The heavy weight of Treasury issuance and bond markets is expected to increase significantly in the coming months and beyond, indicating a growing fiscal excess that poses long-term challenges. Concerns are raised over the unsustainable fiscal path of the US, with a substantial portion of income taxes already going towards servicing the national debt, which is deemed unsustainable and a threat to the economy. Experts highlight the rapid growth of interest payments on the federal debt, projecting potential repercussions on national defense and social safety net funding in the future.
John Cogan joins @Policy_Ed to detail how interest payments on federal debt alone will account for 40% of personal income tax revenues in 10 years, leaving the US unable to fully fund our national defense & fulfill its social safety net obligations: https://t.co/uJGLo1T7hq https://t.co/FmOo50Hp6E
In fact, the reason I started emphasizing macro in 2016/2017 is that it was the first time in decades that the deficit as a % of GDP began rising during an economic expansion. That was the early stage of structural fiscal dominance. https://t.co/MbUszSP1nS https://t.co/AbmQOkSKJL
We are in an era where fiscal deficits are structurally larger than the rate of bank lending and are set to grow in perpetuity, and so fiscal details tend to matter more than monetary ones. https://t.co/Qp1iZ281XZ
Interest on the debt is the fastest growing part of the federal government’s budget. The nation’s debt is a direct threat to the stability of our economy. https://t.co/HdEj9PiutH
Last month, 40% of federal income taxes went towards paying the interest on America’s debt. This is not sustainable. https://t.co/lrfi1OH123
Last month, 40% of income taxes went towards paying the interest on America’s debt. This is not sustainable. https://t.co/lrfi1OH123
The US is on an unsustainable fiscal path… https://t.co/MVxz7gIyq5
The heavy weight of Treasury issuance ond bond markets will not only grow in coming months, but will likely intensify later in this year and next...Fiscal excess is growing, not just a brief election year ploy https://t.co/Z6NBjjiJOo