(5 July 2024 – United States) The US will be forced to fund an enormous budget deficit increase with short-term debt, posing significant ramficiations for controlling inflation and credit market stability.
The unprecedented increase in the budget deficit stemming from the Ukraine and Gaza conflicts is alarming analysts who warn the United States treasury lack of fiscal discipline will inevitably elevate borrowing costs.
Neither President Joe Biden or rival Donald Trump possess the tools required to restore financial management discipline.
“We are spending money as a country like a drunken sailor on shore for the weekend” stated Barclays Global Chair of Research, Ajay Rajadhyaksha.