t lie. The 10-year Treasury yield is already hovering around 4.5%, and it’s climbing fast. If the trend continues, we could see it surpass 5% by year’s end. Meanwhile, the 30-year yield is on track to break 6.25%, maybe even hit 6.5% – well beyond what most experts consider sustainable for the U.S. economy. The Fallout: Investors Pull Back, Credit Downgrade Risk Grows So what happens if yields keep rising? Palihapitiya says the implications are serious. “You’ll de-lever from the United States, you’ll sell U.S. debt, you’ll own things like gold and Bitcoin,” he explained. “You’ll have ratings organizations that add to this cascade by downgrading the United States.” This is more than just a hypothetical scenario. A wave of deleveraging could trigger a loss of global confidence in U.S. financial stability, especially if…
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