Read the story here. Advertise at Before It's News here.
Profile image
By Global Macro Monitor
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

WTF? Budget Deficits At 7% Of GDP

% of readers think this story is Fact. Add your two cents.

By The End Of The Decade?

America’s budget deficit is set to balloon as its population ages, the cost of handouts swells and the government’s interest bill rises.  We estimate that deficits could reach around 7% of gdp a year by the end of this decade—shortfalls America has not seen outside of wars and economic slumps. Worryingly, no one has a sensible plan to shrink them…Governments elsewhere face similar pressures, and appear just as oblivious. All are stuck in a fiscal fantasyland, and must find a way out before disaster strikes. – Economist, May 6-12

We’ve been all over this, and the chart we posted last weekend (see below) illustrates the 12-month rolling fiscal deficit is already pushing up against 7 percent of GDP.   The U.S. Treasury will experience a decent seasonal surplus in April as tax receipts roll in, keeping the 12-month rolling shortfall flat (as last April’s surplus rolls off) at around 6.8 percent.   Deficits don’t matter until they do, and they will.   

I used to think a U.S. government default on its obligations was about as probable as the sun not rising tomorrow, about the same probability as the Capitol being ransacked one day by a mob of igno-marauders.  Not as easy to handicap now given the many crazies running the Capitol City Zoo.

It doesn’t take a genius, or Chat GPT, for that matter, to project the future timeline:  

Larger deficits –>  Monetization –> Inflation.     


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.