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Joe Biden’s fiscal time bomb is set to explode just in time time for Trump to take office
By Charles GasparinoPublished Jan. 4, 2025
As evidence keeps building that the hapless Biden administration couldn’t end fast enough, there’s also evidence that the first Trump presidency of strong growth and low inflation pre-COVID won’t return immediately.
That’s the signal we’re getting from the bond market: The possibility that the fiscal time bomb of nonstop spending that Joe Biden and his minions have planted is ready to explode just in time for Trump to take office.
Most of the financial punditry is too obsessed with stock indexes to appreciate the bond market’s warning signs.
Stock prices have their place, of course.
When investors pile into stocks as they’ve been doing since Trump’s election — until recently, that is — it’s an indication that many are betting his policies of lower taxes and less regulation will lead to higher corporate earnings and GDP growth.
For my money, the bond markets provide a more accurate window into underlying fissures that could lead to severe fiscal distress in the future.

Joe Biden’s fiscal time bomb is set to explode just in time time for Trump to take office
As evidence keeps building that the hapless Biden administration couldn’t end fast enough, there’s also evidence that the first Trump presidency of strong growth and low inflation pre-COVID won’t …
