The United States has experienced a significant acceleration in fiscal collapse, with the Treasury issuing $7 trillion of debt in just three months, matching the peak levels of the Covid-19 pandemic without the presence of an actual health crisis. This amount doubles the previous record that had stood for 231 years. Analysts highlight that the U.S. government's debt machine appears out of control, with its budget deficit more than twice as large as those of Canada, the Eurozone, Japan, and the UK combined. The U.S. has been primarily funding this through the issuance of very short-term debt, a strategy deemed unsustainable by experts. The fiscal deficit's rising trajectory relative to GDP growth is further exacerbated by political pressures from both sides of the aisle, with calls for more tax cuts and increased growth stimulus spending. Since January 2021, U.S. government debt has surged from $27.7 trillion to $34.5 trillion, marking an over 24% increase in just three years.
🇺🇸 US Government Debt is Up Over 24% in 3 Years January, 2021: $27.7 trillion Now: $34.5 trillion https://t.co/afDeQ7tj9z
🇺🇸 US Government Debt January, 2021: $27.7 trillion Now: $34.5 trillion
The US fiscal deficit is on a rising trajectory relative to GDP growth. Trump wants more tax cuts & Biden seeks greater growth stimulus spending. Either choice means escalating fiscal deficits...until something bad happens https://t.co/NH7cXoLTED
The US issued lots of Treasury bills (red) when COVID hit, building a war chest in the Treasury general account (black). Normal. It rebuilt this account in 2023 from low levels, also with short-term debt. Normal. But it's still issuing mostly short-term debt even now. Not normal. https://t.co/SHlfm4spVM
The US gov't debt machine is truly out of control. The US (lhs) runs a budget deficit that's more than twice as big as Canada, Euro zone, Japan & UK combined (rhs). More important, the US - unlike everyone else - funds all this with very short-term debt (red). What are we doing? https://t.co/JlbgJpF4Yy
Fiscal collapse accelerates as Treasury issues $7 trillion of debt in just 3 months. That matches the worst of Covid -- no pandemic needed. And it's double the previous record that had stood for 231 years. https://t.co/e0W0y2n6cm