US Will ‘Substantially’ Increase Taxes – Closing $1,400,000,000,000 Budget Deficit

According to former Treasury Secretary Larry Summers, the US government is planning to implement “significant” tax hikes on its citizens in an attempt to address its $1.4 trillion deficit.

According to Bloomberg’s coverage of a recent speech, Summers predicts that uncontrollable inflation and debt will lead to further tax increases and a shift towards higher interest rates by the US government.

According to Summers, the debt of the United States is incredibly large, and reducing spending alone will not be sufficient to solve the problem. Consequently, implementing higher taxes will be necessary.

“We have a challenge before us that is of a magnitude that is unprecedented in our own history…

The US will, over time in ways that are largely not recognized by the political process, be likely to require substantial increases in revenue.”

According to Summers, the Federal Reserve’s previous rate hikes didn’t have the intended impact of curbing the economy as initially anticipated.

According to the economist, it is likely that there will be more interest rate increases in the future, whether they are in increments of 25 or 50 basis points.

Macro guru Hugh Hendry has just addressed the US banking system amid lingering turmoil in the financial sector.

In a new interview on Stansberry Research with Daniela Cambone, the hedge fund manager said the Fed’s tight monetary policy has increased the probability that banking customers could one-day face restrictions on the amount of cash they can pull out.

“If we went back a year ago, the probability you would assign to that would be almost zero. And all I’m saying is that probability, like mercury, is rising.”

He said the following:

“Why is it rising? It’s rising because we have experienced, I call it the Fed folly. One can say factually that this Fed hiking is the fastest and of the greatest magnitude. They’ve never done this before…

We no longer live in an environment where it seems prudent to have all of your money in the banking system, and certainly not congregated around one lender.”