Financing the U.S. government’s mega budget deficit – the gap between government spending and tax revenue – has become an act of madness. Just this week, the U.S. Treasury flooded the market with $180 billion of new debt. Did you buy some?
Washington’s spending is completely out of control. Even the International Monetary Fund (IMF) is speaking up. Its recent World Economic Outlook points to spending “that is out of line with long-term fiscal sustainability.”
Of note, are expanding U.S. budget deficits, which ballooned from $1.4 trillion in fiscal year 2022 to $1.7 trillion in fiscal year 2023. This trend is continuing. We’re now over six months into fiscal year 2024 and Washington is on track to hit a deficit of over $2 trillion.
Each year may start fresh. With a new deficit to accrue. But each year’s deficit doesn’t go away when the new year starts. These deficits, which are are racked up year after year, are stacked onto the national debt – now over $34.6 trillion. “Something will have to give,” the IMF warned. Continue reading