Euros & Dollars: U.S. Treasury Buys Congress Time to Address Debt
The U.S. Congress has ignored the budget deficit for decades. Debt investors have almost run out of patience. Will Congress address the problem—or continue to play for time?
The U.S. Congress has ignored the budget deficit for decades. Debt investors have almost run out of patience. Will Congress address the problem—or continue to play for time?
In 18 months, the cost of the federal government’s debt has increased by 86%. Where will it be 18 months from now?
The latest policy statement from the euro zone’s central bank is a harsh message to all governments that have budget problems.
More and more finance experts express worry about the U.S. government’s debt. Only Congress can prevent a fiscal crisis, but time is running out—fast.
Every time there is a disturbance in the market for U.S. debt, the American economy inches closer to a full-scale debt crisis. We just moved another inch or two.
The trend with worried debt market investors continues. If this gets worse, higher—not lower—interest rates will be the least of our concerns.
The president of Argentina wants to make it illegal to print money for budget deficits. Economic theory says he is right, but the politics of the welfare state may get in his way.
The U.S. government now borrows 35 cents of every dollar it spends. Congress, meanwhile, is busy trying to keep the offices of the federal government open.
The U.S. Congress must make a choice—and make it now. Do they want to play fiscal defense and let the debt grow? Or do they want to play fiscal offense and solve the problem for good?
An audit court warned on Monday that the supplementary budget for 2023 is “extremely problematic under constitutional law,” because it retroactively invokes an emergency for a budget year that is almost over.
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