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If the Democrats win the midterms and
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you end up with a Democrat in the White
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House in 2028, I think that there's a
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bigger problem at foot, which is all of
00:00:10
the state and local obligations. We've
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talked about Social Security looks like
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it's going to run out of money in a few
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years here. And there's a similar
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problem at the state and local level.
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you'll very likely see a federalization
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of that obligation, meaning that the
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federal government will step in to bail
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out or support those state and local
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governments because otherwise there's
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going to be a real kind of economic
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crisis a foot. So when you add that
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liability coming to hit this CBO report,
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which doesn't include any of that in the
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next 5 to 10 years, I think that could
00:00:42
be not just the straw that they breaks
00:00:44
the camel's back, but the concrete that
00:00:46
breaks the camel's back. And that's the
00:00:48
thing I'm most worried about. There is a
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deep connection between what's going on
00:00:52
with the socialist movements at a city
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level and now increasingly at a state
00:00:56
level and what we should expect to
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happen with the US dollar and how it
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relates to federal spending and federal
00:01:03
deficits and federal debt. And these are
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going to be dragging each other into a
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bad place in the next couple of years
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one way or the other. If it's very hard
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to cut spending or get Congress to
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approve budget cuts that we need to save
00:01:17
ourselves from this debt death spiral,
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imagine how much worse it's going to be
00:01:21
in the next couple of years if we have
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to bail out or federalize state and
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local uh debt and state and local
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pension obligations. It's going to be
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really nasty. If we can find a way to
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declare bankruptcy to restructure the
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the fiscal obligations or the the
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pension obligations that sit at the
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state and local level, we may have a way
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out. But short of that, uh that's going
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to pile onto this uh this federal