Frank Giustra: US Debt, Midterm Elections and Shifting Global Order

By Finance News On Nov 8, 2026

The US midterm elections may have reshaped the political landscape in Washington, but they are unlikely to change what mining investor and Fiore Group CEO Frank Giustra sees as the country’s biggest economic problem: an unsustainable debt burden and a growing loss of confidence in the US dollar.

Speaking at the 2026 New Orleans Investment Conference during a fireside chat with Daniela Cambone, Giustra argued that neither political party has demonstrated the willingness to address America’s deteriorating fiscal position.

Instead, he believes continued deficit spending, rising interest costs and geopolitical instability are setting the stage for a broader monetary crisis — one that could accelerate the shift towards gold and other hard assets.

Ahead of the November 3 midterms, Giustra suggested Democrats were well positioned to make significant gains, potentially taking control of both chambers of Congress. However, he questioned whether a change in political leadership would make any meaningful difference to the country’s economic trajectory.

“Both parties, in my view, are responsible for the mess that America is in,” he said.

Giustra pointed to US national debt exceeding US$40 trillion and growing by more than US$2 trillion annually, arguing that successive administrations have relied on borrowing without addressing the underlying structural problems.

“They’ve created an inescapable trap that they can’t get out of,” he said, adding that deficits are unlikely to decline regardless of which party controls Congress.

While he acknowledged that some of US President Donald Trump’s economic proposals had merit, Giustra was sharply critical of their execution, particularly efforts to rebuild domestic manufacturing and the administration’s broader economic management.

He also questioned the sustainability of the country’s interest burden. US government interest costs have reached approximately US$1.3 trillion annually, according to figures cited during the discussion. If the average interest rate on government debt were to rise to 5 percent from approximately 3.6 percent, Giustra estimated annual interest payments could reach US$2 trillion.

In his view, that leaves policymakers with few options beyond further monetary intervention.

“I don’t see what choice they have,” he said, predicting another round of quantitative easing that could exceed previous programs.

A potential dollar crisis and the changing role of gold

Giustra believes the growing debt burden will eventually trigger a currency crisis, although he acknowledged that the timing remains uncertain.

He warned that governments facing mounting financial pressure could turn to financial repression to manage their liabilities, including capital controls, restrictions on savings rates and policies designed to encourage institutions to purchase government bonds.

Concerns were also raised about potential wealth taxes and changes to banking…