Economist joins NTD News to discuss Washington’s spending problem
SAN JUAN, PUERTO RICO, September 1, 2026 /EINPresswire.com/ -- Christian Briggs Warns Rising U.S. Debt Could Test Investor Confidence and Drive Greater Demand for Gold
Economist joins NTD News to discuss Washington’s spending problem, a potential four-to-six-year fiscal window and what declining Treasury confidence could mean for interest rates, inflation and gold
Economist and Hard Asset Management CEO Christian Briggs joined NTD News to discuss
Briggs cautioned against interpreting the size of the debt alone as evidence that the United States is insolvent.
America still possesses an enormous economy, significant assets and the capacity to service its financial obligations, he explained. The greater danger, in his view, is the continued accumulation of new debt through persistent federal deficit spending.
His diagnosis is straightforward: the United States does not primarily have a revenue problem, it has a spending problem.
During the NTD interview, Briggs argued that Washington still has an opportunity to address the country's fiscal trajectory, but warned that the window for meaningful action may be narrowing.
A Spending Problem, Not Simply a $40 Trillion Number
The federal government routinely spends more than it collects, requiring the Treasury to borrow the difference.
Briggs said the more important question is therefore not simply how large the national debt becomes, but whether lawmakers demonstrate the political willingness to reduce the annual deficits continually adding to it.
He pointed to waste, fraud and inefficiency within major federal programs, including Medicare, Medicaid and Social Security, as areas where substantial savings could potentially be identified.
Briggs argued that aggressively targeting fraudulent payments and unnecessary expenditures could help reduce federal spending without requiring Washington to eliminate programs relied upon by millions of Americans.
The objective, he said, should be to protect legitimate benefits while confronting spending that unnecessarily increases the government's borrowing requirements.
But when NTD asked how long the current trajectory could continue before the consequences become more difficult to avoid, Briggs offered a considerably more serious warning.
His estimate: potentially another four to six years if meaningful reforms are not implemented.
The timeframe is Briggs's assessment rather than a prediction of a specific default or financial crisis. Instead, he describes it as a period during which policymakers may still have greater flexibility to change the country's fiscal direction before debt-service costs and investor concerns become more difficult to manage.
What Happens If Treasury Investors Demand More?
Briggs said one of the greatest risks is not simply that the debt number continues rising.
It is what happens when the investors financing that debt begin demanding greater compensation to continue doing so.
The United States relies on a deep global market for Treasury securities to finance government operations and refinance existing debt as it matures.
If investors become increasingly concerned about Washington's ability or willingness to control deficits, Briggs warned that they could demand higher interest rates before purchasing additional government debt.
That would make federal borrowing more expensive.
Higher Treasury yields can also influence borrowing costs throughout the broader economy, potentially affecting mortgages, business loans and other forms of credit.
Meanwhile, refinancing trillions of dollars of federal debt at higher interest rates could consume an increasingly large share of government resources.
For Briggs, this is where the national-debt issue begins moving from Washington directly into the finances of American households.
Inflation and Purchasing Power
Briggs also warned that continued deficit spending and rising borrowing costs could eventually place additional pressure on inflation and the purchasing power of the U.S. dollar.
The concern is not that investors will suddenly abandon Treasury securities overnight.
Rather, Briggs argues that confidence can deteriorate gradually.
As investors reassess risk, governments may be required to pay increasingly attractive yields to obtain financing. At the same time, persistent deficits can place additional pressure on policymakers seeking to maintain economic growth while managing the cost of servicing the debt.
Briggs believes the administration taking office following the 2028 presidential election could therefore inherit a substantially more difficult financial environment if meaningful fiscal reforms are delayed.
That makes the next several years particularly important, he said, for bringing spending and revenue closer into alignment.
If Money Moves Away From Treasuries, Where Does It Go?
The NTD conversation then turned to an increasingly important question for global investors:
If confidence in government debt weakens, where does capital move instead?
Briggs pointed to gold.
He noted that central banks around the world have continued accumulating gold as governments seek diversification within their reserves and investors look for assets that are not simultaneously someone else's financial obligation.
For Briggs, the strength of the gold market reflects broader concerns surrounding sovereign debt, currency purchasing power and the long-term sustainability of government finances.
If U.S. debt continues climbing and confidence in traditional paper assets deteriorates, Briggs believes gold could potentially reach $5,000 to $6,000 per ounce, and possibly move higher over the coming years.
The forecast represents Briggs's outlook and is not a guarantee of future gold prices.
His broader argument is that demand for tangible reserve assets could continue increasing if investors and central banks become less comfortable concentrating their holdings in government-issued debt and currencies.
Tariffs and Federal Revenue
The NTD interview also examined the impact of recent tariff rulings and whether changes to U.S. tariff policy could remove a potentially meaningful source of federal revenue.
Briggs has previously argued that tariff revenue could play a role in improving the government's fiscal position, though he does not view tariffs alone as sufficient to resolve America's debt problem.
The larger challenge, he said, remains federal spending.
Even substantial new sources of revenue provide limited long-term benefit if expenditures continue rising faster.
For Briggs, genuine fiscal improvement requires Washington to confront the underlying structural imbalance rather than relying exclusively on stronger economic growth, additional taxes, tariffs or other revenue sources.
How Long Will Investors Keep Financing Washington?
Ultimately, Briggs said America's ability to borrow is not presently the central question.
The United States continues to possess one of the world's largest economies and deepest financial markets.
The more important question is how long investors will continue financing rapidly expanding federal debt on favorable terms.
Briggs argues that waiting until markets force Washington to confront the issue would leave policymakers with significantly fewer choices.
Reducing waste, controlling spending and improving fiscal credibility while investors still have confidence in U.S. obligations could allow the country to address the problem gradually.
Waiting until borrowing costs rise sharply could make the required adjustments substantially more painful.
The full NTD News interview featuring Christian Briggs is available now on YouTube.
Watch the full interview:
https://youtu.be/rWy3nJ69r6U
On the Record with Christian Briggs
On the Record with Christian Briggs brings together thought leaders and economists to examine financial issues shaping our era. Each episode provides insights on economic trends and the importance of tangible assets for wealth preservation.
About Christian Briggs
Christian Briggs is a financial commentator, economist, and hard asset specialist who has advised members of Congress and the U.S. Senate on issues involving monetary policy, central bank digital currencies (CBDCs), hard assets, and global financial systems. As CEO of Hard Asset Management and a veteran of financial markets since 1987, Briggs brings decades of experience analyzing the intersection of economics, geopolitics, emerging financial technologies, and wealth preservation strategies.
Disclaimer: The content presented is for informational and entertainment purposes only and should not be construed as professional financial, investment, legal, tax, or political advice. Any reliance you place on information from this episode is strictly at your own risk. Information presented in this episode reflects conditions and knowledge as of the date of recording. Circumstances, facts, laws, regulations, and market conditions may change after the episode is produced. The host is not under any obligation to update or correct information after publication. This episode may contain strong opinions, controversial viewpoints, or content that some viewers may find objectionable. The Show, its host, guests, and affiliates make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or suitability of the information contained in this episode. Any reliance you place on such information is strictly at your own risk.
No comments:
Post a Comment