Fiscal Deficit Numbers are in for February. The Fiscal Picture is Grim.
Record deficit spending. A $1.1 Trillion fiscal deficit fiscal YTD through February. That implies a $2.6 Trillion deficit for FY’25, which would be $13.4 Trillion in cumulative deficits since 2020.
Price inflation. This deficit spending is the reason for the significant Dollar devaluation that has been imposed on Americans over the past 5 years, resulting in higher prices across the board and a lower standard of living.
What is Congress thinking? Yet, Congress is about to pass a spending bill that maintains the status quo.
Treasury market as fiscal police. The Treasury market will eventually curtail spending as yields will generally move higher should this deficit spending persist…
Powell will only make it worse …unless of course Powell & his band of harmful bankers exercise yield curve control for long bonds, which will only exacerbate the Dollar devaluation / price inflation problem.
