Just In: US Deficit Has Just Surpassed $1,600,000,000,000

It has been just revealed the fact that the US deficit has surpassed $1,600,000,000 these days. Check out the latest worrisome reports about the matter below.

The new notes reveal the fact that the former US Treasury Secretary Larry Summers said that America is on a dangerous path as the nation’s budget deficit managed to hit the following number: $ 1.613 trillion.

During an interview with Bloomberg at the Aspen Economic Strategy Group Summit, Summers made it clear that the US is heading towards a massive deficit that will dwarf its revenue. He emphasized that future deficit projections are grossly underestimated and that a deficit of almost 10% of GDP is highly probable.

“I have written and said that I don’t think we’re on a sustainable fiscal path. I think the Congressional Budget Office is pretty pessimistic. It thinks the deficit is going to be in the 7% range once we get out eight or 10 years. They think we’re going to be reducing defense spending relative to GDP, I think that’s wrong given the threats we face.”

The notes continued and said:

“They think that treasury bill interest rates can average in the low twos, I think that’s not close to right given the strains we face. They assume – because they’re required to – that all of the Trump tax cuts will phase out. I don’t think that’s going to happen. They haven’t really fully recognized that revenues are coming in well below expectations. This year, I think if you do the forecast right, you’re looking at a number close to 10.”

Summers does not think the United States is going to tell bond holders they’re not getting money. The fact that we worked through an incredible toxic political environment and raised the debt limit settled that issue.

Stay tuned for more news bout the financial space.