The New CS Board

[jumanji0881]

$4-$5Trillion deficit in 2021 ? WOWSA !!!! -

Inflation Is Broken : https://www.mauldineconomics.com/frontlinethoughts/inflation-is-broken

My Comment : The current national debt is $28Trillion with $1Trillion of that from the first 5 months of 2021. So, adding $3-$4Trillion onto $28Trillion would mena the national debt would be $31-$32Trillion at 2021 fiscal year end. It's not hard to imagine that $40Trillion national debt by 2025-2026. But we may very well get that major financial crisis before then.

Excerpts :
I have been writing for many years that the US in particular and the Western “developed” world in general were approaching a time where none of our choices would be good.

We have arrived. Any choice the government and central banks of the US and the rest of the world make will ultimately lead to a crisis. Just as the choices that Greenspan and Bernanke made about monetary policy created the Great Recession, Yellen and Powell’s choices will eventually lead us to the next crisis and ultimately to what I call The Great Reset.

I believe we have passed the point of no return. Changing policy now would create a recession as big as Paul Volcker’s in the early ‘80s. There is simply no appetite for that. Further, the national debt and continued yearly deficits force monetary policy to stay accommodative.

The fiscal 2021 US deficit will certainly be more than $4 trillion and approaching $5 trillion, and the Treasury has more debt that has to be rolled over. The US government simply can’t afford higher interest rates. Financing costs would overwhelm the budget. Further, we are beginning to see Treasury auctions coming in “weak,” meaning investors demand higher yields.