The drip-drip US debt crisis
Rising deficits and debt-servicing costs no longer seem to have the power to restore prudence
Source: Financial Times
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DW NOTE
The US deficit hit $1.4 trillion through June, 3% worse than last year, with debt service now consuming more revenue than defence. The remarkable fact is not that deficits are rising — they've risen every year since 2015 — but that markets continue pricing Treasuries as if this ends in anything other than inflated surrender. A 4.74% 10-year yield with 3.4% inflation and a $1.9 trillion hole is a market that still believes in fiscal furniture that was sold years ago.