Appearing on CNBC to explain the big picture economics, Treasury Secretary Scott Bessent outlines how debt and deficit hawks are seemingly blind to the need for GDP growth to deal with federal spending.
From the outset of President Trump’s MAGAnomic policies in his T-1 and T-2 platform, growing the U.S. economy, expanding the size of the GDP is a key facet to dealing with debt and deficits. President Trump has always promoted economic policy that expands the size of the pie rather than focus on making smaller portions of each spending slice.
Secretary Bessent also explains the current status of the tariffs as delivered by the Trump administration. The next few days are exceptionally busy with incoming requests to renegotiate trade terms, and avoid countervailing duties. WATCH:
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Big picture: Trump, Lutnick and Greer are now transmitting 1. Baseline tariffs (10-20%), 2. Reciprocity tariffs (trade imbalance) and 3. Section 232 tariffs (ex. Steel and Aluminum). Countries are notified and their tariff rate begins on August 1st.
Summary: Enjoy your hyperinflation.
Bless your heart.
We’ve been down this road before during President Trumps first term. We did not experience the inflation that experts decried would be the result of those tariffs then, as it will be now.
You are too kind, RF.
The people of the South are very hospitable & kind. “Bless your heart” is just their nice way of saying you’re stupid!😉
I use “bless your heart” quite often here, in my case it is much harsher than “stupid”.
It is the ladylike way to say FU.
LOL.
Not kind, just passive aggressive, which is why it’s uttered much more by women than men.
🙄
Or as the kids say, “retard.”
I have slight insight into the models underlying the opposing points-of-view on the ultimate impact of the current tariff policy set. So I am not anchored to any outcome rock on this. I get the overall thrust of accelerated GDP growth generates income (tariffs, taxes, etc.) that pays down debt. It’s a credible argument – though none of us (so far as I have read here) know the actual predictive models and data being used – on any side of the matter.
I do know this: the underlying assumption that the scale and breadth of tariffs (and other economic policies) between the two terms is similar and therefore should produce similar outcomes is not accurate. PDJT has gone “all in” this time around in a much more comprehensive way that addresses much broader scope of application to the challenge. In short, I do not believe a glib “past is prologue” unsupported by comparison and deeper details is merited.
That said……
The tariffs are just one piece of a larger, IMO integrated, strategy. I am also not privy to the game strategy assumptions underlying much of the modeling when applied on a global scale. I do know this: PDJT’s fundamental foundation that foreign countries have been deliberately exploiting the US consumer and treasury for decades is correct. Opposing political forces have never really advanced an alternative strategy.
Roll the dice.
You may roll the dice. I am sure President Trump has “gamed” it out. With Sundance’s analysis of first term Tariffs, we can be sure that the result will be a GOLDEN AGE OF AMERICA.
Whether you’ve created “models” or not there’s a simple philosophy in Business and that is to generate more revenue then your expenses. You must look at sustainable growth opportunities, while simply looking at the expense column and slowly bring your costs down. Yet if massive revenue is incoming it’s always difficult to deploy it fast enough. This is why companies sitting on war chests acquire new companies or technologies – to drive more growth. Yes, you can become fat cats, but the solution is ALWAYS revenue. Without it, you have cashflow issues and eventually become bankrupt. But revenue will delay things long enough to allow you to cut the expenses that won’t hurt the business growth. Burn the candle on both ends – without inhibiting your growth opportunity… they are doing this. Look at USAID for instance. The critique of what has been happening in 5-6 MONTHS is out of control… keep your eye on the big picture – who’s done anything close to this in this timeframe. While being attacked on all fronts BY THE WORLD. People need perspective… live your best life, we are witnessing the impossible. Enjoy lessons from a businessman and apply them to YOUR OWN LIFE instead of being passenger seat critics.
” then your expenses” It is “thAn your expenses! What the “H” is so difficult about the “then, and than” words/meanings, that SO many otherwise excellent and knowledgable posters, ignore their meanings?
lol… thanks. Some people are more interested in grammar than the content— which is where the weight is. But I digress. Is this better?
Shawshank you now have a Redemption regarding your proper use of the English language. BTW – I would have used “than” but “then” is often used just like effect or affect.
that was really important, it will enlighten for the nex ten annuala\s——-ohn s’cus me years.
Youre correct, butt in today’s current climate with textin, voice textin, being all thumbs hitting wrong keys on accidnet, I think most of us understand and are more understanding of the grammatical issues in today’s communications. 😉 just funnin’ around….
Business and governments with their own fiat currencies and central banks along with fractional reserve lending are two entirely different things.
Are these the same models the climate gurus use or the CBO uses? Asking for a friend.
“I am also not privy to the game strategy assumptions underlying much of the modeling when applied on a global scale.”
If you really want to understand the strategy, work your way through the following paper by Stephan Miran. It’s very technical and a hard slog if you’re not versed in global finance, but just the executive summary is worth it.
https://www.hudsonbaycapital.com/documents/FG/hudsonbay/research/638199_A_Users_Guide_to_Restructuring_the_Global_Trading_System.pdf
“A free people should promote such manufactures as tend to render them independent on others for essentials, especially military supplies,” said President Washington in his first message to Congress.
“The first major bill passed by Congress was the Tariff Act of 1789.”
Did Tariffs Make America Great?
https://americanfreepress.net/did-tariffs-make-america-great/
Did the post-civil war tariff make America great? Well, you have to look at tariff, excise taxes, and monetary policy in the Gilded Age. As Buchanan admits in the linked piece
“Commodity prices fell 58%.”
So if you were a farmer things didn’t look so great. That gave rise to the populist movement and William Jennings Bryan “cross of gold”.
If you recall, Trump 1.0 did provide relief to farmers to offset the commodities tariff bite.
Yes they did!
If you are referring to the USA, this exact same scenario played out in Term 1. Screams of Inflation. Result was no inflation. This has been playing out in Term 2 and again no inflation. Hyperinflation was under Biden. Facts don’t lie. Look it up.
Yup, go look at the data right before “the world ending” – best economy ever: almost non-existent inflation, wages highest ever.
PDJT will do it again, but even better.
I suspect he is well aware of this fact, and is simply trying to muddy the water – seems there is more and more of that here lately – surely a tribute to the honesty and effectiveness of this site.
Yes. Dilute us with paid Communist bots. Maybe the only thing they were ever good at was propaganda. And they are not as good at that as they used to be. Or maybe I just realized that anything on the Democrat News is a Lie.
Realization is a good thing.
Nope
So speaks the Bluebird of Paradise.
Enjoy your hyperventilation Bob!
This is what happens when you are so educated that you think you are too smart to observe reality. You can game it all out in your mind, and that’s all you need to do.
The obvious escapes them.
Enjoy being deservedly mocked as a loser.
We had four years of that with that poseur Biden. Remember?
😂 troll or new here
Yes
Mr. Bishop is both.
Never stood a chance, poor guy.🤣
Summary: Enjoy your washed out brain due to listening to and believing what you hear from your teachers in the “drive-by-media”!
Bishop Bob, your sermon is flawed and not winning any converts.
Maybe you should switch to the climate change myth and find another congregation to mislead.
I thought it was your hyperinflation in 2021 when prices went up 30-40% and thus destroyed a third of what I had saved for a lifetime.
Don’t drop your dirty diaper in here and run away.
Either clean it up or stick around and defend it.
Bomb thrower. Same kind of people who vandalize Teslas. Logic doesn’t factor into the process.
Definitely a “drive by” commenter.
A tariff removes dollars from the economy. Less dollars means deflation. Deflation has problems of its own as it tends to reduce current consumption and hence GDP. Of course, the OBBB increases gov’t spending which injects dollars back into the economy. So net effect is not the same as just considering tariff independently. That’s not to say the impact of tariff affects all consumers the same.
How so? Tariffs levied create incoming dollars (that pay down debt or could be reinvested) or they stop the out flow of our dollars due to imbalances. Yes/No?
Your denial of recent history is stunningly sad.
I think you’re way off but please share why you think hyperinflation is eminent.
Derp.
Secretary Bessent – another nice surprise of a Cabinet pick.
Wasn’t a surprise. Solid pick from day one.
100%
The man is smart as a whip, impressive in his delivery, calm as a cucumber & nice. That’s an amazing fourfecta!
We are America. We always had the ability and ambition to make many many more pies. What we’ve always lacked is honest leadership in Washington DC that wants to unleash the growth potential, for Americans.
Again and again and again, Thank You Lord for giving us this President at this time. 🙏❤️
100% on top of 100%
What we now lack is willing workers. Too many have been dumbed down so much that they have no idea what constitutes productive pursuites (and they all have bent necks from looking at their ‘dumbing down devices’.)
Way too many welfare/transfer payments to non-workers from taxpayers.
Way too many of our soldiers overseas supporting other countries.
A bloated central government doing things the states should be doing (or not doing) for themselves.
Term limits for Congress of 12 years. Minimum age 35years, maximum 85. Natural born citizens only. No dual
country citizens. Maybe judges too?
Outlaw deficit spending with a balanced budget amendment.
Outlaw corporate and foreign contributions and lobbyist payments/gifts to elected officials.
Not true. Many are bored and have no outlet for creation. Just like the kids in school whose work is not challenging. Good paying manufacturing jobs will attract a lot of workers, American workers. As will all the ancillary jobs that get created adjacent to the factories.
Do we have to wait for August 1st? Giving too much time for alternate plans.
If President Trump says we wait for August 1st, we wait for August 1st.
There is a reason.
Time is a luxury we do not have in abundance.
This reality is does not escape President Trump.
This is a step in the process, and, as it is with all successful processes, all of the steps must be taken.
Let’s see what happens.
“The Democratic party blew out the deficit in 2020.” (direct quote from Bessent)
Someone needs to remind him who was President in 2020.
The democrats unleashed COVID in order to steal the election by artificially crashing the economy in a nation where the majority of voters tend to vote with their wallet, ascribing the state of the economy (rightly or wrongly) to the incumbent.
The later part of that statement is US politics 101.
On the money mate. They did not care how many lives they killed and ruined and businesses destroyed.
Who was in charge of the House where all spending bills happen.
No one needs to remind him.
👉From Saturday Night 🌙 Live, “Could it be Satan” (Piglosi and Chucky)..👈
Another whatabout gem from you. Thanks. As if the Biden admin wouldn’t and didn’t in fact do a thousand times worse starting the next year. Elon and his DOGE gang weren’t hunting waste and fraud from 45. The waste and fraud came from the Democrats. You know what’s an even bigger waste? Any at all government subsidies for this Green New Scam. Sorry, Elon. You bet on the wrong horse when you joined the Climate Cult.
The Democrats enacted a plan to destroy the economy and country and to steal an election. President Trump spent the money to keep the economy afloat. Biden/Obama accelerated the decline and spending/stealing. If President Trump would not have won, the USA would make Canada and the EU look prosperous. Us Treepers would be able to talk to each other in person at Gitmo.
Tariffs Made America Great
The economy has often soared under Republicans who protected domestic industry.
https://www.theamericanconservative.com/tariffs-made-america-great/
You and Betsy are absolute Treasure Troves, Colkitto. Thanks for all you do.
Live your best day! (h/t to Sundance)
Ty my dear friend.
Supporting PDJT & America First is in my DNA. Pat was my former Clan Chief, now its PDJT who is Scots by way of his dear mother Clan MacLeod. You know Pat & PDJT share much the same lineage. I always though that was pretty cool.
I have a dear friend in NH who is Clan MacGregor and at 75 wants to go back home to PEI and live out his final years. He might get there this summer.
Wasn’t this the way the U.S. secured her revenue before . It seems to be the case…
See https://www.archives.gov/milestone-documents/16th-amendment
Of course, it was signed into law under Woodrow Wilson’s watch. 1913
Woodrow Wilson was the president of the United States in 1913. He served as the 28th president from March 4, 1913, to March 4, 1921.
Wilson took office after winning the 1912 presidential election, where he defeated the Republican candidate, incumbent President William Howard Taft, and the Progressive candidate, former president Theodore Roosevelt.
Note the Splitter. This was done in 92 & 96 since our enemy the Nazi Globalists knew there would be a large resistance within Heritage America to the economic treason of Free Trade. They planned accordingly.
Alot of great cliches by Sec Bessent… “winding the spring”, “tariff derangement syndrome”
Can’t wait till we get him at the Fed, and get rid of that BlackRock, EU, globalist central bank servant Powell out.
Just going to leave this here, a 2001 analysis of the Reagan economic policies which were quite similar to what the Trump Administration is doing and will yield similar (and likely even better) results thanks to the tariff policies.
The Left has spent DECADES maliciously rewriting and trashing the success of Reagan’s economic policy and they are freaking out today because they know it’s going to happen again (just like the pre-pandemic Trump economy) and this time they likely won’t be able to stop it by ginning up a panic over a stupid virus.
*******************************************************
The Real Reagan Economic Record: Responsible and Successful Fiscal Policy
https://www.heritage.org/taxes/report/the-real-reagan-economic-record-responsible-and-successful-fiscal-policy
>> “and this time they likely won’t be able to stop it by ginning up a panic over a stupid virus.”
There always was, still is, and always will be the start-a-war tactic; the virus tactic is an outlier.
Reagan’s policy helped grow the economy. The Democrat controlled Congress then took the additional tax money added and spent more than what was coming in. Anyone else remember Reagan’s fight to get Congress to do what they had earlier promised? It didn’t happen…and then the Democrats started blaming Reagan for the increased debt.
I think it was Tip O’Neil at the time who bullshited Reagan into thinking the D’s were on board.
It was Tip. Friendly with a handshake & smile while he stabbed you in the back.
I won’t know what to think until Krugman tells me. Then I do the opposite.
Krugman: Another criminal case.
Smart!!! Didn’t he retire recently?
I strongly suspect that this is one of of the top priorities for POTUS, not dealing with Epstein stuff.
Moreover, there is absolutely no need to bring up Epstein stuff at this critical juncture. Assuming the AXIOS piece is genuine, and it is unsigned with no date, then it is clearly being used to create a division within MAGA just as Elon is announcing creating his new party.
Apparently, this is too much for some to grasp.
That’s exactly the topic Musk has posted on his X site, an Epstein countdown clock, alluding to his first tantrum comment about President Trump being on said list and making it sound like he, Mr. Tantrum, has the vaunted list of distraction. All to create a MAGA/MAHA divide.
No wonder no woman is willing to stay married to such a child.
One doesn’t get the payoff until the marriage ends.
Interesting. Nothing remotely about Epstein appears anywhere on this page… until you put it here. Lol.
Winning. Lift your mouse if you’re tired of winning! Here try another Winnamin… 😁
None of the negative discussions about Trump’s economic plan ever seem to discuss the role that tariffs play in it, which, at least to my mind, along with a better manufacturing base, play a big part in its success.
Like the hyperinflation under Biden ?
When a patient is morbidly obese and dying helping them find new sources of income to be able to maintain and even increase their weight may not be the best solution to prolonging their well being.
Like the Green New Deal?
Trump has a legitimate point. Grow the economy. It will have obvious positive effects. However, he is far less concerned with seriously cutting spending. His defense budget alone tells me he’s listening to “the connected” on the need to keep the money hose open. I’m not going to squawk about exotic and wildly expensive weapons systems that don’t work well in the field (F-35 albatross). Most of the money in defense goes to operational costs, including salaries and health care for military personnel. Those 750-odd bases overseas cost America serious money. This is where serious cutting should take place. Bottom line? The debt is too high (heading toward $40 trillion!) for economic growth to reduce it to manageable levels. The second bottom line is that I realize that no one is going to do a thing about the debt problem. It’s fingers crossed on Wall Street.
GDP is a key facet, yes, but the elephant in the room is CMS. Always has been.
Nobody, including Trump, has any intention to lift a finger to do anything about it.
Either enforce 15 U.S. Code Chapter 1 – Monopolies And Combinations In Restraint Of Trade
against the medical monopolies, or quit saying you’re serious about the deficit and debt.
SCOTUS has ruled TWICE that it applies. No excuses left.
Now, what will all those people who were running around saying TACO going to do?
Too-Late Powell is a DS operative…with that said, I appreciated the deference and respect that Bessent has for Powell.
Scott has some witty quips…”home-&-away”…the breakfast in the Fed cafeteria is better food than at Treasury…”I don’t think the Fed worries about egg prices” he says with a sly smile.
It is evident that Trump lets his Cabinet do their jobs and they seemingly all do them well. Too bad we are getting mixed signals out of DOJ and FBI. I hope Trump cleans up the messaging there and lets us know what is really going on.
Bondi really blew it when she said early on that she had the Epstein list on her desk. That really ratcheted up everyone’s expectations, only to have them squelched by her not revealing it.
“That really ratcheted up everyone’s expectations,…”
Not everyone’s.
Don’t think the issue is messaging from the DOJ & FBI. Its beginning to look more like incompetence of the two heads of those agencies
Clinton’s treasonous lobbying to get China into the WTO was part of the ChinaGate payout and theft of the 96 Primaries and elections.
Not mentioned by Secretary Bessent is the active RESISTANCE TO COOPERATE of the owner class and Financial Masters. He can’t mention that this resistance has been a major headwind to pace of recovery possible, for a very obvious reason. During the 2017-2019 surge under President Trump, this same resistance taken by surprise but were still making allot of money … so they chose to ride out the storm.
This time around the President’s actions not only challenge the stability of the Business Model for the Global Corporation but also challenges CONTROL with potential that these challenges will live beyond 2028.
The reason this resistance cannot be challenged in the open is because they are needed as part of the solution …. the challenge is to find a way to slowly convert significant parts of the resistance little by little.
I have started watching the various versions of the VIX again … it is interesting so far watch the manipulation of the short term VIX Indexes in a negative direction while the long term seem to be going the opposite direction. So far the short term manufactured Indices seem to equal the negative headlines, media and negative commentary of pundits as well as resistance Billionaire elites.
I stopped watching the VIX Indices after 2016 … but during Obama’s regime it was easy to follow the disasters and supportive manipulation of the Elites supporting Obama via the manipulative fluctuations in the VIX Indices.
Notably, these countries are howling about “tariffs” as though they did not impose very substantial tariffs themselves!
Let’s just remember that table of tariffs that Trump was holding up. The numbers were 50% of what those countries were then imposing on us! And, as we all saw, some of those numbers were quite large.
Tariffs – “import taxes” – have always been fundamental. But, in the case of the USA, for a very long time they have not been fair. Part of that was from a “Marshall Plan” for post-WW2 reconstruction which was supposed to go away in 1953 but somehow didn’t. Yet.
This is one of those no shit sherlock days I guess. Of course you will need growth to overcome the massive debt you are taking on especially when you are financing it with short term financing. It is equivalent to paying your mortgage with your credit card while waiting for the paycheck from your new job to arrive.
Monetizing the debt is easy when you own the printing presses. It is hard when you are counting on others to pay the bill. Tariffs sound great, but that also requires those socialist countries to be able to force their citizens to pony up money to pay more. Not always an easy task. China is already a basket case and has been living on smoke and mirrors themselves. The world world economy may come crashing down and the best laid plans may slip away very fast.
growing is not the only way, but probably the only way without a recession or depression. too much of the economy is addicted to govt spending.
So if we import approx 3 Trillion dollars each year
And if PT gets a 10% Tarriff on average above prior years Tarriff revenue on these same imports
Then that provides the US Treasury with $300 Billion in additional revenue
Today the total Federal tax paid by Americans making less than $300,000 is $63 Billion
Which means PT can use the extra 300B to pay down debt, spend or eliminate federal income tax for individuals making less than 300K
Now how many votes do think PT gets at the mid term elections if he announces no federal income tax on Americans making less than 300K?
He then uses his make it in America economic policy to drive GDP hugely and he uses that growth to help pay down debt.
Then he follows all this up by ending the Fed and moving the US to a Gold/Crypto based system.
And the final piece of the puzzle is PT initiates military tribunals to hold the DS leadership accountable for attempting to overthrow a duly elected President while interfering in Federal Elections.
All this seems very doable and I hope is part of PT’s overall plan.
One can hope and pray Bogey for these scenarios to come to fruition. 😎💪🏼
Growth is great.I love growth.I want more growth. But anyway, who says we need to grow our way out of this deficit instead of slashing and burning, is not my friend.
Do both to win faster!
https://www.zerohedge.com/political/fbi-concludes-jeffrey-epstein-had-no-clients-didnt-blackmail-anyone-and-definitely-killed
Overall I’m pleased with the BBB/making the 2017 tax cuts permanent, funding the wall and immigration enforcement, transferring some of the Medicaid costs to the states, taking the debt ceiling leverage away from the democrats, etc. Forget about telling people about the realities of the fiscal year that ends October 1st…meaning that till then we’re largely living under the Biden budget that is largely untouchable…that the actual government funding bill/appropriations under Trump hasn’t happened yet…they don’t want to hear it. They thought Trump could set the world aright via this one reconciliation bill…or they’re just trolls that were never MAGA to begin with.
My question is will I actually see the debt decrease, including on the websites that track it?
Or will they just spend the “new found” money on increasing the size of government like they always have in the past.
If President Trump doesn’t accept 90% of the DOGE Phase 1 (my term) $200 Billion in cuts to waste, we’re cooked. Spending is eating us alive.
Argentina did it.
Japanese samurai swords were made of “jewel steel” an ancient process of sword-making called tatara, that held a keener edge than any other blade.
Trump 45 endured a crucible that would have eviscerated lesser men…instead it forged him into Trump 47, a real-life Man of Steel, holding a keener edge than any other leader in the world.
I fully expect the economic renaissance America will experience over the next 3-1/2 years to be the eighth wonder of the world, exceeded only by the renaissance of America’s spirit!
Send the stone masons and sculptors to Mount Rushmore now!
I can not believe that MAGA is falling for the Keynesian economics pitch. Or that tariffs totaling far less than $500B annually will some how offset $2.5T in annual debt spending.
At some point you have to stop swiping the credit card and nothing anyone does is going to prevent what’s coming.
Hopium when Trump sells Obama’s economic plans… Pure lunacy!