As Donald Trump enjoyed his pass, and was formally named, the Great Budget Law of Congress this week, sown seeds of doubts about the worldwide springing.
Trump’s budget fee no crash of strangers of plan, not at least Trump is Ally Musk, who is called “a nasty disgusting”.
A number of growing debt leaves some to wonder if there is a limit why the whole world will borrow my uncle.
Those doubts have always shown recently with a weak price for the dollar and senior investors want to borrow money in the United States.
It requires borrowing this money to make a difference between what you find and how they are used annually.
From the beginning this year, Dollar has fallen 10% against a pound and 15% against Euro.
Although US borrowing costs have been strengthened, the difference between long-term loan amounts – known as the Regve Curve – is increased, or signed more concerned about our long-term loan.
And that’s the case that the US reduces the price of a little interest than EU and the UK, which used to do the dollar because investors can get higher inflation in bank deposits.
The world’s largest Hedge Fund founder, Ray Dalio, believes our loans is in paragraph.
In its current trajectory estimate the US will soon spend $ 10TN a year with a loan and interest payment.
“I hope that [US] The government’s financial situation is located in a place, if this is now being dealt with, liabilities will create standards where they can be treated without great abuse, “he said.
Now is this pain?
The original option is a major reduction in government spending, increased increase in taxes or both.
Ray Dalio suggests that a budget hidden is from 6% of 6 to 3% soon lead to trouble in the future.
The Trump’s new budget is cut use of money, but also cut the taxes on top, so the current political trajectory goes another way.
Second, as previous disasters, the United States Bank can print a lot of money and use a government debt – as we saw the major financial crisis of 2008.
