But of course, by the time Washington notices, it’s waaaaay too late!
This one took us by surprise. Not the fact that we’re headed to a crisis, but that The Wahington Post, the house organ of the Deep State, noticed that the deficit is exploding!
How could they say such a thing? After all, President Biden has been running around talking about how much he cut the deficit.
Somebody, maybe Jeff Bezos, must have said something!
Whatever it was, it’s too late. The Fiscal Year ends in three weeks, running a deficit of about $2 trillion.
Jason Fuhrman was an Obama administration economist. He thinks there must be “some weird, freakish thing going on.”
Count on an Obama economist to be surprised. But high inflation means Social Security payments ticked up, while Bidenomics had a spending deal targeted at just about every constituency. Federal spending is tracking a 16 percent increase so far this year.
Most people would have noticed higher interest rates, too.
But here’s Fuhrman expressing his surprise:
To see this in an economy with low unemployment is truly stunning. There’s never been anything like it,” Furman said. “A good and strong economy, with no new emergency spending — and yet a deficit like this. The fact that it is so big in one year makes you think it must be some weird freakish thing going on.
Where’s all this headed? It’s headed to a crisis. We’ll let Brian Riedl with the Manhattan Institute – noting that he is not an Obama economist – spell it out in simple terms:
“A debt growing much faster than the economy will drive up interest rates, reduce economic investment, and over time make interest payments the largest federal expenditure — risking a federal debt crisis,” Riedl said.