CNBC's "Fast Money" CNBC Special Report: America's Deficit Reckoning 7/7/25
Jul 7, 2025
Dan Iveson, Group CIO of PIMCO, manages an impressive $2 trillion, while Michael Mullen, former chairman of the Joint Chiefs of Staff, brings a military perspective. They dive deep into America's escalating national debt, exploring dire economic consequences if unaddressed. Topics include the alarming rise of budget deficits exceeding 6% of GDP, the impact on bond markets, and challenges to the U.S.'s global economic standing. The conversation also touches on the political divisions threatening democracy and the urgent need for fiscal reform.
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Widespread Fear Over U.S. Deficit
- U.S. deficit levels are currently the same size as the entire economy and expected to soar.
- Experts widely fear the severe consequences if the deficit gets out of control.
U.S. Debt History and Shift
- U.S. national debt has been a constant since its founding, funding various wars.
- Deficit spending became common from 1969, diverging from previous surplus-focused budgets.
Robert Rubin on Deficit Reduction
- Robert Rubin advised on deficit reduction under Bill Clinton and implemented a deficit reduction program.
- This led to the first balanced federal budget since 1969 in 1998.
