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Posted on 05/26/2025 3:01:57 PM PDT by texas booster
Donald Trump is the first U.S. President in over 30 years who is seriously talking about reducing the country’s budget deficit, trade deficit and yes, the national debt, which has ballooned to over $37 trillion.
However, he must follow a specific formula, otherwise, it will end in tragedy, argues Victor Davis Hanson on today’s edition of “Victor Davis Hanson: In His Own Words:”
“Jermone Powell, the head of the Fed, will not lower interest rates even though there's been a good jobs report, a good inflation report, a good corporate profits report. GDP is gonna be evaluated, apparently, upward and there's been low energy cost. That mortgage is still 4.25% Fed rate to 4.5%. And that means mortgages are still 6.5%, 7%. And that housing market is slowing as a result.
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And the question that we all have now: Is cutting taxes on tips, is cutting taxes on Social Security, is cutting taxes on first responder, etc.—all of which Trump has mentioned—is that really stimulus as opposed to, say, accelerated depreciation investment for businesses? I don't know the answer. But I do know, as a historian, that if you do not cut the deficit and the national debt and you have bond raters like Moody's or the Fed that will not lower interest rates, you're going to be in a crisis.”
00:00 Introduction: The Debt Crisis Unveiled
00:59 Moody's Downgrade and Economic Indicators
02:19 Trump's Fiscal Strategy: Promises and Challenges
05:10 Historical Lessons on Debt Management
06:57 Potential Solutions and Final Thoughts
07:59 Conclusion and Call to Action
Solutions? How about firing Congress?
FR Index of his articles: Victor Davis Hanson on FR
Town Hall: Victor Davis Hanson on Town Hall
American Greatness: Victor Davis Hanson on American Greatness
His website: Victor Davis Hanson
Please let me know if you want on or off this new VDH ping list.
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Content created by the Center for American Greatness, Inc. is available without charge to any eligible news publisher that can provide a significant audience.
This all depends on the Good Faith of The US Taxpayer and he is tapped out as many are paycheck to paycheck so what is next?
The country does not have the political will to do what has to be done. The Democrats see no problem letting the country rot away. The Republicans are simply worthless and weak.
Like Reagan: Produce more jobs and problem is solved.
Those numbers are based on 1.8 GDP growth. Completely worthless projections.
1.8%. Trump isn’t Obama.
i agree that Democrats are willing to let the country die. But Republicans have a bare majority in the House and Senate. So Repubs have no power. So, GAME OVER. The criminals in DC won.
“Completely worthless projections.”
Please tell us the correct projections.
For starters you plug in 3%, 4% and 5% growth because they are the more realistic projections when the tax cuts and deregulations kick in.
The fact is we can cut all the spending out of the budget and that would be great but the only way we are getting out of this mess is by growing faster than the debt.
So go scream about crap you know nothing about and trust the laughing stock that is the CBO.
Tell the Federal Reserve to pack sand, send in the troops and appropriate anything worth of value and execute anyone working there. Print our own monies as proscribed in the US Constitution. We can defend our homeland, we can grow our own food, eff the rest of the globe.
Good grief. Stop drunk-posting.
Cancel the Presidential elections, appoint an elections board, jail any liberals whether R or D’s. JD Vance and others can control things until the monetary system is stabilized, and it is against the law to stand for Socialism, Communist, DEI, or another country. Sounds brutal doesn’t it? Do you want to be free citizens within your own country or be slaves and controlled by the Rothchilds/NWO/Satanists? Until they are physically eliminated, we haven’t a chance.
The lack of bond buyers would normally require higher interest rates in a balanced market. However, we have a federal debt limit or government shutdown in the wings. That changes everything.
Ultimately the Fed will start a major QE and put the printing presses on full speed ahead, which will devalue the dollar and cause true inflation.
The Trump plan is to cut debt by raising revenues on five fronts. (1) Increase tariff revenue to the federal government. Yes, President Andrew Jackson paid down the federal debt with tariffs long, long ago. (2) Increase the US GDP by creating more US jobs (less regulation, trade deals that open foreign markets, etc), AKA individual taxpayer and business taxes collected by the IRS. (3) Increase foreign investment in the US by having foreign companies build US manufacturing and service facilities, creating construction jobs and material sales. (4) Implement DOGE savings to reduce federal budget costs. (5) Lower the interest rate on US Treasury bonds when they are rolled over so that interest payments (which is a huge part of the federal budget) go down.
And yes the last one is the one that the Fed does not want to do as it would help Trump and the Fed doesn't want to do that, but they will be forced in to QE soon enough.
Yes there are “tax cuts” but they are either trivial or just maintaining the status quo.
Well said. The tax cuts, or continuation of current tax rates in the bill provide much needed stability for investors.
And they should drop and give us twentee
Unmitigated hogwash!
IMHO...
That sums up pretty much everything to a T.
Now examine the other side of the equation
For every tax cut, there is a projected result in the economic activity of the individual, business, corporation etc…receiving the benefit of keeping more of the money earned or produced
Economic growth and increased tax and tariff revenues will be collected
And remember, they are talking 10 year terms here for these figures
Try to tax the way out of debt?
Half of Americans pay no taxes but collect “ refunds” and credits
Squeeze how much more from the other half and watch the economy grow?
Trumps goal…cut fraud waste and abuse, cut spending that provides no real benefit to America , let individuals and producers of wealth and jobs keep more of their money, attract investment into the American economy, grow our way out of debt
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