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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

The Bull Case for the U.S. Debt Situation: Why America's Balance Sheet Is Stronger Than It Seems

  • Writer: John-Mark Young
    John-Mark Young
  • Jun 8
  • 5 min read

A few weeks ago, one of our excellent Financial Advisors, Jake Buckwalter, wrote a piece titled, The U.S. National Debt - Can it be Fixed? You can read that article here. The article inspired me, partly because I, too, have been thinking a lot about the national debt. There really isn't anything one person can do to try and fix this, and if there were one, he (Elon Musk) and the President are currently on a time-out with each other. However, it's my job to be optimistic and find the path forward even in bad situations. If the worst-case scenario plays out, it doesn't matter what advice I or Ray Dalio (the guy that got one big crash right and has been calling for more and more ever since) tell you, you're financially screwed! To be clear, economically and spiritually are two very different things, and that, my friends, is the actual safe harbor in the midst of the US collapsing because of its debt situation. Make sure today, yes today, that your relationship is right with Jesus Christ - that He is the reason your sins have been atoned - but I promise you, I highly doubt He will save you financially if the US government collapses, and that's ok - read Romans 8:28 - you probably already have and put it to memory like I have. So, back to being optimistic. It's my job to point you to the way that this all becomes ok for your kids and grandkids because most likely it's not a baby boomer problem. So, how does the famous Winston Churchill saying, "You can depend on Americans to do the right thing. But only after they have exhausted every other possibility," come to reality regarding the US debt situation?


As Jake mentioned two weeks ago, news headlines are flashing with figures like $36 trillion in national debt and a 120% debt-to-GDP ratio; it’s easy to assume the United States is on the brink of a fiscal crisis. But dig deeper, and you’ll find a powerful counter-narrative: a bull case for America’s debt position that draws from the strength of our national assets, global leadership, and future productivity.


1. America’s Hidden Balance Sheet: More Than Just Liabilities

Yes, debt is high. But we often forget the other side of the ledger. Only once in a conversation with my favorite private equity folks have I actually heard someone even bring this up. Why? Probably because this doesn't sell on CNBC and Fox Business. As Jake mentioned, our debt situation is like having a $75,000 income and a $500,000 load of debt. That's kinda crazy - although because the US is not a household and is a sovereign nation, some would argue it's not a good comparison because a sovereign nation technically never needs to save for retirement, pay down debt (just stop taking more out), amongst other significant differences. But then it's also like saying we have $1,000,000 of assets as well. It might be painful to release those assets, maybe they are better utilized (rent), monetized (oil & gas leases), or, if nothing else, just sold for housing (we are so short on housing and we need land to develop for housing). Just don't forget that all these assets below are significant in terms of their value.


The United States holds an extraordinary set of tangible and strategic assets:

  • Federal Land: Over 640 million acres of federally owned land, including energy-rich territories.

  • Infrastructure: World-class highways, ports, and energy grids.

  • Military Superiority: A global strategic asset that underpins international trade and reserve currency status.

  • Intellectual Property: The U.S. dominates in patents, innovation, biotech, and semiconductors.


These are real economic moats. They aren't all listed on a government balance sheet, but they add enormous intrinsic value to the country's long-term fiscal health.


2. The Coming AI Productivity Boom

According to analysts like Tom Lee of FS Insights and Dan Ives of Wedbush Securities, the U.S. is on the cusp of an economic transformation driven by artificial intelligence. In a few short years, you're going to have a Tesla Optimus that will wash your dishes, tidy your bedroom, mow your lawn, replace your oil, and maybe provide companionship to those who need it. This is real Star Wars-type stuff here, and I'm not kidding, it's gonna be here before my daughter graduates high school (she is a freshman). How many of you, like me, actually enjoy flying because you can be productive (I won't lie, sometimes entertained) while traveling. What if your hour to and from work commute was now productivity time, because of self-driving? Take a trip to a place like Phoenix, and you'll see the future in action as self-driving cars are already shuffling us around.


AI is not just a Silicon Valley talking point. It has real potential to:

  • Automate white-collar work

  • Raise GDP by 0.5% to 1.5% annually

  • Improve corporate margins and tax receipts


Much like the internet boom of the 1990s, AI could usher in a new productivity cycle that helps us grow out of our debt load.


3. The Dollar Remains the Global Reserve Currency

Despite America’s debt, the world still trusts the U.S. dollar:

  • It accounts for roughly 60% of global foreign exchange reserves

  • U.S. Treasuries remain the safest and most liquid assets globally

  • In times of crisis, money flows into the U.S., not out

This gives the U.S. an unparalleled borrowing advantage and flexibility that other nations simply don’t have.


4. Debt Service Is Still Manageable

Even with higher interest rates, debt service costs remain around 3.1% of GDP, far below levels seen in the 1980s. Much of our debt was issued at low interest rates and locked in for the long term, giving us breathing room and time to figure this out. This is not a crisis today as some would have you think (I'm looking at you, Rand Paul), but fiscal discipline does need to reenter the halls of Congress.


As inflation cools and rates normalize, the cost of servicing debt could stabilize or even decline.


5. Nominal GDP Growth and Policy Adaptation

Post-COVID fiscal numbers are distorted by extraordinary stimulus spending. As the economy normalizes, tax revenues improve, and nominal GDP continues to grow, the debt-to-GDP ratio could plateau or decline without drastic policy shifts.


The government also has options: spending restraint, revenue adjustments, or reforming entitlements. America’s adaptability is one of its greatest fiscal strengths.


In Summary: A Nation Positioned for Resilience

The debt is large, but so is the U.S. economy’s capacity to innovate, adapt, and grow. With unmatched assets, a dominant global currency, and the potential for an AI-driven productivity renaissance, the bull case for America’s debt position is real.


This doesn’t mean we ignore fiscal responsibility. But it does mean we can view our nation’s debt through a more balanced and hopeful lens—one that prioritizes growth, innovation, and intelligent policy over fear. Proverbs 21:5 tells us, "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty". I was in Atlanta a few months ago and, by way of chance, got to listen to a former Clinton finance cabinet member. He said, "You know how we balanced the budget under President Clinton? We just stopped spending more and let the economy catch up." Sentor Ron Johnson, is asking the right questions, how and why are we not able to return to a 2020 level of spending, considering the tremendous growth in tax receiopts we've seen since then? He says we need to sit down, go line by line, and spend time figuring this out, and stop passing bills we never read. Wow - passing bills you never read (because they are too long and given just hours before a vote) seems to be the definition of "everyone who is hasty comes only to poverty".


Isaiah 33:6, "He will be the sure foundation for your times, a rich store of salvation and wisdom and knowledge; the fear of the Lord is the key to this treasure"


Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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