Federal Reserve Chair Janet Yellen just said in Congress, “Given current taxing and spending decisions, debt is unsustainable.”
Thank you, Professor Obvious.
Of course, Federal debt growth is unsustainable. But what politician is going to vote for budget cuts to slow down or stop the out-of-control growth?
US GDP growth has slowed to a “new normal” post The Great Recession.
Entitlement spending, a political landmine, continues to grow unabated.
With the expected growth in mandatory (entitlement) spending, discretionary spending will be crowded out.
Given that The Federal Reserve is the largest holder of Treasury debt (since 2011), it is safe to say that we had better hope that Japan and China don’t lose interest in funding our entitlement spending.
Yellebn’s solution is to raise taxes. Brilliant!!
Thank you, Professor Obvious!