“It was another crazy news week, so it’s understandable if you missed a small but important announcement from the Treasury Department: The federal government is on track to borrow nearly $1 trillion this fiscal year — Trump’s first full year in charge of the budget.
That’s almost double what the government borrowed in fiscal year 2017.
Here are the exact figures: The U.S. Treasury expects to borrow $955 billion this fiscal year, according to a documents released Wednesday. It’s the highest amount of borrowing in six years, and a big jump from the $519 billion the federal government borrowed last year.
Treasury mainly attributed the increase to the “fiscal outlook.” The Congressional Budget Office was more blunt. In a report this week, the CBO said tax receipts are going to be lower because of the new tax law. …
The belief in Washington and on Wall Street has long been that the U.S. government could just keep issuing debt because people around the world are eager to buy up this safe-haven asset. But there may be a limit to how much the market wants, especially if inflation starts rising and investors prefer to ditch bonds for higher-returning stocks.”
The federal government is going to borrow nearly a trillion dollars this year. This is an 84% increase in borrowing and the cause is the Trump tax cuts.
Consider the implications of this: this huge increase in government borrowing is due to the tax cuts, not to any one-off spending program like the Obama stimulus. This is what the fiscal picture in Washington is going to look like year after year because of the tax cuts.
How does Washington expect to pay for this? The way we pay for it now is that countries like Japan and China use their trade surpluses to buy up our Treasury debt and gain leverage over the US government. China currently owns over a trillion dollars worth of US treasury bonds.
AMERICA USED TO BE GREAT
XI JINPING PLAYS 4D CHESS TOO
Note: As for all that talk about MAGAing and taking on China, it has been thrown out the window. China is now our banker just like Great Britain used to be when we were its colony.