Source: Common Sense
by Paul Jacob
“Trump’s riding high, in the first week of his second term — but not regarding the biggest problem he faces, inflation and economic instability. ‘When bondholders don’t see a credible fiscal path to be repaid for current and future government debt,’ writes Veronique de Rugy at Reason, ‘they expect that eventually the central bank will create new money to buy those government bonds, leading to higher inflation. Recent inflation wasn’t just about money supply; it reflected the market’s adjustment to unsustainable fiscal policy.’ Winning, for Trump, cannot equate to Spending.” (01/24/25)