Who will pay for this ?

Despite the fiscal restraint narrative championed by Elon Musk's "Doge" initiative, the U.S. is currently experiencing its largest budget deficit outside of a recession. In fiscal year 2024, the deficit reached $1.9 trillion, marking the third-largest in U.S. history, trailing only the pandemic-era shortfalls .

This fiscal backdrop is set against the Trump 2.0 administration's ambitious plans, including over $4.5 trillion in tax cuts and significant increases in spending on defense, border infrastructure, and immigration enforcement . With the national debt already exceeding $36 trillion and a substantial portion of existing debt nearing maturity, questions arise about how these initiatives will be financed. Cutting Medicaid will not be enough and not the right answer in our opinion.

Compounding these concerns, foreign demand for U.S. Treasuries is waning, influenced by recent tariff policies and growing skepticism about U.S. fiscal sustainability . This environment suggests continued volatility in financial markets.