What happens when you give super wealthy people tax cuts, while not guaranteeing any other revenue streams for your country, and zero investment in actual programs that might lead to stronger economic futures? Just plain old debt. As CNN reports, the United States will be selling off about $294 billion in debt—cause we need some cash!
Federal revenue is declining because of President Trump’s tax cuts, so the government needs to borrow more to make ends meet. At the same time, Washington’s borrowing costs have climbed rapidly in recent months. […]
At the same time, the Federal Reserve has stopped buying US debt as it unwinds a financial crisis-era program that was aimed at keeping borrowing costs low. And investors are growing more worried that inflation will force the Fed to raise short-term interest rates, making all kinds of debt more expensive.
“It’s a tricky dynamic for the markets,” Rieder said.
Trump and the Republican Party can hang their hats on the historical fact that this big sell off of debt hasn’t happened since the last Republican administration’s policies drove our country’s economy down the tubes in 2008. Plus, we will soon be spending even more as Trump and his Republican “fiscal conservative” Party signed off on a trillion dollar spending bill filled with tons of bad ideas.