In case you missed the news earlier today, the federal government’s deficit jumped to $779 billion in the fiscal year just ended. That’s a 17 percent increase over the previous fiscal period.
An escalating deficit late in an expansionary economic cycle is unprecedented. But under the self-proclaimed King of Debt, it’s hardly surprising. All he needed was a Republican-controlled Congress that doesn’t give a damn about deficits. And that’s exactly what he got.
The obvious question is, how will the federal government be able to respond to the next recession? No one knows. We’re in unchartered waters. Close to shore. Where rocks can bash your ship into smithereens if you’re not careful. And extremely lucky.
In the meantime, keep an eye on that Medicare and Social Security. They’ll be coming for that next.