Rebel Capitalist News Deficits Just EXPLODED Higher...What Does It Mean For The Economy?
5 snips
Dec 13, 2024 The rise of the U.S. budget deficit is alarming, with figures surpassing pandemic peaks. Cryptocurrency's market surge adds another layer to the complex national debt scenario. The relationship between government spending and treasury yields is more intricate than it appears. Rising inflation expectations present challenges that can't be solved by merely reducing deficits. Emphasizing economic growth over deficit obsession could lead to better outcomes for struggling Americans.
AI Snips
Chapters
Transcript
Episode notes
Government Spending's Real Impact
- The real problem with government spending isn't the deficit itself, but its distortion of the economy.
- This distortion negatively impacts the standard of living for average people.
Drivers of Treasury Yields
- Treasury yields aren't primarily driven by supply, but by growth and inflation expectations.
- Evidence from historical data supports this, showing yield decreases despite low treasury supply during deflationary periods.
Prioritizing Deregulation
- Focus on reducing regulations to facilitate private sector growth, even if the deficit remains unchanged.
- This growth can boost incomes and improve the standard of living more effectively than focusing solely on deficit reduction.