Goldman Sachs says the Trump’s spending plan will not stop the ceasefree of the National Debt Since World War II “Sustainable”

Spend invoice spent by the Republicans, increased The tariff is comingWhen excluding interest payments, Goldman’s Manuel Abecasis, David Mericle and Alec Phillips admitted to a note on Tuesday. Combined with rising Debt costsThey said, the bill releases the general deficit course in fact.

“But it is the unstable the road.

As the specified graphs, the scale of debt progress depends on the scale of debt, which depends on how the subsequent couples move in decades. Currently, $ 36 trillion dollar National debt accounts and treasury department for about 120% of GDP receive more borrowings compared to the rising value of its service.

The United States pays more debt more than that Medicare and protection. These interest payments will be followed by $ 1 trillion next year, only the government as the largest expense, according to To a responsible federal budget committee, a meditation center.

“If the debt grew up large enough, the” Goldman team “wrote,” Interest expenses can be so large that the stabilization of debt, rarely economically expensive financially and politically. ”

The first Trump and Biden administrations responded to the Coven-19 pandemia with a similar budget. Although the US economy is fully employed, Spigot has never been extinguished.

Non-minute Congress Budget Department Approximate The version of the GOP spending invoice passed by the house will increase by $ 2.8 trillion over the next ten years. White House and some Republican MPs move This projection should not include the expansion of TRUMP’s 2017 tax discounts designated this year without the law this year.

But the Crux The problem of $ 36 trillion Does the debt do not know what level of debt, Gennadiy Goldberg, Head of US Rates Strategy in US TD securities Fortune.

There are Treasury Secretary Scott Bessent gossip The US government has a “spending problem”, but is not a “income problem.” Goldberg agrees with the former dispute, but the United States did not provide much information compared to the country’s GDP and government foreign substances.

“Thus, taxes are forced to rise up, the costs are going down or a combination of two people,” Goldberg said last month. “And this sounds simple, but very much politically, very complicated to understand.”

Higher interest rates would increase the pressure of cutting

He puts future MPs in a stronger place to prevent the action, but if the debt costs rise.

Provides a product on long-term US Treasury bonds Stayed high Investors to reduce interest rates as a patient expects federal reserves and anxiety It can continue to put pressure on high blood pressure on inflation and a possible revival.

There are also fixed income experts watch closely Any change for foreign demand for US debt. Rising trade and geopolitical tensions violate the state of the dollar Reserve CurrencyThe US government would borrow in higher degrees as it is made of habit.

This means that Congress may have to make both expenses and taxes, which can be increasingly harsh choices. When speakers are waiting for a very long time, it can be a historical stiffness to prevent disaster.

“This can be something in the scenario, or a large financial consolidation and a sustainable financial surplus can be self-defeated, if GDP decreases, the ratio cannot be reduced.

Of course, politicians would like to print more money to pay for the bill of government. The Weimar Republic of Germany tried to tactics after the World War II. There was a result hyperinflation with damagedEconomic malfunction and social disturbances that cause the Nazi party to rise.

Warning from history, but not always careful by governments.