There are three messages. Do you see them?
Three Messages
Gold does not believe the Fed is under control
Gold does not believe Congress is under control
Gold does not believe Trump is under control
And neither do I.
Think!
If you think either Congress will do anything about soaring deficits, then think again.
If you think DOGE will do anything about soaring deficits, then think again.
If you think Trump will do anything about soaring deficits, then think again.
If you think tariffs will offset spending that Trump demands and Congress will deliver, then think again.
If you think the Fed will stop monetizing the debt, then think again.
Buying Votes for a “Big Beautiful Bill”
Trump will buy as many votes as it takes to get support for his “big beautiful bill”.
Number one on the table is restoration of State and Local Tax (SALT) deductions. This benefits Democrats and Republicans in Big Blue states, especially New York.
The Committee for a Responsible Budget estimates full restoration of SALT would cost $920 billion over 10 years.
The TCJA tax extension will cost $3.9 trillion.
Why stop there?
Trump wants to but more votes with no tax on tips, no tax on Social Security benefits, and new deductions for interest on auto loans.
No DOGE to the Rescue
To pay for all of this DOGE has come up with $150 billion in alleged savings of which only about $12 billion is real.
For discussion, please see How Much Money Has DOGE Really Saved, and Where Will it Go?
Let’s do some fact checks on DOGE claims and reality.
Trump Promises $1 trillion in Defense Spending for Next Year
Also note Trump Promises $1 trillion in Defense Spending for Next Year
Even bigger budget deficits are now in store due to the first $1 trillion defense budget.
Meanwhile, the lies that it will pay for itself continue along with praise from the cult.
For discussion of the truly absurd, please see Lutnick Says Tariffs Can Eliminate the IRS and Balance the Budget
Lutnick: “We’re going to make the External Revenue Service replace the Internal Revenue Service.”
And finally Republicans Have One Chance to Reform Medicaid, They Will Blow It
Republicans, including Trump, won’t fix anything if it costs votes.
There is no political will by Congress or Trump to do anything about deficits out of control.
If you think we are headed for a currency crisis, then you are thinking correctly.
Don’t ask me when, because no one knows. But the message is unmistakable.
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Views expressed in this article are opinions of the author and do not necessarily reflect the views of ZeroHedge.
