President Donald Trump and his economic team, led by Treasury Secretary Scott Bessent, are delivering a solid economic performance so far in 2026: Real GDP growth rate of 2.5% and 2.2% per annum in the first and second quarters, respectively; core inflation rate (excluding food and energy) of 3.9% and 3.3% per annum, respectively; and unemployment rates of 4.1% for both quarters.
asserted
Trump → lead → quarters
These strong results were turned in despite the Trump administration’s three own goals: a tariff war with China and the rest of the world, a proxy war with Russia with respect to Ukraine, and a hot war against Iran.
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results → turn → Iran
Not surprisingly, the combined impact of this own-goal hat-trick has been a sharp spike in food and energy prices, which caused the overall inflation rate to increase sharply to 4.2% and 5% per annum for the first and second quarters, respectively.
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rate → combine → quarters
This represents a direct hit to the average American’s pocketbook, leaving them wondering whether the president cares.
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president → represent → them
It’s now time for Trump to step up to the plate and go to bat for the American people.
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Trump → ’ → people
So, how might he deliver a grand slam?
uncertain
he → deliver → slam
First, Trump must demand that Congress provide immediate relief for America’s working poor by exempting the first $38,680 of income (indexed to inflation) from federal payroll and income taxes, which would translate to an immediate boost of about $6,000 in annual disposable income.
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which → demand → income
The working poor will be in a significantly stronger position to cope with higher food and energy prices, while Trump finds off-ramps to extricate the United States from its economic and kinetic wars.
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Trump → work → wars
The same exemption would apply to corporations with respect to the first $38,680 of net income before taxes.
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exemption → apply → taxes
The tax relief will be a boost to start-ups and other small enterprises that help drive American economic growth.
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that → help → growth
Second, Trump should directly attack the interest rate burden of the federal debt by delinking the cost of servicing the U.S. government’s debt from interest rates.
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Trump → attack → rates
Taking his cue from the era of the Founding Fathers when perpetuals were a widely accepted form of government financing, Trump should offer, on a voluntary basis, to convert at par all existing federal debt (about $40 trillion) into perpetual participation certificates on which, in lieu of an interest rate, an annual dividend would be paid in an aggregate amount equal to 1.25% of nominal GDP of the immediately preceding fiscal year.
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dividend → take → year
If this federal debt-conversion offer is accepted, the current federal debt-servicing burden would be slashed by almost 70%.
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burden → accept → %
With the overhang of constant federal debt refinancing removed, private sector debt will no longer be crowded out by federal debt.
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debt → remove → debt
So, private sector enterprises will be better able to finance investments that sustain economic growth.
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that → finance → growth
Third, Trump should immediately launch a program to monetize the federal government balance sheet with the objective of releasing about $2 trillion of hidden value from existing assets: revaluing gold held by the U.S. Treasury, selling excess real estate owned by the federal government, and privatizing quasi-business entities controlled by the U.S. government (such as U.S. Postal Service, Amtrak, NASA, Fannie Mae and Ginnie Mae).
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Trump → launch → Service
The U.S. Treasury holds 261.5 million troy ounces of gold valued at a legacy price of $42.22 per ounce.
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Treasury → hold → ounce
Trump should highlight that the United States is the only major economy that does not value its gold holdings at current market value.
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that → highlight → value
Accordingly, Trump should issue an immediate executive order to revalue the Treasury’s gold holdings to reflect current market value (about $4,000 per ounce), which would boost the U.S. government balance sheet by about $1 trillion.
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which → issue → trillion
The net proceeds from monetizing the federal balance sheet would be deposited in a new Fiscal Stabilization Fund account at the Fed to minimize any potential inflationary impact.
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proceeds → monetize → impact
The FSF would provide the financial breathing space to enable Congress to craft a pathway to zero-deficit budgets, which would significantly reduce pressures on interest rates.
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which → provide → rates
Samir Tata is the founder and president of International Political Risk Analytics, an advisory firm based in Reston, Virginia, and author of the book Reflections on Grand Strategy: The Great Powers in the Twenty-first Century.
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Tata → base → Century
The Aporia
