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Americans have a $ 35 trillion question on their hands who is going to pay for our nation's ballooning national debt joining us now as yaho finances Rick Newman you know Rick I always assumed it was it was me frankly and my kid but who else well it is going to be you and your kid and me and all of us really uh neither of the candidates this year Joe Biden if he remains a candidate on the Democratic side and Donald Trump on the Republican side is really leveling with voters about this no politician really does and the reason is pretty obvious uh there's nothing for anybody to like in how we solve the problem and there's a lot for everybody to hate now there's a new analysis out by a budget expert at the Manhattan Institute named Bruce ryell um he does some good work on this on this issue and he has come up with a way to address the problem of the national debt and that doesn't mean paying the whole thing down that's kind of impossible but it means just stabilizing the debt at about 100% of GDP which is around where it is now in other words preventing it from growing much more in the future and here here are some of the ways he says uh things we're going to have to do in order to do that um there going to have to be benefit Cuts in Social Security and Medicare for wealthier participants in those programs he would make no changes uh for people who are in the 40% the lowest 40% of households in terms of earnings there but some serious changes for wealthier seniors and let's keep in mind a lot you know a lot of a lot of seniors don't have a mortgage anymore they own their home outright or they have a very small mortgage payment they don't have uh Child Care burdens and there's there are a lot of people who have uh you know millions of dollars in savings and yet they generally qualify for all the Medicare and Social Security benefits that are on schedle that that's just going to have to change I think that's simple math uh BR uh Brian Rell does also include uh some uh increases in individual income taxes for the wealthiest uh Americans there are some modest changes in business taxes that would take away some tax breaks and some other changes um there's nothing Draconian in this plan such as for example a value added tax or a what's basically like a federal income tax which would raise a lot of Revenue all at once and I think that's the point of this plan which is that if you just do a certain number of things and do them fairly soon including things that a lot of people are not going to like you might actually be able to address this problem without having to overhaul the entire tax system or have massive tax Cuts or tax hikes I mean or something that would cause a recession so this problem is solvable there are many other analyses that show the same thing it's solvable we just need politicians who are willing to tackle it what will be the Catalyst that will tip them in the direction of doing that I mean what what would constitute a crisis that would force action well I think it is going to take a crisis I mean there have been warnings about this for the last 20 years maybe 30 years and Congress has done nothing except make the U you know borrow even more money and make the debt even higher so the the crisis if it happens if it if it gets to that point in other words if Congress and the next president one after that just don't do anything what the the the debt crisis is going to look like this uh the US Treasury is going to be issuing so much debt that there aren't going to be enough investors out in the world willing to buy it um we've seen a few wobbles in the market for treasury Securities with within the last 12 months nothing like what I just described but the treasury has begun to alter the way it sells Securities changing the duration of the note of the notes and bills that it's selling for example and do some things to make sure those auctions go smoothly if the if the treasury gets to the point that they're just aren't enough people to buy all of that debt and that you know the market for debt is not bottomless in the world we might who we might be get getting close to the Limit then the only thing that can happen then is uh interest rates go up and they might go up by a lot and if you try to do stuff like Federal Reserve money printing or other types of money printing then you get inflation so if you really screw this up you could get soaring interest rates and runaway inflation and that would certainly make everybody disgusted more disgusted than ever with all the politicians uh and that might be what it take I mean if you were running a business uh you probably wouldn't want to do that but that is the way we run the country and Rick just uh Switching gears here a bit you know President Biden seems to be kind of doubling down here Rick pushing back on these calls uh we've been seeing uh to get out to drop out of this race what are you thinking Rick I just want to get an update on what where you are right now in this I mean the battle is clearly on within the Democratic party um and you know I think it's fair to say that the odds of Biden dropping out I I don't think there's any reason to think he would resign as president but there is a obviously a chance that he would withdraw as the 2024 presidential candidate I mean those odds have clearly been going up but this all of this um tension might actually be pushing us to a to a new and a better place that we needed to get to anyway which is that Biden is now under intense pressure to get out in public more and prove he has to prove that he is not the feeble old guy that we saw in the debate on June 27th so he supposedly is going to do another press conference this week I think that the demands for this type of thing will just intensify he has done very very few uh press conferences or live interviews where he's really been on the spot and he's had to be able to show that he can muster thoughts quickly and Parry any kind of accusations leveled against him and that and that he's you know sharp enough to to fight this kind of fight he needs to fight against Trump trump as we learned from the June 27 debate one thing Trump can do is he can still attack he's still very agile on the attack so Biden needs to be agile on the defense and on the Counterattack and you know if I think this would be a good development if we just see Biden coming out much more than he has before not reading off the teleprompter as much talking to Ordinary People at homonym exchanges with people and let's let's really test this guy and see if he's up to it we shall see Rick thank you hi guys