I just want to highlight the

CBO projection right so this is the US

government's debt as a percent of the US

government's Revenue which you you

indicate in your book is more important

than debt to GDP you've got to look at

the actual Revenue being generated by

the government and how much debt they

have and the CBO highlights this

expansion to 700% meaning the government

is going to have a debt level that's

seven times the income it's making every

year over the next uh I believe this is

a 10-year chart and you propose a bunch

of actions that can keep it flat over

the next 10 years so number one

is I call it my 3% solution the solution

is you must cut the deficit which is the

equivalent of bonds selling down to 3%

of

GDP and it's 7 a half% expected that's

about 900 billion a year yeah roughly

and that means cutting it as you point

out by cutting the deficit by more than

half from where it sits yeah well it's

yes because it with the continuing the

uh the tax cuts strum tax cuts that's

that'll be 7 a half% and you want to get

it down to three it sounds Draconian but

we did that kind of change from 1990 1

till

1997 and there are three keys to this do

it soon fast when the time is good when

the economy is good in other words do it

now now the Temptation is going to say

well we're going to ease into this and

we're going to be there and we're going

to do it in three years from now but if

you have a bad economy you you cannot do

it okay and that's the that's the worst

so we have the best economy and the

sooner you do it the more you're going

to do it so 3%

solution do it now and recognize that

you have to De deliver it so if you're

having let's

say Cost Cuts in government you have to

own the number so everybody's got to

pledge 3% now the the the argument say

now to get there but you have to own the

number um so much so that you'd say if

it's not 3% throw me out of office and

you can't make it any one

thing right but you also have to realize

like if you did it spread out nothing's

going to be insurmountable but the main

thing is you take the things you can cut

from or build from so what can you cut

from and you look at government

expenditures roughly 70% of government

expenditures are you can't cut cut so so

it comes down to a small percentage that

you can cut but you you find out how

much can you cut so the important thing

is

3% the other thing about it is to

realize that if you make those

moves the bond market will benefit you

see this and so interest interest rates

will go down right and interest rates

going down interest rate expense

is most important if the federal

government were to cut spending

significantly and quickly the market

would naturally react to lower rates

that's right I think that is so

important for everyone to hear if you

look at my calculations if you get 100

basis points cut in rates that's

equivalent to significant cutting in

spending so he's right but you but if

you do that without the other parts

you're going to make it less desirable

to own these things these bonds and

because that's that's going to be a

problem where if you do these things

together they can support each other so

in other words fine cut it from spending

and by the way Ray the longer we wait

the more interest accumulates because

it's at a higher rate the more the debt

accumulates and ultimately this is the

arithmetic death spiral that you get

into the longer we wait the more you

have to cut in the future to get out of

the hole it's not linear it's a

nonlinear cutting that's needed So the

faster you do it the less you have to

cut I think that is so important let me

just say that again for any person in

government listening the faster you cut

the less you have to cut yes and you can

do it in a manageable way you know a bit

here a bit there these bits add up and

if you don't you're going to have this

Arc of compounding so let's talk let's

talk politics for a second is Doge and

the concept of Doge enough or do we need

legislative action here there's a

combination of a question it's not just

Doge it's a matter

of less

regulation productivity

changes that might come from AI which

then have translate to

profits that might be capital gains

profits they might be

profits and all of that and

so but it really you know when I look at

it it

looks it looks very tough and and but

there's also you know Revenue also

tariffs produce Revenue so but yeah

people think um on the on the tariffs

people don't think of taxes as inflation

but taxes are inflation right because

you it costs you more

so the real question as you play with

the numbers is it's very very difficult

to know and be precise about how much is

going to come from uh productivity and

profit increases from the efficiencies

gained by Ai and new technologies how

much going to come from this and that we

don't honestly know but the important

thing is we're at the edge and not to

make it a crapshoot so and to get the if

the number must be 3% and so you should

have a clear passage to that 3% number