The David Lin Report · Wednesday, July 8, 2026
Rick Rule argues that the Federal Reserve's ability to intervene in a financial crisis is significantly diminished compared to 2008 due to the ballooning US national debt. He points out that with debt-to-GDP at 120%, the Fed might be forced to print money if intervention is required, leading to high inflation.
“Except that in 2008, the, uh, the aggregate debt of the US federal government was about 40% of GDP. Now it's 120% of GDP.”
“The market might now look at the Fed and say, you don't have the ability to do what it takes.”
“And if you print, that's going to be wildly inflationary, not merely inflationary.”