United States, Congress, Two Trillion Dollars discussed on Bob Brinker's Money Talk


The united states would run an annual deficit of over a trillion dollars when we have full employment economic growth nine years into a recovery if there was ever a time for a balanced budget it's now we have the office we're going any other direction because of this recent spending bill that was passed by congress that blew the lid off of everything the freedom caucus ever believed it blew the lid off of everything the tea party ever believed in about fiscal responsibility they below at the smithereens adding on all the additional deficit uh activities it's going on you can throw in the tax cut you can throw in anything you want because the estimate right now is they're going to about one point two trillion dollars in the next fiscal year starting october first now add these numbers up in the fourth quarter of this year we will be needing to finance in the open market close to two trillion dollars annual in new financing think about it because i and i'm talking about the marketplace year the marketplace will have to finance this supply because you're going at once we get into the fourth quarter you'll have this six hundred billion annual rate of quantitative tightening with these securities being thrown into the open market accompanied by an annual deficit rate of one bout one point two trillion based on current numbers starting in the fourth quarter of this year which is the first fiscal quarter of the next government here one point eight trillion dollars thrown onto the bond market let me ask you a question you think interest rates will go down with us supply with the economy a full employment with inflation skin concerns on the on the radar screen i don't think so you think they'll stay the same well that would be interesting wooden given that supply or do you think they'll go up so far there going up and the last year and a half they've more than doubled even the 10year treasury and by the way the thirty years also gone way up to over three percent now so these are questions that are investors are are are pondering and one of the.

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