Trump is not famous for being a budget cutter. He cared nothing for the topic in his first term. He was vulnerable after March 2020 to believing that multiple trillions could be spent without consequence to keep the economy floating during lockdowns. That was an error. He will never admit to it.

This time, however, he has a strong reason to dramatically cut the federal budget. This much he can know for sure: every dime cut from the federal budget is likely to end the flow of money to people who are working to undermine his administration. In saying that, I’m in no way promoting the politics of revenge but rather drawing attention to political realities. Balancing the budget has the side benefit of defunding the opposition.

Second, if the Treasury stops the T-bill tsunami, the Fed will not be called upon to sponge up the excess with money creation.