THE INTERVIEW: Trump's Big Beautiful Bill: Can the US keep borrowing? There’s always a price
THE INTERVIEW | Borrow Inflate Repeat: Big Beautiful Bill, Modern Monetary Theory and not Paying Back Debt?
In an interview with FOX 2, Oakland University economist Dr. Michael Greiner warns the U.S. may be on the brink of a debt crisis, fueled by persistent deficits, economic drag from tariffs, and the seductive illusion that the federal government can borrow without limits. "We’re essentially constantly borrowing," Greiner says, noting that while investors still trust U.S. credit, inflation is the inevitable cost.
FOX 2 - With the U.S. House narrowly passing the "Big Beautiful Bill" a sweeping proposal to extend tax cuts and curb federal spending, lawmakers are once again betting that economic growth will outpace the nation’s ballooning debt.
But one expert is warning that this fiscal optimism may be a dangerous illusion.
Dr. Michael Greiner, a business professor and economy expert at Oakland University, spoke with Hilary Golston.
He says the U.S. is already pushing the limits of its creditworthiness.
"We are consistently running these budget deficits right now where for every dollar that is brought in we’re spending almost two dollars," Greiner said. "That amount of spending means we’re essentially constantly borrowing to make up the difference."
The country is getting away with it, for now, he says because global investors continue to believe the U.S. will make good on its debts.
"They’re willing to invest in U.S. currency," he noted. "They believe the U.S. government is going to pay it back."
But that trust, he warns, could erode quickly.
"There’s this old saying that a crisis takes longer to arrive than you expect, but it happens faster than you expected it," he said. "We saw it happen in 2008 with the financial crisis… all of a sudden we had the failure of Bear Stearns."
While Trump’s plan leans heavily on tariffs as a revenue fix, Greiner says they "come with costs."
Tariffs are a two-edged sword. Are they bringing in more revenue? Absolutely. But they’re also a weight on economic growth," he said, noting a clear decline in business investment.
When asked about Modern Monetary Theory (MMT), a fringe-to-mainstream economic idea gaining traction in Washington, Greiner explained the logic, and its dangers.
MMT posits that because the U.S. issues its own currency, it can never truly "run out of money."
Proponents argue the government doesn’t need to pay back its debt in the traditional sense… it just needs to manage inflation.
"In theory, at least for the foreseeable future, America is never going to die," Greiner explained of the federal government. "They’re able to constantly refinance … that nut never needs to be repaid."
But he offers a sober warning: "Does this mean the federal government could just keep borrowing and spending forever? In theory, yes. But there’s going to be an impact… and the place you’re going to see that impact will ultimately be in inflation."
Whether that moment comes soon, or arrives faster than anyone expects, may be the next trillion-dollar question.
Senator Ron Johnson, a Republican from Wisconsin, departs the US Capitol in Washington, DC, US, on Wednesday, June 4, 2025. The Senate has begun deliberations over the President Donald Trump's massive "Big Beautiful Bill" that narrowly passed the Hou