WATCH AS STEEVE MOORE GIVES WARNING OVER FINANCIAL CRISIS
Although the US economy is relatively strong, the federal deficit has not shrunk as expected meaning Americans could be hit with larger interest payments and lower tax receipts.
“Although the crucial work continues to reach a bipartisan, bicameral agreement on fiscal year 2024 appropriations bills, it is clear that a short-term continuing resolution (CR) will be needed next month,” a spokesperson for the Office of Management and Budget told Axios.
Despite the current $2trillion spending imbalance, the spending imbalance was much larger in 2021, hitting $2.8trillion (£2.22trillion) following unprecedented Covid spending, according to figures from the Congressional Budget Office.
Biden economy chaos as Congress set to shut down amid $2trillion federal deficitReuters
“We should learn from 2008 when we had the last big bubble pop, that was devastating,” warned Moore.
“We had massive business failures. You had the major banks that needed major bailouts from the government. We had the unemployment rate double and triple.
“Just like a cancer cell, you’d better treat it before it metastasizes. And we're not doing that with our debt.
“We're just whistling Dixie and pretending it doesn't exist.”