U.S. Treasury bonds need the dual impetus of AI and spending cuts to be controlled
2026-10-08 19:03:27
According to CoinMeta, as reported by Benzinga, President Max Baecker of Hartford Gold Company in the United States stated that the country may need significant improvements in artificial intelligence and robotics productivity, combined with substantial spending cuts, in order to control its national debt of about $40 trillion. He pointed out that a deficit of around $2 trillion is expected for the fiscal year 2026, with annual interest costs rising to a record $1.1 trillion. Baecker mentioned that Tesla CEO Elon Musk has said that the rapid growth of artificial intelligence and robotics technologies could expand economic output and help stabilize the debt burden, but such growth needs to occur alongside spending cuts. He also noted that Kalshi traders believe there is a 61% probability that U.S. debt will reach $47.5 trillion during President Trump's tenure. Baecker believes that the long-term risk lies in the gradual depreciation of the dollar, rather than losing its global role, which also explains his bullish stance on gold; increasingly, investors are seeking SPDR gold stocks ($GLD) as a form of protection.
Source:X
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