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September 2024 Newsletter: Why Nothing Stops This Fiscal Train
This issue examines what’s causing the structurally high fiscal deficits in the U.S. economy, why the probability of meaningfully reducing them anytime soon is vanishingly low, and what investment implications this may have. For an initial visual, the Congressional Budget Office projects structurally high deficits forever unless meaningfully addressed, despite the fact that they assume no recessions will ever occur, and deficits tend to be even larger when recessions do occur: chart So that’s the conservative baseline, which calls for over $20 trillion in net new public debt additions over the next 10 years. ... (full story)