Even if the U.S. avoids some of the worst-case scenarios, ballooning debt and the cost of servicing it could eventually slow economic growth and make the burden unsustainable, according to a former International Monetary Fund official.
While the U.S. enjoys the advantages of dollar dominance, deep financial markets, and Federal Reserve support for Treasuries, an institutional breakdown remains a threat, he wrote in an op-ed in"Even absent this dire scenario, meeting additional interest obligations as the debt ratio rises could require the federal government to cut discretionary spending, with negative implications for economic growth," Eichengreen warned.
"But if the cuts fall on public investment in semiconductors, quantum computing, clean energy, and education, as seems likely, then the negative growth effects could be substantial," he said. "And sharply slower growth would throw debt sustainability into doubt.". “To the extent that debt is a problem, that’s a reflection of political dysfunction, mainly the radicalization of the G.O.P.
Anthony Fauci has a new book plan and detailed one conversation with trump where the president said he “loved” him, but also expressed anger with the doctor.WASHINGTON — Three months into the coronavirus pandemic, Dr. Anthony Fauci was at home in northwest Washington when he answered his cellphone to President Donald Trump screaming at him in an expletive-laden rant. He had incurred the president’s wrath by remarking that the vaccines under development might not provide long-lasting immunity.
‘I spoke to every president since I’ve been alive, including Ronald Reagan, I’ll have you know,’ former tennis star saysRussian President Vladimir Putin promised Friday to “immediately” order a cease-fire in Ukraine and start negotiations if Kyiv began withdrawing troops from the four regions annexed by Moscow in 2022 and renounced plans to join NATO. Ukrainian President Volodymyr Zelenskyy rejected what he called an ultimatum by Putin to surrender more territory.Rep.