One week ago, noted Stanford University economist John Taylor testified at a hearing before the U.S. House of Representatives’ budget committee, whose members are reexamining the economic costs of the national debt. After the hearing, Taylor summarized his remarks and reflected on previous testimony he provided on a related topic back in 2015:
Less than two months after acting to bail out the nation’s money markets because of a liquidity crisis that arose from a surge in U.S. government borrowing to fund its spending, Federal Reserve Chair Jerome Powell testified before the U.S. Congress that the federal government’s current course of debt-fueled spending is on an “unsustainable...
Read More »
The U.S. Treasury Department has released its final monthly treasury statement for the federal government’s 2019 fiscal year, including its final accounting for the entire year. It paints a scary picture of how the growth of government spending is behind the government’s resurgent annual budget deficit, which totaled $984 billion for the year, narrowly...
Read More »
The new financial crisis could have been avoided, if only a bipartisan majority of politicians in Washington, D.C., could have restrained the growth of their spending to sustainable levels.
In truth, the surprise trillion-dollar deficit for the first 11 months of fiscal 2019 really isn’t much of a surprise.
The Treasury Department has recently revised and updated its estimates of who the U.S. government has borrowed from for its 2018 fiscal year.
What would it take to balance the U.S. government’s budget over the next 10 years?
The commercial war between the world’s superpower and the Chinese dictatorship has affected the U.S. economy, which has dropped from an annual rate of growth of 4 percent to 2 percent.
The sale of U.S. Treasuries in a relatively short period of time appears set to cause problems in global credit markets.
As in 2009 and 2010, it is unlikely that we will see greater prosperity in the future as a result of the 2019 budget deal.