By OBBM Network Editorial Staff

Christian Briggs

Imagine a household that keeps borrowing to pay its credit‑card bill, only to watch the interest pile up until the monthly payment becomes impossible. That is the situation the United States faces with a $40 trillion national debt, and economist Christian Briggs says the clock is already ticking.

The Debt Size vs. Economic Strength

Briggs begins by putting the $40 trillion figure in perspective. “We’re still a $33‑$34 trillion economy,” he notes, emphasizing that the nation’s gross domestic product remains robust despite a slower pace in some manufacturing and service sectors. Yet the disparity between the size of the economy and the debt raises a fundamental budgeting question: how long can the United States keep borrowing without a clear plan to balance the books?

He argues that the answer hinges less on raw numbers and more on political will. “It’s a universal consensus that we need to stop spending more than we make, even if it means pinching a few pennies,” Briggs says, underscoring the bipartisan desire to rein in deficit spending.

Targeting Fraud and Illegal‑Immigration Benefits

Briggs identifies two major drains on the federal budget: fraud in entitlement programs and what he calls “fraudulent illegal giveaway plans” for undocumented immigrants. He estimates that cutting these out could save roughly $2 trillion a year – the same amount as the current annual deficit.

“If you cut out the fraud and part of the illegal‑immigration benefits, you’d probably save $2 trillion a year,” he explains. “Eliminate the fraud in the agencies, that’s $1 trillion. What’s the interest on that long term?” By eliminating waste, Briggs believes the United States could dramatically reduce the interest burden that adds $1‑$2 trillion each year to the debt pile.

Investor Patience Is Not Unlimited

Even with a strong economy, the market’s confidence in U.S. Treasuries is not infinite. Briggs warns that investors may begin to balk within “two or three years” if they do not see a credible plan to curb the deficit and begin reducing the debt.

He adds, “When investors don’t see results or some manageable understanding of the deficit and the debt, I think they’re going to start throwing a temper tantrum.” The likely consequence, he predicts, is higher borrowing costs, rising inflation, and a weakened dollar.

Gold, Hard Assets, and a Possible Return to the Gold Standard

Briggs connects the debt dilemma to a broader shift in global currency preferences. He notes that the dollar’s share of daily international transactions has fallen from about 85‑90% fifty years ago to roughly 50% today. Central banks, he says, are increasingly buying gold as a hedge against the dollar’s devaluation.

“Gold has more than tripled since September 2022… to over $5,000 by February 2026,” he remarks, suggesting that the next surge could push gold to $5,000‑$6,000 per ounce within the next two years. Briggs even entertains the idea of returning to a gold standard, arguing that “we’ve been in a permanent decline on the dollar’s buying power ever since Nixon took us out of the gold standard in August of 1971. We may actually should go back on the gold standard, in my opinion.”

Policy Moves Under President Trump and Treasury Secretary Scott

Briggs credits the current administration for taking steps to improve the fiscal outlook. He points to President Trump and Treasury Secretary Scott’s efforts over the past 18 months to strengthen the dollar’s position and to address the debt trajectory.

“The next 18 months matters because the next president in ’28 will have to deal with this on a much more serious level,” Briggs says, emphasizing that the groundwork laid today will shape the nation’s fiscal health for the next decade.

In sum, the conversation on “On The Record with Christian Briggs” paints a stark picture: without decisive action to eliminate waste, curb spending, and restore confidence in hard assets, the United States could face a fiscal cliff within a few short years.

The full episode of On The Record with Christian Briggs is available on OBBM Network TV.