An evaluation of Trump 2.0 and the events of Apr 2, 2025, require a stocktaking of the US economy. We have to start from Covid-19 and the unbridled infusion of liquidity by the US of $14 trillion in the last five years. Today, public debt is over $36 trillion, involving annual interest payment approaching a trillion dollars. The trade deficit in 2024 reached a record high of $1.2 trillion. Not far back, inflation had soared to record highs and in response, interest rates were raised at the fastest pace ever. While interest rates remain elevated for over two years, other indices have defied gravity. Economic growth, asset prices, Wall Street, the US dollar and job growth have never been stronger (American Exceptionalism). Every flaw in the US economic model was drowned in the celebrations of a buoyant Wall Street.However, saner voices have continued to warn that the US economy has entered an unsustainable debt spiral. Yet, when it comes to suggesting a plan for addressing structural flaws, there is little other than platitudes. For instance, in an opinion column in Bloomberg by Michael Bloomberg - "America Is Headed for a Grim Fiscal Reckoning" - while making a foreboding assessment, concludes by saying, "The only sensible approach is to combine moderate tax increases and judicious cuts in spending." It doesn't really enlighten any President staring down an abyss of debt except act as an affirmation for a 'Great Reset'.
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