Unruly politicians and unchecked spending risk US debt catastrophe

Financial Times/Michael Strain/5-26-2023

“The nation has arrived at the brink of disaster because of a collision of structural problems in the economy and political system. A deal to increase the debt ceiling and cut certain categories of federal spending would fix the immediate crisis, but would not address these festering problems.”

USAGOLD note: The real debt crisis……The problem of too much debt and its future growth overshadows any debt ceiling arrangement the politicians might stitch together now. Michael Strain is the American Enterprise Institute’s director of economic policy studies.

Sources: St. Louis Federal Reserve [FRED], US Department of the Treasury, Fiscal Service