Joe Biden has been warned that another “devastating” financial collapse is headed towards the US as the national debt soars to new heights.
The federal deficit is expected to double to $2 trillion (£1.58 trillion) this year, increasing the national debt to $33 trillion (£26.4 trillion) and raising fears the president’s government will shut down if it fails to pass a new law. Budget or stop.
Earlier this month, the White House pleaded with Congress to accept an extension of short-term funding to avoid a government shutdown that could occur by the end of the month.
The Democratic-controlled House and Senate are scheduled to reconvene for about 12 days before funding expires on September 30.
Steve Moore told GB News he could not put a timeline on the crisis
GB News
Speaking to GB News, Steve Moore, one of Donald Trump’s former economic advisers, warned that a financial collapse could be imminent if the national debt continues to rise.
“I think if we continue to increase the deficit, there will be a financial crisis at some point,” Steve Moore said.
“I don’t know if this will happen in three weeks, three months or three years, but this cannot continue.
“This is just inflating a bubble that gets bigger and bigger and bigger and bigger. And at some point, if you don’t start deflating that bubble, it’s going to burst. That’s the real danger.”
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Although the US economy is relatively strong, the federal deficit has not shrunk as expected, meaning Americans may be exposed to larger interest payments and lower tax revenues.
“Although critical work continues to reach bipartisan and bicameral agreement on FY 2024 appropriations bills, it is clear that a short-term continuing resolution (CR) is needed next month,” an Office of Management and Budget spokesperson said. Axios.
The high deficit is expected to undermine Biden’s chances during the 2024 presidential election after he tried to take credit for reining in the budget.
Despite the current $2 trillion spending imbalance, the spending imbalance was much larger in 2021, reaching $2.8 trillion (£2.22 trillion) after unprecedented Covid spending, according to Congressional Budget Office figures.
“We have to learn from 2008, when we had the last big bubble, which was devastating,” Moore warned.
“We had massive business failures. You had the big banks that needed big government bailouts. We had double and triple unemployment.
“Just like a cancer cell, it’s best to treat it before it spreads. We don’t do that with our debt.
“We just whistle Dixie and pretend he doesn’t exist.”