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How to Protect your Wealth by Investing in AI Tech Stocks

Why US Annual Budget Deficits Are Getting Worse

Economics / US Economy Sep 07, 2023 - 10:36 PM GMT

By: Nadeem_Walayat

Economics

The pandemic a once in a 100 year event sparked rampant deficit spending to bailout the economy, that was 2020, whilst 2021 was nearly as bad! And 2022 did show an improvement by reverting back to pre-pandemic deficit era extremes. However the 2023 deficit is once more ramping up and running at twice the pre-pandemic extreme rate.


See that huge pandemic spike during 2020, well get ready for it to be surpassed over the coming years! Soon the great Financial Crisis bailout will look like an everyday drop in the ocean!

The US debt mountain has now passed £27 trillion, 100% of GDP after adding nearly $4 trillion for 2020-21! Which makes a mockery of the crap that flows out of politicians mouths that they will balance the budget, pay down the debt which NEVER HAPPENS!

Once the government increases spending it is near impossible to reverse that spending even if it were temporary such as in response to the pandemic which saw the US government DOUBLE expenditure, now 3 years on we see that expenditure has NOT reverted to trend, but sits over $1 trillion higher than where it should be that looks set to accelerate over the coming year which will translate into MORE DEBT.

What are the consequences of the US government printing and spending $4 trillion dollars during 2020 and then continuing to spend between $1 to $2 trillion a year above trend since? HIGH REAL INFLATION! So what should you do? Invest in assets such as real estate and good stocks that cannot be easily printed. Thus in these graphs you have your housing and stocks bull market smoking guns. All whilst the perma fools continue to bang the decades long drums for always imminent debt bubble bursting deflation. All whilst the money printing induced inflation mega-trend continues on it's exponential trajectory.

This article is excerpted from my extensive analysis Inflation Bond Fire of the Vanities Breeds Opportunity that was first made available to Patrons who support my work. So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $5 per month, lock it in now at $5 as this will soon rise to $7 per month for new sign-ups. https://www.patreon.com/Nadeem_Walayat.

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※ Patrons Get FIRST access to all of my In-depth analysis and high probability Trend Forecasts, usually 2 full months before the rest of the world. Notified by Patreon by email as well as posted on this page and I will also send a short message in case the extensive email does not make it to your inbox.

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S&P

Targeting 4600 Mid Summer 2023 Top followed by correction to below 4150 into October 2023.

Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $5 per month. https://www.patreon.com/Nadeem_Walayat lock it in before it rises to $7 per month for new signup's.

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Your trimmed the FOMO to buy the Dip analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2023 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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