The US Debt is Rising at an Alarming Rate
The US government’s outstanding debt is increasing rapidly, with $97.7 billion added to the national debt in just one week. This brings the total debt to $32.759 trillion.
Key Points:
- Since 2020, the US government has spent $25 trillion, equivalent to 68% of the entire S&P 500 market cap.
- Finance guru Larry Mcdonald describes this spending as “jaw-dropping” and predicts years of “financial repression” ahead.
- The Federal Reserve aims to keep the real return on savings below the rate of inflation, effectively implementing a tax on savings.
- Mcdonald suggests that significant tax increases and spending reductions are unlikely to be approved by Congress.
- The Fed’s strategy is to slowly reduce government debt over a 15-year period, without causing hyperinflation.
Hot Take:
The US government’s excessive spending and increasing debt is a cause for concern. The Fed’s approach of financial repression may harm savers and lead to long-term economic challenges. It is crucial for the government to implement sustainable measures to address this issue and ensure the country’s economic stability.
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