US Government’s big debt problem makes Donald Trump very happy
With the 2026 midterm election just a few weeks away, many are planning to vote for Democrats this year after voting Republican in 2024 because they believed Donald Trump when he said he would end price inflation and eliminate the national debt — a promise he never intended to keep because he planned to use government’s big debt problem to make billions for himself and his family.
Turns out, when Donald Trump told a reporter in 2018 that he “doesn’t care about the national debt” because “[he] won’t be here” when the day of reckoning arrives, he meant it. Maybe Americans should have paid more attention to what the Republican Party rhetoric about tax cuts and a “flexible” monetary policy really meant when we had the chance (via Ron Paul Institute):
The idea that tax cuts, deregulation, and a slightly less destructive monetary policy can produce enough economic growth to eliminate deficits has been an article of faith among many conservative economists and Republican politicians since the late seventies. An insight of supply-side economists is that, since cutting taxes incentivizes people to work and invest, government can increase revenue by cutting taxes. Over time, the growth produced by low tax rates is expected to enable government to reduce or even eliminate its debt without making spending cuts. This theory benefits Republicans who can campaign promising to cut taxes while avoiding discussing what may be unpopular spending cuts.
One of the problems with this theory is deficit spending itself inhibits economic growth by causing the Federal Reserve to monetize the federal debt. The Fed lowering interest rates and increasing the money supply distorts the signal interest rates send to market actors. This distortion causes the boom-bust cycle that plagues the American economy.
The main reason why increasing revenue does not reduce government debt is because Congress will inevitably spend the new revenue rather than use it to reduce the debt. This is because the interests benefiting from increased warfare and welfare spending are numerous and influential while the supporters of limited, constitutional, and fiscally responsible government are comparatively few and noninfluential.
Secretary Bessent says the Trump administration will also eliminate debt via spending restraint. However, the Republican Congress and President Trump have increased the national debt by approximately four trillion dollars since President Trump assumed office in January of 2025.
The skyrocketing federal debt and resulting monetization of that debt are reasons Americans struggle with continuously increasing prices. Americans are now experiencing high gas prices thanks to President Trump’s unconstitutional Iran War, while other prices have risen because of President Trump’s tariffs.
Price increases are a main reason the Republicans may lose control of Congress this year. According to a Harris poll, prices are a top concern of voters and even the majority of Republicans do not believe the economy is improving. (Emphasis mine)
If the national debt and the monetization of it are responsible for inflation and the current condition of the economy, why would Donald “King of Debt” Trump not only ignore it, but make it worse at a record rate? Because, as I shared a few months ago, he always intended to use it as a multi-billion-dollar money making scheme for himself and his family.
In the early days of his second term, Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, and despite claims to the contrary made at the time by the economic savior of the world and his Republican Party echo chamber, this legislation was key to allowing Trump to use monetary policy to rake in billions upon billions of dollars for himself (via Fortune.com):
After years of battling with regulators, the legislation represents a major victory for the crypto industry, which started in the wake of the 2008 financial crisis and was long viewed as an outlaw sector. Now, the stamp of approval from Congress—and the broad embrace by the Trump administration—casts new legitimacy on blockchain technology, with once-skeptical institutions like Big Tech companies and banks rushing in, especially as Bitcoin soars to record highs.
However, as Congress moves on to debate a second bill that would create regulations around cryptocurrencies and exchanges, critics warn that the passage of stablecoin legislation raises concerns about the increasing ties between Trump’s business empire and blockchain interests. “That is a huge conflict of interest that society is just really not prepared for,” said Todd Phillips, a banking and administrative law professor at Georgia State University.
I don’t want you to miss the “stablecoin” part of the legislation because it created a system making it easier to take over the financial sector since stablecoins are a cryptocurrency directly pegged to the U.S. dollar. The Trump family’s crypto firm, World Liberty Financial, were the issuers of the first USD1 stablecoin under the GENIUS ACT (via Fortune.com):
After years of battling with regulators, the legislation represents a major victory for the crypto industry, which started in the wake of the 2008 financial crisis and was long viewed as an outlaw sector. Now, the stamp of approval from Congress—and the broad embrace by the Trump administration—casts new legitimacy on blockchain technology, with once-skeptical institutions like Big Tech companies and banks rushing in, especially as Bitcoin soars to record highs.
However, as Congress moves on to debate a second bill that would create regulations around cryptocurrencies and exchanges, critics warn that the passage of stablecoin legislation raises concerns about the increasing ties between Trump’s business empire and blockchain interests. “That is a huge conflict of interest that society is just really not prepared for,” said Todd Phillips, a banking and administrative law professor at Georgia State University. (Emphasis mine)
Trump also signed an executive order shortly after his inauguration that allegedly banned Central Bank Digital Currency (CBDC), but the order required the establishment of a presidential working group to create a federal regulatory framework governing digital assets (including stablecoins) and evaluate the creation of a strategic national digital assets stockpile. In other words, government would control digital currency instead of the Federal Reserve. The tyranny is the same, only the name is different.
The GENIUS Act and other legislation regulating digital currency are obviously key to Trump’s scheme of leveraging the national debt into a multi-billion-dollar payday, but that’s not how the oligarchs in Washington are selling it. Instead, they’re selling it as a way for Republicans and Democrats to spend us into oblivion without worrying about destroying the US economy (via Equilibrium):
You have probably heard of the fiscal deficit problem, and people making huge profits by investing in crypto. But few people would have ever linked the two. The recently passed GENIUS Act aims to address the fiscal deficit issue with a dollar-based stablecoin. By requiring that the each issued coin be backed by an equivalent volume of U.S. T-bills (short-term debt securities), the act seeks to stabilize interest rates and ease the government’s debt burden.
Traditionally, the main buyers of U.S. Treasury securities have been the Federal Reserve, foreign central banks, and U.S. commercial banks. However, changing economic conditions have weakened their demand for Treasuries in recent years. The Federal Reserve has been reducing its holdings as part of quantitative tightening. Foreign central banks have also cut back, concerned about America’s swelling debt and rising geopolitical tensions. U.S. commercial banks, constrained by regulatory requirements such as Supplementary Leverage Ratio (SLR), have little capacity to expand their Treasury holdings.
Under the GENIUS Act, stablecoin issuers are required to back their coins with short-term U.S. Treasury securities, aiming to transform the stablecoin market into a new source of demand for U.S. government debt. Secretary Bessent expects the stablecoin market to reach roughly $2 trillion and emerge as a major buyer of U.S. Treasuries, easing the nation’s fiscal burden by broadening the demand base for Treasuries. (Emphasis mine)
Will a blue wave in the midterms make any difference? Probably not. As I make clear in my book, The New Axis of Evil: Exposing the Bipartisan War on Liberty, the destruction of liberty in America comes from Republicans AND Democrats. While it’s likely that Democrats will go after Trump’s obvious corruption, they will simply replace the Republicans’ tax-and-spend policies that got us here in the first place with a boatload of their own tax-and-spend policies.
Americans should have been paying attention to Donald Trump in 2024 because the self-proclaimed “King of Debt” had always intended to use the national debt as a money-making opportunity to rake in billions of dollars for himself and his family — and that makes him very happy.
David Leach is the owner of the Strident Conservative and the author of The New Axis of Evil: Exposing the Bipartisan War on Liberty. He holds people of every political stripe accountable for their failure to uphold conservative values, and he promotes those values instead of political parties.
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