Ep47 “Is the U.S. National Debt Sustainable?” with Mohamed El-Erian

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  • Опубликовано: 8 ноя 2024

Комментарии • 128

  • @spinningweb749
    @spinningweb749 Месяц назад +56

    12:29 real interview el erian starts here. 😂

  • @oneillbilder
    @oneillbilder Месяц назад +71

    The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

    • @NicholasHarmon-ow3jl
      @NicholasHarmon-ow3jl Месяц назад +3

      They do say gold will crash in a liquidity crunch However, many of those holding precious metals are preparing for such an event. So they are unlikely to be forced sellers. The paper market would tank and hopefully collapse.

    • @DavidRiggs-dc7jk
      @DavidRiggs-dc7jk Месяц назад +2

      I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.

    • @EllenAbrex
      @EllenAbrex Месяц назад +2

      That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?

    • @DavidRiggs-dc7jk
      @DavidRiggs-dc7jk Месяц назад +2

      Vivian Jean Wilhelm is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment

    • @EllenAbrex
      @EllenAbrex Месяц назад +1

      Thank you for this tip. It was easy to find your advisor. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

  • @NanetteCrabtree
    @NanetteCrabtree Месяц назад +109

    aistockadvisor AI fixes this. S. national debt sustainability assessed.

  • @SFrancis-Merry-Monetarist
    @SFrancis-Merry-Monetarist Месяц назад +16

    Let’s get this straight
    We should not be alarmed by the massive debt because assets have been simultaneously inflated by that debt ?
    What if you don’t have assets and rent an apartment?
    What if income does not rise as fast as the inflated assets, as is happening to our entire middle class?
    Only an academic could think like this

    • @kishanagarwal637
      @kishanagarwal637 Месяц назад +4

      They are not supposed to talk about actual problems !

    • @KevinKamto
      @KevinKamto Месяц назад +1

      They're so smart they're actually stupid smh. Disconnected from reality

    • @sunnygee3712
      @sunnygee3712 Месяц назад +1

      Good question!
      Would something called Balance Sheet Recession happen if the debt binge stops?
      Take a look at China today...

  • @rchen404
    @rchen404 Месяц назад +8

    If you're going to use debt to equity ratio (stock market), you need to pull in corporate debt AND unfunded liabilities which are magnitudes larger than government debt

  • @kortyEdna825
    @kortyEdna825 Месяц назад +4

    I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.

    • @PatrickFitzgerald-cx6io
      @PatrickFitzgerald-cx6io Месяц назад +3

      That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..

    • @carssimplified2195
      @carssimplified2195 Месяц назад +2

      Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.

    • @NicholasHarmon-ow3jl
      @NicholasHarmon-ow3jl Месяц назад +2

      How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

    • @carssimplified2195
      @carssimplified2195 Месяц назад +1

      ‘’Aileen Gertrude Tippy’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @NicholasHarmon-ow3jl
      @NicholasHarmon-ow3jl Месяц назад +1

      Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

  • @factchecker9358
    @factchecker9358 Месяц назад +3

    Like in all financial crises, you are not to worry about it until it's much too late to have options for making course corrections. Don't forget to blame others from a safe distance.

  • @CameronFussner
    @CameronFussner Месяц назад +48

    Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.

    • @CharlesArthur-fq5sx
      @CharlesArthur-fq5sx Месяц назад +2

      Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .

    • @williamDonaldson432
      @williamDonaldson432 Месяц назад +2

      I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over $320K.

    • @foreverlaura-fq4eu
      @foreverlaura-fq4eu Месяц назад

      @@williamDonaldson432 I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?

    • @williamDonaldson432
      @williamDonaldson432 Месяц назад +1

      In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 3 years to consistently build my portfolio in preparations for retirement.

    • @foreverlaura-fq4eu
      @foreverlaura-fq4eu Месяц назад

      @@williamDonaldson432 my partner’s been considering going the same route, could you share more info please on the advisor that guides you.

  • @cheersmodreams691
    @cheersmodreams691 Месяц назад

    Good discussion. A summary at the end would have been helpful. Extrapolating growth and productivity gains over time, are you suggesting we get a sustainability balance in 3 to 5 years? But with slowing growth, perhaps a recession, is sustainability challenged forcing higher interest rates, higher inflation rates and a return to restrictive monetary policy? If so, what's the new time frame and what's the damage to the system?

  • @jean-francoisdavid5126
    @jean-francoisdavid5126 Месяц назад +3

    Debt to GDP ratio of japan (250%) might be an anomaly more than anything else. If we assume that USA could reach that 250% ratio without causing harm: this is probably a huge and dangerous gamble to take. There's no more sense of prudence right now

  • @peterbedford2610
    @peterbedford2610 Месяц назад +2

    Given the interest costs on the federal debt, I think.the Fed will need to become a big buyer once again.

  • @davidparsonage1930
    @davidparsonage1930 Месяц назад

    Total US debt is $71 trillion. Commercial property prices have reduced by up to 40%, eg, San Francisco. Office skyscrapers & hotels have been bought relatively cheaply compared to 2012 prices. If businesses are selling assets at significant losses, this will have a negative impact on profits & tax revenues. Is an economy based on either the robustness of industrial/manufacturing base or natural reserves? GDP is a rough guide on how the economy is performing. Small & medium enterprises are more to do with internal markets using existing often basic technologies, while large businesses are looking to emerging markets using advanced technologies. Problem can be ROI on new technologies & the time it takes to realise the benefits. Some benefits can be overexaggerated. Economies are only sustainable if they adapt & become more efficient & effective. Failures can be counterproductive & outrageously expensive, eg, symptom management versus root causes. This can also be a sign of Govts & businesses failing to learn by mistakes or taking into account the latest research.

  • @geo1134
    @geo1134 Месяц назад

    I was hoping they would at least broach the possibility of a debt spiral and those implications. Any thoughts?

  • @SFrancis-Merry-Monetarist
    @SFrancis-Merry-Monetarist Месяц назад +1

    We don’t use stock and flow in same ratio?
    Price earning?
    Price to sales?
    Confirmation bias identified 4 minutes in.

  • @PraiseBaily
    @PraiseBaily Месяц назад +10

    Nigel Thanks for the perfect update. Thinking about investment diversification is certainly key, How do I properly invest 250k in the market and what strategies do I employ to make significant gains and stable cashflow?

    • @bigsuperlivinginarizona7383
      @bigsuperlivinginarizona7383 Месяц назад

      in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial specialist

    • @SylvieKgirard-ij2sx
      @SylvieKgirard-ij2sx Месяц назад

      Well agreed, amid covid-19 outbreak, I simply adopted the service of a certified financial planner instead of panicking and thankfully, I've accrued nearly $1m ROI after subsequent investments to date, marking my most significant financial milestone

    • @Barzanjipearl-nw3bc
      @Barzanjipearl-nw3bc Месяц назад

      this is great! once you hit a big milestone, the next comes easier.. who is your CFP if you dont mind me asking?

    • @SylvieKgirard-ij2sx
      @SylvieKgirard-ij2sx Месяц назад

      Productivity is never accidental; it is always the result of careful planning, dedication, and consistency. I am grateful to God for my advisor, MRS Clara Burn

    • @Matswagner
      @Matswagner Месяц назад

      Clara is the best, honestly, I benefit from it too. This inflation has taught people the importance of multiple incomes. Investments help a lot.

  • @jackbailey7037
    @jackbailey7037 15 дней назад

    Isn't the US debt going to be inflated away? I hear that a lot. Did they discuss that?

  • @ValuePotato
    @ValuePotato Месяц назад +1

    assets inflated by cheap debt and now we are going to measure the debt/assets? There is a saying, a price of something is what someone is willing to pay for it. Your "asset" isn't fixed. let say a house is selling for $500k today, it doesn't mean it will sell for $500k next month. It's the same concept with banks. Majority of their bonds/mortgage securities are under water. If they have to market to market those losses, they are bankrupt from "assets" to "liability" standpoint

  • @rishigupta1738
    @rishigupta1738 Месяц назад

    Excellent and very informative discussion. Thank you

  • @edmondov
    @edmondov Месяц назад

    Reserve currency is really the upper hand of the Federal Reserve

  • @aghassimkrtchyan6323
    @aghassimkrtchyan6323 Месяц назад +4

    FED has already moved to a 3 percent inflation target. A substantial rate cut at 3 percent inflation (core) means that they don’t expect core inflation to go back to 2. It will take another 6 to 12 months for the bond market to understand that

    • @BipolarAbusiveX
      @BipolarAbusiveX Месяц назад

      "Expect" You mean they dont want it at 2 or below. They keep making imaginary numbers on a screen and giving it to other countries, of course it will never be 2 or 1.

  • @jeffheiner
    @jeffheiner Месяц назад

    Thank you for this great explanation and discussion!

  • @Jerry-vz4ix
    @Jerry-vz4ix Месяц назад

    we use Debt/Income rather than Debt/Assets, because the government can't go bankrupt. Debt/assets are good measure if you're filing for bankruptcy. But useless as a measure for maintaining debt levels (but you guys know that, so wth?)

  • @omkarbhise380
    @omkarbhise380 Месяц назад +8

    Amount of optimism that people have on US economy without any fundamentals backing it is insane. Only thing that is holding us economy is AI bubble. If we go in recession next year. US economy will take decades to recover from it.

    • @BageTalks
      @BageTalks Месяц назад

      I wouldn't say decades.

    • @pratikpaharia
      @pratikpaharia Месяц назад +1

      I understand the concern on the bubble "overvaluation", however, what is fundamentally wrong with new valuation coming in from a new potential industry? Isn't that prima facie how innovation driven captal markets should work? That the value lost from downtrending of traditional industry is mitigated by growth in potential new industries - and the ideal case scenarios are when such growth occur just-in-time to mitigate the downtreding of the said traditional industry (and avoids 'sentiment' driven broad-based undervaluation of traditional markets as a whole or "broad sell-offs in equity markets")?

    • @zwatwashdc
      @zwatwashdc Месяц назад +4

      It’s probably realistic to be bullish on the US economy because it is the only show in town. The whole world is following the US and entirely dependent on the US. If there was another game in town, ok. But the US is the only game in town.

    • @chaotheleet
      @chaotheleet Месяц назад

      ​@@zwatwashdc I agree that this is a key factor in the situation. The alternatives all have their own weaknesses and downsides and a "better the devil you know" impulse takes effect.

  • @jameshaddad9619
    @jameshaddad9619 Месяц назад

    A wonderful discussion; thank you....

  • @michaelseibold9977
    @michaelseibold9977 Месяц назад

    The US has done two major tax cuts since 2000, the last year we had a surplus. There is no evidence that these cuts created a sustained growth in GDP over and above prior tax levels. However, they did do the following: cut revenue from corporations as a percent of GDP by 2/3; vastly increased budget deficits directly and both income and wealth concentration; caused states to raise taxes to compensate for reductions in federal programs; and with the Trump cuts, increased the subsidies from blue states to red states by reducing the deduction for state taxes. Yet all you hear from Republicans is we need to cut taxes when the exact opposite is true, particularly for corporations and the wealthy. If you think I'm wrong then show me with peer reviewed data because I doubt there is any.

    • @nathanbaker1868
      @nathanbaker1868 Месяц назад

      The modern federal income tax was introduced in 1913 as a tax only on the richest Americans. It affected less than 1% of the population and was 1% of income. Today, about half of the population pays federal income tax and the wealthiest quintile pays an average of 30% of income. I hear politicians saying we’re cutting such and such expense when in reality we’re spending 5% more but last year we increased the expense 6% more. It doesn’t matter what the tax rate is because the federal government will continue to spend more than it makes. This focus on tax rates is like focusing on how well tuned your violin is while you’re sinking on the Titanic.

    • @michaelseibold9977
      @michaelseibold9977 Месяц назад

      @@nathanbaker1868 sorry but you don't have any idea what you are talking about. Complete bs. You have literally no real data to support you position just like most uneducated and uninformed Americans.

    • @nathanbaker1868
      @nathanbaker1868 Месяц назад

      @@michaelseibold9977 What position? The one that the US government has spent more than it brought in every year since Truman was in office? Including the 1960s when the top tax rate reached 91%? Anyone can look up the claims I’ve made in about 5 minutes, but if you’d like to keep believing that raising taxes will magically fix everything and calling people uneducated, by all means have at it

  • @jean-francoisdavid5126
    @jean-francoisdavid5126 Месяц назад

    what worry me it's explosion of public debt of the pandemic: no one seem to care to reverse it, debt just go on and on. At some point a tipping point could be near, if debt not adress. I big breakdown in trust would mean higher interest and default maybe

  • @paulmoreland-v4l
    @paulmoreland-v4l День назад

    AI stocks are set to dominate in 2024, and I favor NVIDIA for its strong positioning to sustain long-term growth and its role as a platform supporting other AI companies. I know someone who’s seen over 200% gains with NVIDIA. I’m also open to any other recommendations you might have.

    • @GlenMathew-p6o
      @GlenMathew-p6o День назад

      I believe AI is the next big opportunity. For lasting growth, similar to what we've seen with META, it’s essential to avoid impulsive decisions based on short-term market swings. Prioritizing patience and maintaining a long-term perspective are key-consider consulting a financial advisor to make well-informed buying and selling choices.

    • @MilesJaxon-z5b
      @MilesJaxon-z5b День назад

      In a similar situation, I consulted with an advisor who helped me restructure and diversify my portfolio with quality ETFs, S&P 500, and growth stocks. This approach transformed my portfolio from $200K to over $800K in just a few years.

    • @Christopher_Hauser
      @Christopher_Hauser День назад

      Your advisor sounds excellent! If you don’t mind me asking, are you still working with the same person? And if so, would you be open to sharing how I might get in touch with them?

    • @MilesJaxon-z5b
      @MilesJaxon-z5b День назад

      Rebecca Lynee Buie has been doing a great job. you can look her up

    • @Christopher_Hauser
      @Christopher_Hauser День назад

      I just researched her online, and she has an impressive background in investing. I’ll send her an email shortly.

  • @titusp9488
    @titusp9488 Месяц назад

    Dang El-Erian kicked Stanford and Wharton's butt in 5~10 minutes

  • @choksheak2lau697
    @choksheak2lau697 Месяц назад

    The 2 voices in the interview are too similar and I have a difficult time trying to determine who is who.

  • @stefanschwarzbonn
    @stefanschwarzbonn Месяц назад

    No good audio quality during the beginning. Turns down, even for very interested observers. You should do better. Important topic, bad executivon. Below your aspirations, I'd hope. Regards from Germany.

  • @billmitchell2080
    @billmitchell2080 Месяц назад

    Yes. So there you go. No point in watching an exercise in futility.
    29 trillion dollars of this debt was incurred to stem the 2008 financial crisis.
    Phil Gramm was a genius. I wonder how much money he ended up with?

  • @junzhang2087
    @junzhang2087 Месяц назад

    US future tax is based on collectible cap gain tax, 401k and other retirement income tax. So high debt to these collectible tax ratio is flat

  • @patrickyk1900
    @patrickyk1900 Месяц назад +3

    Population growth is so old school in the era of AI. We may have issues to fully employ the current population in the not so distant future. In fact, birth rate will go down a cliff when AI takes over.

    • @zwatwashdc
      @zwatwashdc Месяц назад

      Good point except we already have many surplus people in most countries. We know this because large numbers of people are spending their lives mired in drug abuse and otherwise productive people are dying of drug abuse or being pushed out of the labor force for various capricious reasons. People with children are squeezed in every direction and in the US at least we are run by childless people. There is no emphasis at all in leadership having a direct stake in the future. At every other time in history children have been very important to the right to rule. Today they are a hindrance. These are just a few examples that we are already there.

  • @sallysally58
    @sallysally58 Месяц назад

    In view of BRICS Currency and payment system.

    • @titusp9488
      @titusp9488 Месяц назад +1

      USD dominance will NOT last forever (nothing does)

  • @isheekashadiza9111
    @isheekashadiza9111 Месяц назад

    Trying to explain geopolitical dynamics and the US Imperial Project as gibberish economics

  • @greigsanderson
    @greigsanderson Месяц назад +1

    2012

  • @factchecker9358
    @factchecker9358 Месяц назад +1

    Let's see now, the message from some economists for big spender political party leaders is it's okay to spend in great excess of revenues in normal growth years in addition to massive stimulus spending to "save" the economy in the down years. That does not get to damages cause by the same political leaders across a decade leading to a recession or other policy fails like ignoring trade strategies in China to dominate industries with massive overproduction. Against this backdrop, you never hear any apologies from leaders or economists on the massive mistakes or waste or long overdue corrective measures on the back end. Mandela was right with his truth and reconciliation courts, at least while he lasted.

  • @matthewbe19
    @matthewbe19 Месяц назад +1

    Mohamed mentions technology as a way for productivity to drive growth and I am struggling to see how that impacts government spending. He references life sciences as an example but when I look at medical technology it seems like it drives government spending. If you hurt your leg the doctor would previously say let's ice it and see how it goes; now you get a $1500 MRI that is largely being paid for by government. It sounds morbid but as life expectancy raises after retirement I don't see how that is a cost saver regardless of AI. Interested if someone can help me understand the dichotomy in a different way.

  • @jamesdanforth9044
    @jamesdanforth9044 Месяц назад

    keep growth in debt 150 bp lower than GDP and all will be fine.

  • @alexhoneydealer1798
    @alexhoneydealer1798 Месяц назад +1

    Interesting start, and middle of the economic discussion but why swtched to war at the end is relevant at all?
    To increase (GDP per person)× (population) or to push political message?

  • @spinningweb749
    @spinningweb749 Месяц назад

    Is US National Debt Sustainable?
    It depends on whether US will maintain its technological edge over the rest of the world and continue to lead in new industries.

  • @ammarsawi
    @ammarsawi Месяц назад

    US National Debt ?! Does the world needs to do that ?

  • @KJB-Man
    @KJB-Man Месяц назад

    No!

  • @paultan4240
    @paultan4240 Месяц назад +2

    Dont forget most of US assets are not own by US but foreign entities...just try to change the conventional way of measurement to feel better about it..😂

  • @Jake-Jake
    @Jake-Jake Месяц назад

    day late and a dollar short , tell me something i don't know....🙉

  • @logomo7
    @logomo7 Месяц назад +1

    US Debt is sustainable as long as they can maintain the USD world currency status. The day they lose that status, is the day the debt is no longer sustainable. Simply put, US is able to "pay off" their debt with their ability to print their world currency USD.

    • @zwatwashdc
      @zwatwashdc Месяц назад +1

      The world currency system depends on the US giving away a lot of money. When this all started the US was a producer and countries desperately needed those goods. As the situation evolved they made a deal that oil would trade in US dollars. It’s not clear to me, at least, that the US can afford the global system anymore.

  • @a.k722
    @a.k722 Месяц назад

    No

  • @LurchLures
    @LurchLures Месяц назад

    All this theory is irrelevant. Neither party nor the bulk of electorate care about debt levels. It doesn't matter what people say. It's what they do or don't do that matters. So sooner or later debt will be unsustainable, even if its not already.

  • @MrWrstone
    @MrWrstone Месяц назад

    Everything is fine. Go back to shopping. We’ll let you know when it’s too late.

  • @GoodGolden
    @GoodGolden Месяц назад +1

    Click bait; A couple of academics talk stuff they don't live in.

  • @aroshaperera8750
    @aroshaperera8750 10 дней назад

    Sound like some major Gaslighting going on! The measurements look bad, so let's change the way we measure???
    Come on??

  • @SmithTroy-w1y
    @SmithTroy-w1y Месяц назад

    Miller Edward Johnson John Rodriguez John

  • @ЛейлаИсаева-р1ч
    @ЛейлаИсаева-р1ч Месяц назад

    Brown Robert Taylor Angela White Larry

  • @georgeevanick40
    @georgeevanick40 Месяц назад

    As soon as I heard the phrase “climate crisis”, it was time to tune out as it’s a clear indicator of herd mentality.

  • @andrewnlarsen
    @andrewnlarsen Месяц назад

    Hell no.

  • @stevenkellysillick4042
    @stevenkellysillick4042 Месяц назад +3

    You know he's a shill because he's asking not if a surplus but rather if a debt is sustainable

    • @KevinKamto
      @KevinKamto Месяц назад

      We used to be a country smh

  • @KevinYau-v7i
    @KevinYau-v7i Месяц назад

    Not a Yank, Singaporean & proven foeman of the FRBNY. Really is the best that you the high muckty mucks of the highest & most August critical thinkers of emient institutions can really do, sweep things underneath the carpet, cross your fingers & hope that the worst do not materialises.

  • @SalmanovGadzhimurad-pj9qq
    @SalmanovGadzhimurad-pj9qq Месяц назад

    РИМ-ТОКИО-БАНГКОК
    From your Watch later playlist
    ПАДТАЙ ИЗОБРЕЛИ ФАШИСТЫ -
    ВЫ НЕ ЗНАЛИ ЭТО ПРО ТАИЛАНД... в чем беда с Исламом

  • @qake2021
    @qake2021 Месяц назад

    👍👍👌🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦➕️👏👏👌

  • @AngeloPerez23983
    @AngeloPerez23983 Месяц назад

    The US is Donesky. Looking forward to the downfall. Get my popcorn.

  • @mshah75
    @mshah75 Месяц назад

    All academic mumbo jumbo,

  • @phil20_20
    @phil20_20 Месяц назад +2

    It's stupid to keep paying this level of interest. Congress is like all the bad debtors in this country rolled into one. 🎢 We are paying absurd levels of interest on our personal debts, and on top if this, we are also stuck paying interest on the poor fiscal policy of our government. It's time to start paying off the national debt. We need to raise more taxs to do it. That's the austerity we need and what the rich are so afraid of. The bill has come due, and the rich oligarchy is in default.

    • @titusp9488
      @titusp9488 Месяц назад

      Debt interest / tax revenue for the US is at 34% !!