The United States is grappling with a daunting national debt of $39 trillion, a figure that continues to grow as government spending outpaces revenue. As the nation hurtles towards its 250th anniversary in 2026, finding innovative solutions to this fiscal crisis has become imperative. A recent video by Karlton Dennis explores the intriguing relationship between the national debt and potential strategies involving cryptocurrency and gold, possibly backed by President Donald Trump.
Initially, Trump’s approach to tackling the debt focused on creating the Department of Government Efficiency (DOGE), led by Elon Musk, which aimed to cut wasteful federal spending and improve budgeting efficiency. While DOGE managed to save around $215 billion, this amount was merely a drop in the ocean compared to the overall national debt. It became clear that spending cuts alone were insufficient to resolve the debt crisis.
The national debt continues to balloon because the government spends more than it earns, necessitating the issuance of Treasury securities to borrow money. This borrowing is sustainable only as long as investors demand these securities at reasonable interest rates. However, even a slight increase in interest rates could cause the government’s annual interest payments to skyrocket, having a devastating impact on the broader economy.
In response to these challenges, Trump’s administration explored new strategies involving emerging financial technologies, particularly cryptocurrencies. The Genius Act, passed in July 2025, mandates that stablecoins – digital currencies pegged to the US dollar – must be backed by either actual US dollars or short-term Treasury bills. This linkage creates a direct demand mechanism for government debt, as growth in stablecoin circulation translates into increased demand for Treasury securities, helping to keep interest rates low and borrowing costs manageable.
Another innovative tool proposed is gold-backed Treasury bonds. These bonds would allow investors to lend money to the government and receive physical gold upon maturity, without interest payments in the interim. This method, supported by Judy Shelton, Trump’s economic adviser, leverages the government’s enormous gold reserves, which, if revalued closer to current market prices, could unlock trillions in liquidity. This liquidity could then be used to reduce debt or stabilize the economy.
While these financial innovations may offer temporary relief and stability, they do not address the root problem of federal overspending. Rising interest rates could slow economic growth by increasing the cost of capital for businesses and government projects. Thus, long-term solutions require fiscal discipline, smarter investments, and policies that promote sustainable economic expansion.
As the United States navigates its fiscal challenges, it is clear that a combination of short-term fixes and comprehensive fiscal reform is necessary to control the ever-growing national debt. The approaches discussed in Karlton Dennis’s video may provide critical short-term support to the nation’s finances, but the real challenge remains balancing quick fixes with long-term fiscal responsibility.
Watch the full video by Karlton Dennis to gain further insights into the potential solutions to the US national debt crisis.
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