The US government’s debt is rising at a historic rate, with $97.7 billion added to the national debt between August 16th and August 22nd, bringing the total to $32.759 trillion. Finance guru Larry Mcdonald has analyzed the US government’s spending over the last two decades, noting that since 2020, the US government has spent a staggering $25 trillion, which is equivalent to 68% of the entire S&P 500 market cap.Mcdonald believes that years of “financial repression” are likely ahead, and the Federal Reserve’s goal is to keep the real return people earn on savings below the rate of inflation. He believes that this is a way of lowering government debt and improving the debt-to-GDP ratio to a sustainable level. Mcdonald believes that the Fed is walking a tightrope and looking to play the long game, and that they don’t want inflation to go away, but to stay above the US government’s average interest rate expense.
| Information |
Details |
| Geography |
North America |
| Countries |
🇺🇸 |
| Sentiment |
negative |
| Relevance Score |
8 |
| People |
Larry Mcdonald, Fed, US government, savers, inflation |
| Companies |
Treasury’s FiscalData platform, CNBC, S&P 500, US government, Federal Reserve |
| Currencies |
None |
| Securities |
None |
