The US Budget Deficit Is Worrisome, Dudley Says
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- เผยแพร่เมื่อ 25 มิ.ย. 2024
- Bill Dudley, former New York Fed President, Bloomberg Opinion columnist and Bloomberg Economics senior advisor, says the US budget deficit is unsustainable and investors should be worried. He speaks on "Bloomberg Surveillance."
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Always very worrisome but only at election time lololol
The US economy since 1971 getting off gold standard, is required to continuously run deficits. World governments welcomed a fiat currency system and have all entrusted the US to be the issuer of the world reserve currency. Essentially a lot of wealth creation is a function of money supply expansion. The US cannot risk not running a deficit otherwise wealth creation will slow and economies may start to use other means of currencies. I am not sure why the US is using financial sanctions so strongly. This is a major policy mistake as it incentives countries to perhaps start thinking of building assets denominated in other currencies. But to summarize the world’s wealth is dependent on the US dollar. Unless other world governments begin to build new reserve assets denominated in other currencies..the world is enslaved to the US dollar.
To add on this the US has been abusing its position/power of being the worlds issuer of reserve currency. For example, post 2008 GFC the Fed started using an artificial tool to prop up world economies known as quantitative easing. This process artificially provides liquidity, drives down rates, and increases the world’s reserve assets denominated in US dollar due to lower rates raising the PV of US bonds. Post COVID-19 stimulus efforts makes 2008 bailout/QE look very small in comparison. The massive increase in money supply expansion I think lead to structural monetary inflation.
All true, however, my guess is there’s a reason why eastern central banks are buying record amounts of gold. They are preparing for the inevitable collapse of the dollar and China is posturing to be next reserve currency. It’s unfolding now and BRICS are the indication.
Given how much the Federal Reserve has already expanded its balance sheet, what are the chances that the Fed starts a policy of interest rate suppression if they deem interest rates on treasuries to be excessive? The did so after WW II when debt to GDP was high - they might do so again.
bye bye American stock and hallo under valued state own Chinese / HK stock with 7-8% yield, payout 30%, PE below 4 and 40-90% under its quantitative fair value. Did I also mention zero dividend tax and zero capital gain tax as a local buying these stock.
These same people have been yapping about the same looming debt catastrophe for hundreds of years. I wonder if we’d accept a weatherman being wrong for that long?
Billioneires should start paying taxes...all tax burden on payroll slaves...end favorable cap gains rate...why paycheck is taxed much more than cap gains?
Who cares?
what a tool
No shit you say there Bill……you’re really a genius big boy.