Jim Millstein, the Guggenheim Securities co-chair, is calling on the United States government to get its financial house in order, warning of a “fiscal disaster.”

In a new interview with Bloomberg, Millstein says that government spending is by far outpacing revenues, creating an unsustainable financial situation.

“We’re running a 7% of GDP deficit this year, which means that debt is increasing by 7% a year, whereas the economy has only been growing at 2% to 3% a year. So we are basically becoming more indebted over time, because the growth of the economy is not outpacing the growth of the debt. So there’s a massive need for what we call in the trade fiscal consolidation. We need to get our house in order and create revenues closer to spending.”

In a separate Bloomberg interview, Millstein says that the US’s fiscal situation is concerning investors, which is why long-term Treasury yields have been rising lately.

Millstein says the ten-year Treasury yields are increasing “because of the imbalance in the federal government’s finances and the huge amount of deficits they have to finance.” He also says there’s going to be “a huge supply of Treasuries coming to the market.”

According to Millstein, the rising ten-year yields are the US’s largest financial challenge at the moment, as they increase the interest costs of existing and future debt.

Millstein says the US may be facing a similar situation that occurred in the 1990s when bond yields rose enough to convince politicians to take action to lower the deficit.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post $345,000,000,000 Asset Manager Urges US To Get House in Order, Warns Debt Now Increasing Faster Than Economic Growth appeared first on The Daily Hodl.

Jim Millstein, the Guggenheim Securities co-chair, is calling on the United States government to get its financial house in order, warning of a “fiscal disaster.”

In a new interview with Bloomberg, Millstein says that government spending is by far outpacing revenues, creating an unsustainable financial situation.

“We’re running a 7% of GDP deficit this year, which means that debt is increasing by 7% a year, whereas the economy has only been growing at 2% to 3% a year. So we are basically becoming more indebted over time, because the growth of the economy is not outpacing the growth of the debt. So there’s a massive need for what we call in the trade fiscal consolidation. We need to get our house in order and create revenues closer to spending.”

In a separate Bloomberg interview, Millstein says that the US’s fiscal situation is concerning investors, which is why long-term Treasury yields have been rising lately.

Millstein says the ten-year Treasury yields are increasing “because of the imbalance in the federal government’s finances and the huge amount of deficits they have to finance.” He also says there’s going to be “a huge supply of Treasuries coming to the market.”

According to Millstein, the rising ten-year yields are the US’s largest financial challenge at the moment, as they increase the interest costs of existing and future debt.

Millstein says the US may be facing a similar situation that occurred in the 1990s when bond yields rose enough to convince politicians to take action to lower the deficit.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post $345,000,000,000 Asset Manager Urges US To Get House in Order, Warns Debt Now Increasing Faster Than Economic Growth appeared first on The Daily Hodl.