Core Viewpoint - Goldman Sachs indicates that Trump's spending plan cannot prevent the U.S. national debt from rising to "unsustainable" levels, with current debt levels only second to those during World War II [1][2]. Group 1: Debt and Interest Payments - The U.S. will need to pay $1 trillion in interest on $36 trillion of national debt next year, which exceeds the total spending on Medicare and defense combined [1]. - The current path of debt accumulation is unsustainable, with primary deficits far exceeding normal levels, and the debt-to-GDP ratio approaching post-World War II peaks [1][2]. - Interest payments on the national debt are projected to become the second-largest government expenditure after Social Security next year [1]. Group 2: Fiscal Policy and Political Challenges - Goldman Sachs warns that if debt continues to grow, the government will need to maintain historically rare and politically challenging fiscal surpluses to stabilize the debt-to-GDP ratio [2]. - The Congressional Budget Office estimates that the Republican spending bill will increase the deficit by $2.8 trillion over the next decade [2]. - The complexity of increasing taxes or cutting spending poses significant political challenges, making it difficult to address the debt issue effectively [2]. Group 3: Potential Consequences of Inaction - Delaying action on the debt issue may force Congress to make more difficult decisions in the future, potentially leading to extreme austerity measures that could negatively impact GDP [2]. - There is a risk that politicians may resort to excessive money printing to pay off debts, which could lead to hyperinflation and social unrest, as evidenced by historical precedents [2].

Core Viewpoint - The U.S. Treasury Secretary emphasizes that tariffs and budget are interconnected, suggesting a holistic approach to fiscal policy [1] Summary by Relevant Categories Fiscal Outlook - It is believed that the deficit size will be lower in 2025 compared to the previous year [1] - By 2028, the ratio of U.S. debt to GDP is expected to stabilize [1] Political Sentiment - There is sympathy towards deficit hawks, indicating a recognition of concerns regarding fiscal responsibility [1]

Core Viewpoint - The U.S. Treasury Secretary believes that the debt-to-GDP ratio will decline next year [1] Group 1 - The statement reflects confidence in the U.S. economy's ability to manage its debt levels effectively [1] - The anticipated decrease in the debt-to-GDP ratio suggests potential improvements in fiscal health [1]