America’s DEBT Problem Just Got WORSE | Why Bitcoin Matters NOW! | Bitcoin Simply

0:00Japan just dumped 90 billion in US treasuries to defend its own currency. And now the US treasury is also signaling distress, saying that it's going to buy back 14 and a half billion dollars of its own treasuries using its own currency. And the deficit spending situation is going from bad to worse. US true interest expense, which is gross interest, plus entitlements, plus veterans affairs, are 105% of US receipts, through the fiscal third quarter of 2026. And they are growing 7.5% while receipts are growing 4%. Interest payments on the debt hit 763 billion in the first 10 months of the fiscal year. And here's what's crazy, it's even more than defense spending, which is 728 billion. The last time that interest payments surpassed US military spending was in the late 1920s, and we all know what happened next after that. The fiscal situation is going from bad to worse. And some people think it's going to explode, but I don't think it's going to go down the way you think it will. What happens is the safe assets are becoming the source of risk.

1:02But I'm going to tell you why Bitcoin is taking their place from the risky asset to being the safe asset. And why Bitcoin companies will be the most valuable companies on the planet. This is Dante Cook with Bitcoin simply. Let's go. Yeah. The decades for now, I'd like to try to do the biggest company in the world. And I would like us to be a fundamental part of bringing Bitcoin to all corners of the world, to people in third world countries, first world countries, to banks, to individuals, to institutions, and really making Bitcoin a mainstream asset class, and potentially the most important one. Okay. Like the biggest company in the world, bigger than in media, Metagul. Yeah, biggest in the world. How can funnily be this confident in Bitcoin? How can they say that they're going to be one of the largest companies in the world, bigger than Nvidia, Metagul? It's because you see the writing on the wall and the rewriting of the financial system.

2:06He understands that as a company, even his company, which was disrupted by tools and BI and AI and other technologies, can be disrupted. That is predictable. That they can put their capital behind as a company. But he's not the only one with that opinion. Before we go any further in our episode to show you why Bitcoin is becoming the safest and most valuable asset in the world, do subscribe if you get value from this content. We drop fire content like this seven days a week. And if you want to be as bullish as fun, Lee, well, consider subscribing to simply Bitcoin. Let's get back to the episode. According to prediction markets, there's a 72% chance that Bitcoin closes higher than 82,500 this month. And that's because there's a macro structural trade that's going on right now. The major capital markets are starting to turn to Bitcoin as the safe asset. Listen to Matt Cole, the CEO, strive. One of the largest Bitcoin treasury companies. But a structurally weaker dollar that could be down 30% from its current levels as like a rough target over the next three to seven years would be something we've never seen in Bitcoin's history.

3:08And it would in my view ignite a bull run in Bitcoin that we haven't seen before. Now, the next question becomes, it's not just going to be Bitcoin that will likely benefit. Scars assets will benefit. As much as I'm a Bitcoin Maxi, I think gold will do really well. I think silver will likely do really well. But the question becomes who is the fastest horse within these scarce assets? And I think again, the technicals are starting to point towards Bitcoin reclaiming its role as its fastest horse during this best macro backdrop for scarce assets in Bitcoin short history, which then comes to point to like, well, if those things are happening, what should that mean for the price of Bitcoin? Which is why I've been saying that I think that $250,000 is too bearish for Bitcoin in this bull market. I mean, obviously like, there's no cap to how high Bitcoin will go eventually because of the use to be debased and it's worthless. So in a sense, it doesn't Bitcoin will go to infinity, right? But over the next few years,

4:10I think it's structurally set up for a move to call it $500,000 to a million plus, which I think is more bullish than most of the market is now. How do you explain the irrational confidence in backdrop of their thesis? Let's go back to the Luke Roman clip and the numbers that we dropped in the opener of the episode. US true interest expense, which is gross interest plus entitlements plus veterans affairs are 105% of US receipts through the fiscal third quarter of 2026. And they are growing 7.5% while receipts are growing 4%. 105%. When you combine gross interest expense when you combine social security, Medicare, veterans related obligations, the federal government's interest and interest like obligations, the government is now paying 105% of what it collects in revenue. And the obligations are growing faster than receipts. And here's where things get worse. If the fed raises rates, the cost of financing goes higher. 105% becomes 107%, 110%, but the bigger issue might

5:15not just be the interest expenses themselves. It's the actual entitlements. Every one on Wall Street says we don't have a debt problem because we owe our debt in our own currency, but we don't. We have entitlements, $100 trillion plus an entitlements. That is $3 plus trillion a year when you look at social security, Medicare, Medicaid, and veterans affairs. Those are in a hard currency. So we're spending 60, 60% of receipts nearly on Medicare, Medicaid, social security, and veterans affairs, which are all inflation adjusting. You know, we don't owe my parents, you know, we don't owe my dad a payment for Medicare. We owe them a knee. We owe them diabetic medicine. All of that stuff is a hard currency. Hip sneeze, doctors time. It's all a hard currency. And more we print, the more the price of those things go up as we're all seeing. And so to me, this is like the elephant

6:22in the room that no one wants to talk about. And this whole, is he going to hike? Is he not going to hike? What we've actually promised as the American dream, social security, retirement, isn't that I just owe you dollars? It's I owe you a new knee. I know I owe all the medical bills, all the hospital bills associated with it, all of the nurses, all of the doctors, and those you can't print. And that's why the cost of healthcare continues to rise. And that's why our obligations continue to rise, along with these entitlements. And so that's why America may not default the way that Argentina defaults. It's going to be able to pay everyone. But understand this, is getting your dollars back the same thing as getting your purchasing power back. The amount that you can buy will be eroded over time. And that's exactly what we've seen in Japan for the last 30 years. In Japan, 40 years after the fact of this all happening is now waking up with a current dilemma. How do we defend our own currency? They didn't just wake up and say, we need to sell US treasuries. We're one of their biggest allies. They did it because they had to. They just dumped $90 billion in US

7:22treasuries because they were forced into this decision. Every country is going to choose itself before it chooses to defend another country. And what happens if more creditors start making that same exact choice? Japan needs to defend the yen. China needs to continue to diversify. That's why there's 650,000 ounces of gold last month was their highest amounts since 2023. Europe's got its own issues. Everyone is starting to pull in opposite directions because everyone is trying to save themselves. And so at this moment, this doesn't lend itself to what people might think. A collapse like the Lehman Brothers 2008, a big bubble collapsing, red screens, traders screaming, politicians freaking out. People like Lynn Alden think this is going to be a long, slow and painful collapse. That could last until the 2030s. When the problem is like structural and titan-like issues, bloated DOD and no major war are the ones we start? There's just less overall appetite for it. And so my expectation is that it's a very long ordeal. I mean, this is arguably

8:22been going on since I mean, really set the global financial crisis. But you know, the more recent wave of it, I would say started in kind of 2019 or so right before COVID. And obviously COVID then accelerated for a period of time. I'm not think this will at least be going on to the 2030s and perhaps longer because it's a slower motion type of train wreck rather than a more imminent type of crisis. As the government issues a little bit more that in our creditors begin to sell off our assets for defending their own currency, gold gets a little stronger. Bitcoin gets a little stronger. The currency gets a little weaker. Nobody declares with a big headline, the debt crisis has just begun. It's already happening. It's just happening in slower motion and slower than most people might think. Bitcoin doesn't need the government to explode. Bitcoin simply needs a little less confidence in government liabilities every single year. And that's what's going to create an asset that is going to grow at 20 to 30% a year for the next decade. And that's why Fong Lee believes that his company is going to be the most valuable in the world. Before we go

9:25any further in our episode, let's think our sponsors. I feel like Fong Lee, I believe in Bitcoin, and thus I don't sell my Bitcoin. He has a publicly traded company to run. But me, I have my own stack. I spend less than I earn and I save. And when I save, I save in Bitcoin. And therefore, I don't want to sell that Bitcoin for dollars. Letting allows you to borrow against your Bitcoin stack up to 50% of the value that you post onto their platform. You can get fiat in your account in less than six hours. You post your Bitcoin as collateral, you get dollars. The dollars become worth less over time while you're asked to continue to appreciate and value, meaning you're actually inflating your data way. They do this responsibly and they've never lost a single center side of customer money. It's institutional grade. Get started with letting today if you don't want to sell your Bitcoin and don't want to incur any capital gains or get rid of your most valuable asset. You can also think about considering the Bitcoin way. People that will help you understand exactly how the Bitcoin network works, how to run a node, how to relay a transaction, how to sign a transaction. Once a difference between single, second, multi-sake, how to set this up in a trust.

10:25It's not that complicated, but you might want to get a coach to help walk you through what all of this means. Get started with the Bitcoin way by going to the Bitcoin way.com slash partners, slash Dante and Ashko. Everyone is starting to reframe the basic idea of what risk means. And right now, Bitcoin is becoming less risky than even the most stable companies in the world. Listen to what Jordy Vester had to say. That system is based on ever-increasing leverage. I believe because of the volatility that we've seen in these stocks, each company's volatility has gone through the roof. Mycron is trading at four times Bitcoin's volatility. Think about that. If you take the 60-day vol for Bitcoin, it just finished last week at 24. 60-day realized vol. Mycron, 120. You can't own as much Mycron as you can Bitcoin right now because it's less volatile. So the whole world has gone topsy-turvy and what that says to me is, Bitcoin is a safer investment than a company three years from now. And because of that, when you start to go through this, you have to question how your portfolio is, how you're

11:27invested in it. It's funny that it chose Mycron because Mycron is one of the largest companies in the world that has one of the most stable and predictable pipelines of any corporate giant and company out there. We are memory constrained and they're one of the only companies that solves a memory problem for AI compute. So Bitcoin is becoming the safer asset for people in their portfolios. But here's one thing. There's two sides of a coin because while this debt problem is explosive and it could go up and flames in a moment, I think it's going to be slower over time. And Arthur Hayes actually puts out a good point of that. The US government can actually afford to defend their currency the way that they probably need to. And what is your outlook here? I mean, I think we couldn't maybe breach the all-time high by the end of the year. But I think at the end of the day, they still can't give the game away too much before the midterm elections. We're at the number one issue from American voters is affordability. That's what they care about. And so Trump's got to somehow square the circle on this one about how all these accommodative things that his people are doing is

12:29not printing money. And so I don't really know if Bitcoin at 500,000 the day before the election is really going to help them out too much. So as much as we would like that to happen, globally, as people who own crypto. So like on one hand, the structural factors that we've been talking about necessitate pretty money. And we know that's going to happen. But on the other hand, you've got these discrete political timelines that you need to manage to if you're a US politician. And you can't have it be seen that you are promoting the Fed printing money. Because I think by this point in time, most Americans think the Fed is this engine of inequality as Scott Besson said in the Wall Street op ed journal. Right. And so like there needs to be this illusion that they actually care about the purchasing power of this currency that you make as an American taxpayer. A massive print is politically unfeasible given that the number one problem that Americans have is affordability or the unaffordability of America. And so when people lose faith in the currency, well,

13:30you're going to lose votes and you're going to lose trust in the American public. And that's why this slow air releasing out of a balloon is the more likely scenario for this fiscal crisis. And why Bitcoin becomes the safe asset over time. But don't just listen to me about what I think. What do you think? Subscribe to the channel if you already haven't. And if you haven't already started stacking outside of buying Bitcoin on an exchange, consider buying it through a Bitcoin minor like Sazmining, the leader in Bitcoin mining. You give them their money, they hook you up with a machine, they plug it into the network and they repair it, they maintain it and they sense that straight to your wallet. Get tax advantages and Bitcoin at the same time. Use the QR code to get started with Sazmining. This is down to cook a Bitcoin simply. Happy stacking.