Now, if we do some calculation, with around 270 million adults, that’s roughly $1.35 trillion!!
And this is where I started thinking the US national debt has already crossed $40 trillion, up around $2.67T in just one year. The US is also running a deficit of roughly 6% of GDP, while Treasury yields are already much higher than they were a few years ago.
So the obvious question is… where does the $1.35T come from? Trump’s pocket? 
Taxpayers? Or are they simply going to print more money?
Trump hasn’t really given a clear answer yet. There has been talk around tariff revenue, but even that doesn’t seem enough to fund a payout of this size!!
If this actually happens, it could mean more money flowing into the economy and higher consumer spending in the short term.
But at the same time, more fiscal spending could mean more borrowing, more Treasury issuance, potentially higher yields and more pressure on inflation.
The US can obviously handle a lot more than most countries because of the dollar and the Treasury market.
But $40T of debt + a ~6% deficit + another potential $1.35T payout is definitely something worth watching.
At this point, I’m more curious about what this does to US yields, inflation and the dollar than the $5,000 cheque itself…
