(Daily Signal)—Hello, this is Victor Davis Hanson for The Daily Signal. I’d like to talk about debt, debt, debt.
All during the last few days, we’ve heard some startling news. Moody’s, the bond evaluator, for the first time in its history, since 1917, has lowered the credit rating of the United States government from Aaa to Aa1.
It didn’t do that during the 2008 meltdown. It didn’t do that during the Great Depression. It didn’t do that during 9/11. It didn’t do that during the Biden years when we borrowed $7 trillion. But it did it now.
At the same time, Jerome Powell, the head of the Fed, will not lower interest rates even though there’s been a good jobs report, a good inflation report, a good corporate profits report. Gross domestic product is gonna be evaluated, apparently, upward and there’s been low energy cost. That mortgage is still 4.25% Fed rate to 4.5%. And that means mortgages are still 6.5%, 7%. And that housing market is slowing as a result.
And this has got President Donald Trump very angry, that they’re doing this, given the prior administration borrowed $7 trillion and helped run up from $29 trillion in national debt to $37 trillion, and left Trump with a $3 billion-a-day interest payment. So, he’s jawboning all this and trying to get down. So, what is Trump trying to do? And is it working?
Well, he’s the first president since Bill Clinton and Newt Gingrich, the speaker of the House at that time, who’s talking about reducing a $2 trillion budget deficit, a $1.2 trillion trade deficit, and addressing a $37 trillion national debt. But is he actually doing it?
On the plus side of the ledger, you’ve got the Department of Government Efficiency. And DOGE in the first 100 days has identified about $160 billion in cuts. That’s encouraging if two things are following: if they can keep up that rate of identifying cuts and get up to the $500 billion or even $700 billion and maybe make 25% or 30% reduction in the $2 trillion deficit. And if the Trump administration exercises fiscal discipline.
The problem is twofold: that while he’s addressing verbally, rhetorically the debt and the deficit, you look at the big, beautiful bill under consideration and it’s going to have to pass or the Trump administration will be completely humiliated.
They need to get it through reconciliation but there are sizable increases in the defense budget from everything that’s justifiable, from salaries, from an Iron Dome-like missile defense—you name it. More drones—good. But it’s more money. And there’s more subsidies to farmers. And there’s not a lot of cuts—at least when balanced with the increases.
So, the budget deficit, for all the talk of DOGE and for all the talk of fiscal sobriety, might not actually go down. And if it doesn’t go down, the Fed may not lower rates. And if it doesn’t lower rates, then you still are stuck with a trillion dollars a year in interest payments. That’s killing us.
So, you’ve got to get that down. And the way Trump has to do it is just two ways: Either cut the budget or raise taxes—which will strangle the economy—or continue the tax cuts. And hope two things: that the tax cuts—the extension—will prime the economy, along with cheap interest rates.
And the question that we all have now: Is cutting taxes on tips, is cutting taxes on Social Security, is cutting taxes on first responder, etc.—all of which Trump has mentioned—is that really stimulus as opposed to, say, accelerated depreciation investment for businesses?
I don’t know the answer. But I do know, as a historian, that if you do not cut the deficit and the national debt and you have bond raters like Moody’s or the Fed that will not lower interest rates, you’re going to be in a crisis.
And in the antiquity—from Greece and Rome, through the Middle Ages, to the Renaissance—there were three ways of dealing with unsustainable debt and are not good. They’re all civilizational killers.
No. 1: As the Weimar Republic did in Germany, you pay back what you owe in cheap dollars. They inflated the marks. And bankrupt really helped cause the depression. You can do that, pay back the $37 trillion in inflated dollars. It’s not a good option.
No. 2: You can confiscate private wealth. People do that all the time throughout history. That destroys the legitimacy of the government. And it makes private investors hide their money.
When I say confiscate wealth, you can already see articles in financial left-wing journals that say, well, maybe the trillionaire, billionaire, whatever term they use, oligarchical class will get credit, some Social Security or get some kind of credit for us taking some of their 401(k) money. Something like that. That never works. It never worked in Athens. It never worked in Rome. It never worked in Renaissance Italy.
The third is the most drastic and it’s a killer too and we’ve seen countries in South America try it. And that’s to renounce the debt. Just say: You know what? All you bondholders, you guys have U.S. savings bonds—40% of them abroad, you know, here in America—you have so much money anyway. We’re just not gonna pay you back—the government. We’re gonna renounce it and start from zero.
Who would ever buy a bond again if we were to do that?
So, bottom line is incumbent upon the Trump administration to make real cuts and show progress that you’re reducing the annual budget deficit and more importantly, you have mechanisms to grow the economy.
Final note. We have a lot of confidence—this administration—that tariffs will give revenue and maybe also help reduce the budget deficit. I’m not sure that’s happening. Only 1% or 2%, maybe 3% of the $5 trillion in federal revenue today is made up by tariff income. Even with these huge new tariffs, if they’re actually reified, you might get a trillion dollars. You might get a trillion dollars over 10 years. That’s $100 billion out of $5 trillion in revenue. So, I’m not sure we can count on tariff income at all.
What we should count on is cut, cut, cut. Seek a balanced budget and grow the economy with tax cuts that encourage investment and economic expansion.
Bypass Big Tech Censors
Safeguarding Your American Dream: Discover the Power of America First Healthcare
In today’s economy, healthcare costs remain one of the biggest threats to financial stability and family security. Americans work hard to build a better life, yet rising medical expenses can quickly erode savings, force tough trade-offs, and even push families toward debt or bankruptcy. Medical bills continue to rank as the leading cause of personal bankruptcy in the United States, with millions facing underinsurance or unexpected out-of-pocket burdens that no one plans for. Many turn to government-run marketplace plans under the Affordable Care Act, hoping for relief, only to discover that what appears affordable on paper often delivers higher long-term costs, limited real protection, and coverage that may not align with personal values or family needs.
America First Healthcare stands out as a private insurance agency dedicated to helping conservatives and families secure better coverage and better rates through customized, values-aligned options. By conducting free insurance reviews, the agency uncovers hidden gaps in existing policies and connects clients with private alternatives that emphasize personal responsibility, small-government principles, and genuine affordability—often delivering up to 20% savings while providing stronger protection for the American Dream.
The allure of marketplace plans is easy to understand: open enrollment periods, premium tax credits for many households, and the promise of “comprehensive” benefits mandated by law. Yet recent data reveals a different reality, especially after the expiration of enhanced premium subsidies at the end of 2025. Enrollment for 2026 dropped by more than one million people compared to the prior year, with many shifting to lower-tier bronze plans to keep monthly premiums manageable.
These plans feature significantly higher deductibles—averaging around $7,500 nationally—and greater cost-sharing requirements. Families who once paid modest amounts after subsidies now face average premium increases of $65 or more per month, even as they accept plans that leave them responsible for thousands in upfront costs before meaningful coverage kicks in.
High deductibles create a dangerous barrier to care. Studies show that people in such plans are less likely to seek timely treatment for chronic conditions, attend preventive screenings, or fill necessary prescriptions. A seemingly minor illness or injury can balloon into major expenses when patients delay care until problems worsen. For a family of four, a single hospitalization, cancer diagnosis, or unexpected surgery can easily exceed the deductible, triggering coinsurance and out-of-pocket maximums that still leave substantial bills. One recent analysis noted that some proposed changes could push family deductibles toward $31,000 in future years, further exposing households to financial risk.
Beyond the numbers, marketplace plans often carry structural limitations. Coverage for certain critical services may include waiting periods or narrower networks that restrict access to preferred doctors and specialists. Preventive care is required to be covered without cost-sharing, but everything else—lab work, imaging, specialist visits, or ongoing treatment—typically waits until the deductible is met. This reactive model contrasts sharply with the proactive, holistic approach many families prefer, especially those focused on wellness, early intervention, and maintaining health to enjoy life rather than merely reacting to illness.
Values alignment represents another growing concern. Government-influenced plans operate within a framework shaped by federal mandates and political priorities that may not reflect conservative principles of limited government, personal freedom, and ethical stewardship. Families who want to direct their healthcare dollars toward providers and benefits that honor traditional values sometimes find marketplace options feel misaligned, forcing a compromise between affordability and conviction.
Private alternatives, by contrast, offer year-round flexibility without the restrictions of open enrollment windows. Independent agents can shop across a wider range of carriers to design plans tailored to specific family needs—whether that means lower deductibles for frequent medical users, broader provider networks, or add-ons that support wellness and preventive services from day one. Clients frequently report more stable premiums that do not automatically escalate each year, along with genuine cost savings once the full picture of deductibles, copays, and coverage depth is considered.
Take the experience of real families who made the switch. Amanda C. shared that her new plan felt “way better” than what she had through the marketplace. Johnny Y. noted his previous coverage kept increasing annually until he found a more stable private option. Sofia S. expressed delight with her plan and began recommending it to others. These stories echo a common theme: when families move beyond one-size-fits-all government marketplaces, they often discover customized protection that better safeguards both health and finances.
Founder Jordan Sarmiento’s own journey underscores the stakes. In 2021, a six-day hospitalization generated a $95,000 bill. Under a well-structured private “Conservative Care Coverage” plan, his out-of-pocket responsibility would have been just $500. That stark difference illustrates how thoughtful planning and private options can prevent a medical event from becoming a financial catastrophe.
Practical steps exist for anyone questioning their current coverage. Start with a no-obligation review of your existing policy to identify gaps—high deductibles, limited critical-care benefits, or escalating premiums. Compare total projected costs (premiums plus potential out-of-pocket expenses) rather than monthly premiums alone. Consider family health history, anticipated needs, and lifestyle priorities. Private agencies can present side-by-side options that include stronger wellness incentives, broader access, and plans built on shared values of self-reliance and freedom.
In an era when healthcare inflation continues to outpace general cost-of-living increases, relying solely on marketplace solutions carries growing risk. Families who proactively explore private alternatives frequently achieve meaningful savings while gaining peace of mind that their coverage truly works when needed most.
America First Healthcare makes this exploration straightforward through its free review process. Families and individuals receive personalized guidance to close coverage holes, reduce unnecessary expenses, and secure plans that align with conservative principles—protecting wallets, health, and the American Dream without government overreach. Many who complete a review discover they can enjoy better benefits for less, often saving up to 20% while gaining the customization and stability that marketplace plans struggle to deliver.
Ultimately, protecting your family’s future requires looking beyond the marketing of “affordable” government options. By understanding the long-term costs hidden in high deductibles, shifting coverage tiers, and values mismatches, Americans can make empowered choices. Private, values-driven insurance offers a smarter path—one that rewards diligence, supports wellness, and delivers real security. For those ready to move beyond the limitations of traditional marketplace plans, a simple review can reveal options designed to serve families, not bureaucracies. The American Dream thrives when individuals and families retain control over their healthcare decisions, and thoughtful private coverage plays a vital role in making that possible.
