{"id":39323,"date":"2018-10-18T06:55:06","date_gmt":"2018-10-18T11:55:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39323"},"modified":"2018-10-18T06:55:06","modified_gmt":"2018-10-18T11:55:06","slug":"soaring-deficits-and-interest-costs-leave-the-u-s-looking-very-fragile","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39323","title":{"rendered":"Soaring Deficits and Interest Costs Leave the U.S. Looking Very Fragile"},"content":{"rendered":"
\"\"<\/div>\n

Soaring Deficits and Interest Costs Leave the U.S. Looking Very Fragile<\/a><\/h3>\n

If you take a step back and look at the macro picture of the U.S. economy \u2013 it resembles a huge, upside-down, glass pyramid.<\/p>\n

Constantly teetering back and forth \u2013 struggling with everything it has to keep from collapsing.<\/p>\n

And so far \u2013 it\u2019s done a good job maintaining its balance. But nonetheless, it\u2019s extremely fragile. And gets more so as each day passes by.<\/p>\n

All it needs is a slight push in the any direction and down it goes \u2013 shattering into pieces. . .<\/p>\n

It\u2019s not hard to see that the ever-growing U.S. deficits \u2013 along with the soaring interest costs on the National debt \u2013 are going to be the focal point of a worldwide crisis.<\/p>\n

Especially over the next few years. . .<\/p>\n

To start \u2013 the\u00a0U.S. deficit almost eclipsed $800 billion for the entire fiscal year<\/a>\u00a0(which ended September 2018) \u2013 a 17% year-over-year increase.<\/p>\n

And it\u2019s the largest deficit the U.S. has had in six years.<\/p>\n

\u201cHold up \u2013 isn\u2019t the economy doing well? Why\u2019s the deficit soaring?\u201d<\/em><\/p>\n

See \u2013 That\u2019s the problem<\/em>.<\/p>\n

The U.S. is borrowing at levels not seen since<\/a> the direct aftermath of 2008. When the economy was in shambles.<\/p>\n

As usual \u2013 government spending greatly outpaced revenue.<\/p>\n

U.S. Treasury \u2018outlays\u2019 (spending) increased $127 billion compared to government \u2018receipts\u2019 (income) of only $14 billion.<\/p>\n

That\u2019s a $113 billion more than last year\u2019s deficit.<\/p>\n

The main causes for the increased deficit was because of Trump\u2019s Tax Cuts (which brought in less federal revenue). And from soaring spending \u2013 which came from Defense\/Military, as well as Medicaid, Social Security, and Disaster Relief.<\/p>\n

\"\"<\/p>\n

It doesn\u2019t look good \u2013 does it. But here\u2019s the worst part \u2013 things are only going to get worse going forward.<\/em><\/p>\n

The Congressional Budget Office (CBO) recently published, \u2018The 2018 Long-Term Budget Outlook at a Glance\u2019<\/a> white paper.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Soaring Deficits and Interest Costs Leave the U.S. Looking Very Fragile If you take a step back and look at the macro picture of the U.S. economy \u2013 it resembles a huge, upside-down, glass pyramid. Constantly teetering back and forth \u2013 struggling with everything it has to keep from collapsing. And so far \u2013 it\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[19913,1653,1654,195,201,5326,22398,431,19915,827],"class_list":["post-39323","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adem-tumerkan","tag-cbo","tag-congressional-budget-office","tag-debt","tag-deficit","tag-fragility","tag-interest-costs","tag-interest-rates","tag-palisade-research","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39323"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39323\/revisions"}],"predecessor-version":[{"id":39324,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39323\/revisions\/39324"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}