When we talk about the war in Ukraine, I agree with supporting the invaded country. Let my position be clear. However, to understand President Trump’s position, we must remember several factors.

First: The war has stalled, and Russia is advancing, even if I don’t like it. By early 2025, the Russian army controlled about 18% of Ukraine’s territory. It added 1,500 square miles over the course of 2024, almost twice the size of London.

Second: Sanctions against Russia have failed. I was the first to defend them, but I warned that if Asia didn’t join, they would fail. Between 2022 and 2024, Russia’s trade surplus has reached over $600 billion. Russian products are exported all over the world and in many cases, they are sold in the European Union via China or India.

Politicians in Europe are using the JD Vance and Trump external enemy excuse to disguise the existential problem of a system that is crumbling. The statist nightmare built around what politicians call “welfare state” has proven to be a subterfuge to multiply bureaucracy and create a dependent subclass.

The welfare state was never sustainable but was created as an affordable luxury that rich economies could finance with strong economic growth and a solid productive sector. However, European governments overlooked the necessity of fostering economic growth and productivity to finance the welfare state.

Furthermore, as left-wing populism permeated all segments of the European political landscape, politicians started to include more and more so-called “rights,” which became entitlement costs and subsidies, in a trend that led Europe to forget to create wealth and focus entirely on extractive and confiscatory policies.

The latest figures published by the Department of Government Efficiency (DOGE) are staggering. $75 billion saved in two weeks. Some of the items they have slashed are astonishing, including payments to transgender musicals in Ireland, DEI in Serbia, or decolonization of curriculum vitae. This is a two-week result, so it should be applauded. However, there is a lot more that needs to be done.

The Congressional Budget Office (CBO) estimates that the United States will have a $6.1 trillion deficit, despite record receipts of $17 trillion, a growing economy, and declining unemployment. Furthermore, they expect an annual deficit of $5.6 trillion in the 2026-2029 period.

As Scott Bessent has correctly stated, the United States does not have a revenue problem; it has a spending problem. The CBO expects annual outlays of $23 trillion in the 2026-29 period.

What do we know?

Inflation is rising, but it has nothing to do with tariffs. It has everything to do with the Fed’s policy and the Treasury’s uncontrolled spending.

The Core PCE Price Index, which excludes food and energy, rose by 0.2% this month and remains stubbornly high at 2.8% annualized. The headline PCE Price Index increased by 0.3%, the first 0.3% monthly increase in eight months. This has pushed the annualized increase to 2.55%, the highest in seven months.

Obviously, this inflation trend has nothing to do with tariffs but with the fact that government spending soared 10% in 2024, and money supply growth is at a two-year-high.