Transcription
And look, you've probably heard the news. The new Fed chair, Kevin Worsh, takes over May 15th, and he's got a plan to quietly cancel the government's $39 trillion in debt. What nobody's telling you, though, is the exact same mechanism is about to quietly cancel a piece of your mortgage, too. And here's how it works. And here's what you do to make sure you're on the winning side of it.
You see, by the end of 2026, your savings account is going to have quietly lost real value while Wall Street gets richer. Your 3% fixed rate mortgage, the one that Dave Ramsey told you to pay off early, that's about to actually become the single best asset you own. And the grandmother in Toledo with $180,000 sitting in a Chase savings account at 0.1%. She's funding the whole thing. Nobody sent her a memo. Send her this video, by the way, if you happen to know her.
You see, for 17 years, you've watched bailouts get handed out like aggressively thrown parade candy to literally everyone else. I mean, banks got $700 billion in 2008. Auto got $80 billion in 2009. Airlines got $50 billion in 2020. Every time someone else got rescued while you paid your mortgage on time like a functional adult and got a complimentary tote bag of absolutely nothing. Now, Washington is about to bail itself out. And the same mechanism is going to bail you out, too. But only if you stop following the rules you were told to follow.
Because here's the part they don't explain on CNBC. Nobody at the Fed is going to log into the government's books and type zero. Nobody's going to log into your mortgage portal and do it either. That's not how they cancel debt. It's like this. Think of the dollar as a battery. The charge inside is the purchasing power. And over time, the battery, it loses its charge. Well, the dollar loses its power. That's inflation. The battery doesn't get smaller in size, it just holds less power. Same with the dollar. The number on the dollar stays the same. It just holds less power. In this case, purchasing power. It buys less. So, how do you cancel a dollar? You drain the battery. You strip the dollar of its purchasing power. In debt, it's just somebody else's dollar. Inflation is an equal opportunity power destroyer. So when you drain the charge out of a dollar, you drain it out of the debt, too. You do that by letting inflation run hot. That's how they cancel $39 trillion. And it sounds like quite a feat, but they've done it before, and they're about to do it again. And the same inflation that cancels the country's $39 trillion will cancel your mortgage too because both debts are written in the same dollars. Your mortgage gets cancelled as a byproduct. I mean, although you aren't the direct target of the government bailout, you are collateral damage in a good way.
There are three moves to make this week and you can make all three. And we'll start here because this is what Worsh inherits on day one. The US government owes $39 trillion. That's not the scary part. The scary part is the payment schedule. In 2025 alone, $9.2 trillion of net debt rolled over. Now, imagine if your mortgage reset every year. I mean, whatever rate was on the street that month, that's your payment for the next 12. So, if rates were low, then you can breathe and you can sleep at night. If rates are high, you got to sell the car. That's Washington right now every single year. And here's the receipt the Congressional Budget Office just published. Interest on the national debt is on track to become the fastest growing major line item in the federal budget over the next decade. Not defense, not Medicare, not Social Security, just interest. So what do you do when you've got that much debt and the payment keeps resetting? You don't pay it off. You can't. The math doesn't work. You do what America did last time. You repress.
Now, repress or repression, this is when the Fed quietly holds interest rates lower than inflation or in reality, the Fed speeds up the batteries leak by charging the battery slower than it drains. And what's charging it? That's the interest the bank is paying you. That's the charge. So, every year you lose a little more power than normal without noticing. Meanwhile, the government borrows more fresh batteries and pays them back later with drained ones. Just like your mortgage, you initially borrowed fresh batteries, and each year you're paying back the bank with weaker and weaker batteries. Nobody votes on it. Nobody passes a law. It just happens because the Fed controls the leak.
Here's the thing about debt crisis. We've seen this movie before. In the decade after World War II, in 1946, the federal debt hit 106% of GDP, meaning we owed more than the entire country made in a year. By any standard, the United States was broke. Every newspaper economist said we'd default for the next 40 years. Well, we didn't default. By 1974, that number dropped to roughly 30%. Our debt was 30% of GDP. We didn't pay it off, though. The Treasury paid it off on schedule with weaker and weaker batteries. The bond holders, they got every dollar they were promised, but those dollars, they just didn't buy much by the time they got them. And here's how it works. The Fed held short-term rates at 1 to 2% while inflation periodically spiked above 10%. The batteries were leaking faster than anyone could charge them. There was a rule on the books called regulation Q that literally capped what banks could pay you on a savings account. You couldn't even try to charge your battery fast enough. Pension funds and insurance companies got steered, not forced, steered into holding treasury bonds at yields that couldn't keep up with the leak. And this isn't a conspiracy. This isn't Matt yelling at the Fed. No. BlackRock, the biggest asset manager on the planet, published a paper in 2025 literally titled financial repression past and future. The Richmond Fed has a whole retrospective on regulation Q. Ricardo Ree, a Colombia economist, wrote a working paper called Financial Repression in the 21st century. You see, the smartest money in the world is saying it out loud. They're talking about it. This is the playbook.
Savers. In the 1950s, they watched 30 to 40% of their real wealth quietly drain away across a single decade. The bank never sent a letter. The batteries just held less power every year. But if you were holding a fixed rate mortgage tied to a real asset, you woke up rich. You borrowed fresh batteries and handed back drained ones. Same number, a fraction of the power. The bank took the loss. You kept the house. And if you're sitting on a 30-year fixed rate now, this is where you start to smile.
So, let's do the math on your actual house. You've got a $300,000 mortgage at three and a quarter percent. Inflation just hit 3.3% in March. Biggest one-month spike since 2022 thanks to the Iran war putting gas prices through the roof. The Fed funds target range sits at 3 and a half to 3 and 3/4. Worsh said he wants to cut anyway. Your mortgage payment is fixed. Your income isn't because inflation doesn't just raise prices. It raises what you earn, too. If you own a small business, you get to charge more for your product or your service. Your revenue goes up. Your mortgage payment stays the same. If you're on salary, you get a cost of living raise. Maybe not fast enough, but you're earning more dollars every year because of it. Your mortgage payment stays the same. If you own a rental property, your rent collection goes up every year. Zillow says so, the market says so. Your tenant already knows it's coming, and your mortgage payment stays the same. The income side of your life moves with inflation also, just like your expenses. But your biggest expense, the mortgage, does not. That gap between what you earn and what you owe, that gap, it gets wider and wider every single year in your favor. That's your mortgage bailout. Over 10 years of even moderate inflation, the real weight of that monthly payment shrinks roughly 20 to 25%. Over 20 years, that payment is half what it was when you signed the papers.
In 1995, when savings accounts paid 5% and inflation was steady, sure, pay off the mortgage. It made a lot of sense then. In 2026, with the Fed actively trying to inflate away $39 trillion in government debt, accelerating your mortgage payoff is voluntarily giving back the gift that was given to you. You're handing the bank fresh batteries back while the Fed is trying to drain them for you. It feels responsible, but the math says you're the one getting drained, and you might as well go move in with the 62-year-old grandmother in Toledo.
Which brings us to this piece. Even financial advisors won't say out loud, financial repression. It requires a losing side. It's math. You can't shrink the real value of debt by 70% over 28 years without somebody eating that 70%. That somebody is savers, cash holders, CD buyers, money market people, the person who did everything right. The Fed needs you to earn less than inflation. Let me say that again because it's the sentence nobody is saying. The Fed needs you to earn less than inflation or the math doesn't work. If your battery charges faster than it leaks, the math doesn't work. It doesn't pan out. The debt crisis doesn't get solved.
And don't take my word for it. Take Worsh's. In his prepared remarks to the Senate Banking Committee on April 20th, 2026, like just a few days ago, this is his exact quote. He said, "A rigid 2% inflation target is asking for trouble." Translation: locking inflation at 2% means the batteries don't leak fast enough. And if the batteries don't leak fast enough, the $39 trillion of debt never gets smaller. Worsh is saying the quiet part out loud. He wants more inflation. He wants the batteries to leak harder and faster. The new Fed chair under oath saying on the record that tolerating more inflation is fine. That's not a rumor. That's his own testimony. Look it up.
Meanwhile, the smart money has been positioning for this since 2022. I've been talking about it here on the channel just as long. Hard assets, fixed rate, long-term debt to buy them, cash flowing real estate, the kind of fortress that grows because the battery leaks. The average saver still doing what their parents did in 1985. Six months of expenses at Chase, bonds they bought in 2022 when everyone was screaming about inflation. Now locked in while rates drift. They've got CDs, a few mutual funds they don't understand, and a financial adviser who tells them once a year everything looks great. It's all getting quietly harvested the entire time.
Because here's the absurd part. Right now, if you hold $100,000 in a standard big bank savings account for an entire year, you will earn roughly $10 in interest. That is enough to buy exactly one medium iced coffee at Starbucks. Not a venti, a grande. Meanwhile, the bank takes your $100,000, lends it out for mortgages and credit cards at 7 to 24% and buys themselves a yacht. That's active defense versus drift. That's the difference between a war chest and a dresser drawer full of statements nobody reads. I haven't accelerated a mortgage payment in 6 years. Not since this has been going on. Not one. Because I watched the Fed tell me in published papers, in Senate testimony, in their own balance sheet reports exactly what they're about to do. They told us and now they are doing it right now.
So what do you actually do with this? Three moves. You can make all three of them this week. Move number one, pull your amortization schedule tonight. Four minutes. It's on your lender's website. Log in, find the amortization tab. Look at year 10 and year 20 of the scheduled payment. You'll see that they're probably the same. If your mortgage rate is below 5%, and for most of you it is, do not accelerate payoff. Do not send an extra principal. Don't send extra payments. Do not refinance into a 15-year. Let the leak run. You're on the winning side of it because you do.
Move number two, check your savings rate against inflation this week. Pull your last bank statement. Look at the interest line. If you're earning 0.1% at Chase, BFA, or Wells, while inflation runs at 3.3%, you're currently funding the national debt bailout out of your own checking account. High yield savings accounts at online banks are currently paying somewhere between 4 and 5% APY. I've put together the list of the ones that I use at stackmybanks.com. I'll put that link in the description for you.
Move three. If you've got equity sitting in your house, learn how to access it without losing the bailout you just earned. Go to houserichcashready.com. It's the resource I put together that walks you through the three ways to pull energy out of your home while the leak runs. HELOCs, cash out refinances, and for some of you, a reverse mortgage. Each one has a different use case. Each one has a different trap. The point isn't to rack up more debt. The point is to move your stored charge out of a leaking battery and into one that actually holds it. Cash flowing real estate, hard assets, the kind of battery that fills itself. It charges itself faster than the Fed can leak it. That's how you turn the equity the Fed is quietly gifting you into a war chest you can actually deploy.
So there are two roads from here. Road number one, you keep doing what you were told. You accelerate the mortgage. You keep your cash at Chase earning 0.1%. And you wait for somebody on the news to tell you it's safe. And on May 15th, Kevin Worsh starts a process that quietly harvests every dollar of your savings for the next decade. Or road two. You look at the 1946 playbook. You read the BlackRock paper. You read Worsh's testimony. You position yourself on the winning side, the side the Fed is actively trying to help. And you ride the same mechanism that's about to cancel $39 trillion in government debt. Your mortgage, small potatoes, that's easy. And doing nothing. This is the one road that guarantees you lose.
You see today's system and the playbook that they're running, it punishes the W2 employee that's diligently saving their money, the responsible one, the hardworking one. It punishes the person on a fixed income that's worked their entire life and has built that for themselves. It punishes them. It punishes people that avoid long-term debt. And it doesn't care how you feel about it or whether you agree with it or not. I mean, if you get nothing else from this, don't ignore that the Fed is doing all of this math in public. They're not hiding it. You don't have to take it from me. BlackRock wrote the paper. Richmond Fed published their paper. Worsh testified on the record. The playbook, it's out in the open. The math, it's on the chart. You could Google it in 10 minutes.
So, here's a question. Why doesn't your banker ever mention any of this? Why doesn't your loan officer, the guy who sold you your mortgage 5 years ago, why don't they ever pick up the phone and say, "Hey, about that uh 3% fixed rate you locked in. Here's what it's actually worth now, and here's what you can do with it." Why don't you ever get that call? Well, because they've been told by their boss not to make it, along with many other things. And it's not because they don't know. It's because the minute you find out what they know, the math flips in your favor and it flips out of theirs. And that's exactly why I pulled this video out here for you to watch next. A former loan officer actually broke the silence on camera and what he said about how banks look at your fixed rate mortgage. It's going to change the way you walk into your next conversation with them. It's the other half of this story. The part where you stop being the battery they're leaking and you start owning the ones that charge themselves. God loves you and so do I. Take care.