Give it some time. Whether intentional or unintentional, Trump has been teeing up economic collapse, and things are likely to come unglued in late 2026. Right-wingers have been harping on “the deficit” for decades, while doing nothing but increasing it. You can maintain a 2% budget deficit indefinitely so long as your economy grows by 3%. However, Trump’s “Big Beautiful Bill” boosts the budget deficit to ~6%, and ~1/3 of U.S. debt matures in 2026 and will have to be rolled-over into new, higher rate bonds. However, notwithstanding the rapidly approaching massive growth in the cost of debt service, Trump’s policies are shrinking the economy.

It is well known that population growth = economic growth, as each additional person contributes their labor and needs to buy food, housing, clothing, transportation, etc., etc. Conversely, shrinking the population by kicking out people contributing to the economy causes it to shrink, and Trump is kicking out people that help produce food and work in construction, not only shrinking the economy but also boosting the costs of production, contributing to inflation.

In addition, tariffs shrink foreign trade, and levying outrageous tariffs on other countries invites retaliation. Look at what has happened to soybean farmers with respect to China’s purchase of soybeans and alcohol distillers with respect to Canadian purchases of alcohol.

While all of this sets the stage for a future financial crisis, in the same that a household maxing out its credit card debt, rolling it over each month on new credit sets up a personal financial crisis, as eventually you run out of credit cards willing to underwrite your risk, there is reason to believe that the crisis will come sooner rather than later. This is because Jerome Powell’s term as Fed Chairman is up in May of 2026, and Trump will definitely put in a lackey that will do whatever Trump wants, rather than what is prudent for the U.S., and Trump has made it crystal clear that he wants the Fed to lower interest rates to juice the economy.

So what is going to happen is that there will be low demand for U.S. government bonds to refinance the debt, forcing higher rates to compensate for the risky financial position the U.S. is in and also forcing the Fed to buy them, effectively printing money. Add in the fact that the world no longer sees the U.S. as a reliable partner, and it will destroy the dollar, further reducing it’s demand and causing a massive inflation spike, and a financial crisis at a level not seen since the Great Depression, with bank runs, etc. There is a reason that gold is in the greatest bull market of all time, and continues to make new all-time highs. It’s because central banks are shifting away from dollar assets (central banks now hold more gold than U.S. treasuries), and individuals are looking to protect their assets. We will likely have a “melt up” (massive stock market spike) as people scramble to get out of dollars and into harder assets, and then a collapse. I expect gold to top $8K in 2026. Buckle up, because we’re living in interesting times!