U.S. Deficit Clocks In Just Under $2 Trillion
- Deficit balloons 12 percent in a single year
- Washington’s spending addiction hits a staggering $1.8 trillion
- CBO data confirms fiscal sanity has left the building
- Taxpayers on the hook as debt service costs spiral
Brief Summary
Washington’s addiction to printing money is showing no signs of recovery, with the federal budget deficit surging to nearly $2 trillion for the fiscal year ending in September. Despite the usual promises of fiscal responsibility, the latest figures from the Congressional Budget Office reveal a 12 percent increase in red ink, proving that the government's appetite for spending far outpaces its ability to bring in tax revenue.
Why This Matters
When the government spends money it doesn't have, it has to borrow it, which keeps interest rates higher for longer to attract buyers for all that debt. This means your mortgage, car loans, and credit card rates are going to stay elevated because Uncle Sam is hogging all the capital. Furthermore, this level of deficit spending is a quiet tax on your savings—as the supply of money grows to cover these debts, the value of every dollar in your pocket loses a little more of its purchasing power to inflation.