Subject: Re: Dow rallies more than 700 points after Powell hint

The CBO made a forecast while tariff revenues are rising. Nothing dishonest about that. But a ten-year forecast is never what we get in reality.

Of course. A lot of stuff happens between now and then. The CBO does the best it can, with the data in hand.

Referring back to the link about the $4T/10 years in tariff revenue, Google's AI thing gives me this answer for the cost of the tax cuts in the BBB, in isolation.

The tax cuts in the "Big Beautiful Bill" are projected to reduce federal tax revenues by about $5.0 trillion over a decade (2025-2034) on a conventional basis,

Add a Trillion in money not spent on Medicaid, to the $4T in tariff revenue, and the tax cuts of the BBB are entirely covered, hence redistribution, from people who buy stuff, to people who benefit from the tax cuts.

Mr Market seems to not care one whit about inflation, from monetary stimulus, as he went pretty bonkers today, at the prospect of cheaper money.

Steve