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$36T of public debt. This number cannot just go away, you need to do something about it. And just about the only things that you can do are:
  • Default on it.
  • Pay it back.
  • Devalue the unit to a point where it doesn't matter.
A formal default with cancellation is not going to happen.
To pay back debt you need to be profitable. This means austerity measures if you still raise funds through taxation. And austerity to pay down debt is doubly unpopular because it's not buying the people anything directly useful, like healthcare.
So you have to ask the question: Can you be more profitable with tariffs than with income tax? What do tariffs do? Dampen imports and stimulate domestic production. So it causes further income from tariffs to reduce but since we got rid of income tax, the Treasury is no longer benefiting from a boosted economy.
So I think not, my guess is the number don't add up and to actually burn down the debt you will need a period of both taxation and tariffs.
And then there's of course the way of inflation. Print enough money and $36T might actually go down in purchasing value, making it easier to pay down. I expect to see that in the mix as well.
I don’t know, but hasn’t Trump been through many bankrupcies for different sub-organizations in his career? He knows the power of bankrupting and shedding debt because he did it regularly. Maybe this is one reason he was chosen to be the candidate the first time.
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