The King of Cheap Debt is living up to his name.
Prior to winning the 2024 Presidential Election, former-President Donald Trump routinely attacked the Biden administration for increasing the debt. Among other things, President Trump has accused the Biden administration of racking up “8 trillion in wasteful deficit spending,” spending like “drunken sailors,” looting the Treasury and bringing the “country to the brink.”
All of this is ironic because, as Bill King has noted, the U.S.’s debt increased a greater percentage under the Trump administration’s first term compared to that of President Biden’s four years.
When President Trump took office in January 2017, the U.S. had $19.8 trillion in debt. By the time President Trump’s term ended, this number had ballooned to $27.7 trillion. This represents a 40% increase in debt outstanding.
True, President Biden continued this debt trajectory by adding $8 trillion in debt from early 2021 to the end of 2024… but this $8 trillion increase represented a ~28% increase… which is significantly lower than the 40% increase in public debt that occurred during President Trump’s first term!
Now, obviously we can point out that much of the debt increase during Trump’s first term was triggered by the shutdowns which were pushed aggressively by the Democrats. But this argument is somewhat negated by the fact that President Trump is outspending the Biden administration during his 2nd term!
One year into his second term, President Trump has increased the U.S.’s public debts by $2.32 trillion. At this pace, the U.S. will add $9.2 TRILLION in debt during President Trump’s 2nd term: a pace of debt increase that is faster than both President Trump’s 1st term and the Biden administration!
It is clear, President Trump’s plan for dealing with this is to “inflate” the U.S.’s debts away… at least as long as that strategy works.
The President is super-charging economic growth via a “run it hot” strategy that involves rampant fiscal spending. For the fiscal year 2025 ended September 2025, the U.S. ran a deficit of $1.8 trillion. True this is down $41 billion from FY 2024 which occurred under President Biden… but we have to consider that the Trump admin ran this deficit while ALSO increasing revenues by $317 billion. Put another way, the Trump admin is actually outspending the Biden admin in terms of fiscal spending!
On top of this… the Trump administration is pressuring the Federal Reserve to aggressively ease monetary policy… despite the economy growing at 4% while most major asset prices (real estate, stocks, etc.) are trading at or near all-time highs.
With the nomination of Kevin Warsh as Fed President, the Trump admin has now picked four out of the seven members of the Board of Governors. If Lisa Cook is forced to resign, that number will jump to five.
Bear in mind, the Fed is already cutting rates AND running a $40 billion per month QE program. And it’s clear President Trump views this as “too little, too late!” Put another way, he wants the Fed to be more aggressive in its cuts and QE.
Fiscal Dominance + Aggressive Fed Easing = “Run It Hot” Economic Framework.
And the most likely outcome from this is going to be another round of inflation. Case in point, the $USD has lost 8% since President Trump won the 2024 President election.
The long-term picture is signaling what is coming.
Another round of inflation is coming… and it’s going to be intentional. Smart investors have a short period of time to prepare before it hits!
On that note, our Special Investment Report titled Survive the Inflationary Storm details FIVE secret investments you can use to potentially make extraordinary gains. These are HIGH OCTANE positions that rose 75%, 140%, 150%, 180%, 280% and an incredible 574% in 2025! And I wouldn’t be surprised to see them repeat this performance in 2026.
Normally I’d charge $499 for this report as a standalone item, but we in light of what is unfolding today, we making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
