The response of the bond market, with yields increasing following Trump's election, reflects investor sentiment anticipating greater budget deficits and debt accumulation under his new administration.
Given Trump's promises of tax cuts totaling $10tn and projected interest costs of $1tn, the fiscal implications indicate a stark increase in national debt that outweighs potential revenue from tariffs.
Historically, Republican presidents have pledged to cut spending to counteract tax cuts, yet this pattern of overpromising and underdelivering has repeatedly failed to materialize.
The formation of the new Department of Government Efficiency (Doge), headed by prominent figures like Elon Musk, signals a continuation of past practices with little expectation of significant change.
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