Exploring US National Debt & Trump Tariffs: Debt-to-GDP Ratio, Interest Payments, & Economic Impact

Join CA Rachana Ranade as she delves into the mysteries of Trump's tariffs, exploring the complex relationship between debt, interest rates, and fiscal deficits in the United States.

Here are 22 clean bullet points summarizing the video:
CA Rachana Ranade welcomes viewers to a shoot-and-release video about Trump's tariffs.
The video is an honest attempt to understand what lies beyond the game of Trump tariffs.
A presentation will be used to explain the topic, with data from official websites such as US Treasury and Federal Reserve.
The US national debt is $36.22 trillion, which is a huge number.
To understand the debt, it's necessary to compare it to GDP (Gross Domestic Product).
The debt-to-GDP ratio for the US is currently 124%, meaning that if the GDP is 100, the debt would be 124.
India's debt-to-GDP ratio should be checked and commented on in the comment box.
Historically, the US debt-to-GDP ratio has fluctuated, with a high point of around 65% in the 1990s.
The debt-to-GDP ratio rose sharply post-2008 due to quantitative easing (printing money).
As of 2020, the debt-to-GDP ratio is above 120%.
The interest payment on US debt is $881 billion, which is a significant expense.
The interest cost is higher than the defense budget, and the fiscal deficit will continue to increase if not controlled.
Trump aims to reduce the fiscal deficit to 6.2% by 2024 and further to 5.5%.
To achieve this, he needs to control interest costs and expenses.
The average rate of interest for US debt is around 2.43%, but refinancing debt at a higher rate (e.g., 4.18%) will increase the interest cost.
Out of the total $36 trillion debt, 7-9 trillion dollars are due for refinancing within the next few years.
Trump wants to refinance debt at a lower interest rate (less than 4.15%) and increase government revenue through tariffs.
The Federal Reserve Chair, Jerome Powell, is not legally required to follow directives from President Trump.
Powell has asserted that the president does not have the authority to fire him.
The main scenario is that Trump wants to impose tariffs to increase US income and reduce the fiscal deficit.
However, the bigger problem is the increasing debt, which needs to be controlled for the true pain lies in refinancing this debt.
There is a tussle between tariffs, interest rates, and what could come next.
Note: The video also mentions the Har Ghar Investor event and encourages viewers to book their seats.

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What are the potential consequences of Trump's tariffs policy, particularly in relation to the US national debt and interest rates? Feel free to share your thoughts in the comments!