Economic data shows weakening growth, a softening labor market, and rising inflation. They spent years printing money, fueling bubbles, and ignoring reality. Now? There’s no escape. They can’t cut rates without unleashing even more inflation. They can’t hike without breaking the economy. This isn’t a policy error—it’s policy failure.
We’re staring at a $2.1 trillion deficit. To balance the budget, we’d need to cut $2 trillion in spending. The problem? Cutting this much will plunge the economy. GDP could drop by 10-13%, putting us in a recession worse than the Great Financial Crisis. The painful reality: We’d slash spending, but tax receipts would plummet, and expenditures would spike in a recession. It’s a vicious cycle. Cuts are impossible without massive social pain, yet there’s no easy path forward.
Trump has realized something VERY important.
He’s not getting interest rates down until he brings SPENDING down. https://t.co/hfjtYF8qls
— Darth Powell (@VladTheInflator) February 7, 2025
Stagflation, the one scenario the Fed never stress tested for and hopes doesn’t happen as it has no contingency plan, looks like that’s precisely where we’re headed. Today’s economic data confirms the economy and labor markets are weakening as inflation pressures are building.
— Peter Schiff (@PeterSchiff) February 7, 2025
We are currently running a ~$2.1 trillion deficit. To balance the budget would require cutting about $2T in spending
It won’t be possible without significant legislation and the resulting contraction in GDP would be worse than the GFC
Here’s the math:
-Current GDP is $29T,… https://t.co/OapqucQUw0 pic.twitter.com/Hz4PQ7ReDi
— infra 🏛️⌛️ (@infraa_) February 8, 2025
Very significant breakout in copper prices this week.
In my view, this is an important reminder that we are witnessing an inflection point in global copper demand as onshoring intensifies across nations, alongside the AI arms race and re-industrialization. pic.twitter.com/UWT26wDVVM— Otavio (Tavi) Costa (@TaviCosta) February 8, 2025
Consumer inflation expectations way up https://t.co/6bm50Wiqrf pic.twitter.com/9JuCOB7o9o
— Don Johnson (@DonMiami3) February 7, 2025
🚨DAVID SACKS: “We knew that the US Government runs a $2T deficit every year, we’re in debt almost $40T, and every time someone tries to cut something in Washington the whole city screams bloody murder. The question is why? Now we know — everyone was getting paid!
New York… pic.twitter.com/mUd571Vj14
— Autism Capital 🧩 (@AutismCapital) February 8, 2025
