The current level of government deficits will either result in inflation or an unsustainable debt burden, economists say, depending on how the government funds them.
“There are only two ways you can finance a deficit,” Steve Hanke, economics professor at Johns Hopkins University who served on President Ronald Reagan’s Council of Economic Advisers, told The Epoch Times.
In the case of Trump’s strikes on Iran, these actions should not only be scrutinized by their disregard for congressional checks and balances, but also and more importantly for their economic and human costs, as well as their implications for state power and individual freedoms.
Recent headlines tell us Ukraine managed to sneak trucks inside Russia close to five Russian air bases—one as distant as Siberia—then launched first-person-view drones to attack military assets, including Russian bombers. According to Politico,
Last week, democratic socialist Zohran Mamdani pulled off an upset and beat the establishment’s preferred candidate, Andrew Cuomo, in the Democratic primary for New York City’s mayoral election.
#HankeInflationDashboard: This week’s top 5 inflators by my measure:
🇻🇪 Venezuela — 258.9%/yr
🇸🇸 South Sudan — 104.3%/yr
🇮🇷 Iran — 57.5%/yr
🇿🇼 Zimbabwe — 53.6%/yr
🇲🇲 Myanmar — 47.7%/yr pic.twitter.com/z6XKsRREeU— Steve Hanke (@steve_hanke) July 1, 2025
The worst case would be to turn Fannie and Freddie back into government-sponsored enterprises again, with a free government guarantee to subsidize the investors.
