The US faces a fiscal dilemma as record spending, deficits, and debt levels clash with inflationary green energy policies, potentially sparking a conflict between the Federal Reserve and government.
Key points:
- Record non-crisis spending, deficits, and debt levels pose fiscal challenges with no end in sight.
- Green energy policies, like those in Germany, have led to doubled consumer energy costs.
- Regulations and limitations on fossil fuels increase manufacturing costs, impacting consumer prices.
- Decline in labor force participation rate correlates with rising US government debt since 1999.
- Economic strain deepens as fewer people work and government spending rises.
- CBO projects rising debt/GDP despite relatively low unemployment rates, signaling economic concerns.
- Concerns amplified by factors including inflation, job shifts, annual deficits, and overall debt.
While the US is much less susceptible to energy supply and price shocks, our fiscal policy is MUCH worse.
We have record non-crisis spending, deficit, and debt levels, with no end in site to the money printing …
"Green energy policy" is inflationary. When implemented in… pic.twitter.com/hIW8um0yDz
— Wall Street Silver (@WallStreetSilv) April 29, 2024
Yes, and CBO projects relatively low unemployment rates for decades to come (and yet still projects debt/GDP to grow significantly even under those assumptions). What happens if the LFP continues to fall *and* unemployment rate rises beyond these assumptions?
Source: CBO pic.twitter.com/qa8mDD4Sj3— David Sommers (@dgsommersmkts) April 29, 2024
The US labor market is only strong in the headlines.
13 of the last 14 months of job numbers have been revised downward.
Also, when excluding government jobs, 11 out of 12 months in 2023 were revised lower, the most since 2008.
— Global Markets Investor (@GlobalMktObserv) April 29, 2024
The US economy now has:
1) 4 months of hotter inflation
2) ~1.5 million full-time jobs decline with 1.9M part-time jobs created over a year
3) $2 trillion annual deficits
4) ~$34.5 trillion in debtWhat could possibly go wrong?👇https://t.co/0tty0Bjv0A
— Global Markets Investor (@GlobalMktObserv) April 29, 2024
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