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Category

😹
Fun
Transcript
00:00The only governor, if you will, politically, in a weird way, may be the bond market.
00:05Of course, because interest rates, the government interest rate is the backbone of all markets, right?
00:13Stock market, bond market, all borrowing, all lending, everything, right?
00:18So we have to stabilize that, and we can do it.
00:22That's what I call the 3% solution.
00:24The 3% solution is that you can cut it down from 7.5% to 3%.
00:30Now, what people don't realize is there are three ways of doing that.
00:34They understand that there are taxes, there is spending, okay?
00:40But what happens is, like in 1991 to 1997, there was a comparable decrease in the budget deficit
00:49because if you do it when the economy is good, you will get a lower interest rate.
00:56And the lower interest rate means less money on less cost of the debt
01:01because we have so much debt that the interest cost on the debt is more important than spending in taxes.
01:08And so you can get there, and if you get there, you'll get a bond market rally.
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