Just in time for the passing of the US budget, my new Reuters column is out. It deals with the long-term consequences of this act of fiscal recklessness.
US fiscal folly could create big, beautiful debt spiral
LONDON, July 3 (Reuters) - The U.S. tax and spending bill passed on July 3 is expected to add more than $3 trillion to the country’s deficit over the next decade. If the current debt trajectory continues unabated, it could set off a slow motion debt spiral that could endanger the Federal Reserve’s independence.
The sobering long-term debt projections of the Congressional Budget Office may actually understate the likely impact on U.S. debt-to-GDP levels of President Donald Trump's "One Big Beautiful Bill".
Read the full article here: https://www.reuters.com/markets/us/us-fiscal-folly-could-create-big-beautiful-debt-spiral-2025-07-03/
The joke I heard at the Graduate School of Business down the street is that the 7th Chapter 11 filing of a DJT-controlled entity is going to be for the United States of America.
Thanks for bringing up this matter. Unfortunately many ppl prefer to close their eyes to unpleasant numbers.