AI, GREENLAND AND VENEZUELA AS BUBBLES SEAN FOO DISCUSSES WHAT ARE THE COSTS AND BENEFITS OF ACQUIRING GREENLAND FOR TRUMP, BESSENT

The US economy is imploding under debt and interest payments.

When it keeps adding bubble assets to its books, assets which cost a lot and give little or no  return, then that debt crisis is going to get a lot worse.

Greenland is just such a bubble asset along with Venezuela. 

In theory, both countres have commodities, oil, minerals, which can help the US economy. But in practise, they are far too expensive to extract and it will take decades if ever to bring them online. Long before then, the US will have collapses.

Morever, the US is deindustrialized and there is no sign of the major investments Trump promised or a revival of manufacturing.

In addition, the US GDP is being artificiallyinflated by an AI bubble to skewer the debt to GDP ratio.

Sean Foo looks at the significance of Greenland and  new Artic trade routes, the tariffs on the EU, whether the EU can hit back and how.

He suggests the EU can sell US  bonds to hit push up the US debt. That said, the EU is now dependent on US LNG

From media

The move to takeover Greenland just keeps escalating. Trump is threatening major tariff on his NATO allies while Bessent just mocked Europe as weak. All this is ominous for the dollar and the US economy as the gold price keeps climbing higher.

https://www.youtube.com/watch?v=2CEhdilKZAU

From media

Key Fiscal Indicators at a Glance

Indicator Current Status Projection Source

Debt Ceiling $41.1 trillion (July 2025) Next limit reached Nov 2026 CBO/CBPP

Debt Held by Public 99.8% of GDP (FY2025) 118% of GDP by 2035 CBO Jan 2025

Federal Deficit 5.9% of GDP (FY2025) 9% of GDP by 2035 Moody’s/CBO

Net Interest Payments $970 billion (FY2025) $1.8 trillion by 2035 Treasury/CBO

Interest vs Defence Interest exceeds defence Gap widening CBO

US Credit Rating (Moody’s) Aa1 (downgraded May 2025) Stable outlook Moody’s

US Credit Rating (S&P) AA+ (downgraded Aug 2011) — S&P Global

US Credit Rating (Fitch) AA+ (downgraded Aug 2023) — Fitch

US Credit Rating (Scope) AA− (downgraded Oct 2025) Stable outlook Scope Ratings

Dollar Share of FX Reserves 56–58% (2024–25) Gradual decline IMF COFER

Dollar Share of FX Transactions 88% Stable BIS

Gold Share of Reserves ~20% (2024) Rising IMF/ECB

CDS-Implied Default Risk ~1% (2025) Elevated near X-date Chicago Fed

Previous Debt Record 106% of GDP (1946) Surpassed by 2029 CBO

The View from the Gulf

https://blogs.timesofisrael.com/coming-reckoning-for-uncle-sam-why-americas-next-debt-crisis-will-be-different/