US Treasury Department Dropped a Financial Bombshell

The US deficit for 2023 was $1.7 Trillion. This is 23% higher than the previous year. The federal government spent $6.1 Trillion and received $4.4 Trillion. Yet, the actual shortfall is $2 Trillion. This is because the Supreme Court blocked Biden's student loan bailout. The Biden administration moved $300 Billion of unfunded spending to next year's budget. They plan to selectively bailout student loans, and end run around the Supreme Court. Therefore, the total deficit for fiscal year 2023 is $2 Trillion. Also, $879 Billion was interest payments on the debt. This is more than the entire Department of Defense budget. To make matter worse, the government does not pay down debt. It issues new bonds at the current interest rates. Because interest rates are much higher, interest payments will increase rapidly. Interest on the debt will be over $1Trillion in the next year or two. This is happening much faster than most people realize. We likely will face one of two scenarios sooner than most people expect: 1. Debt Death Spiral: Unless government spending is reduced significantly very soon, the country will go into a debt death spiral. The interest will continue to grow rapidly, until the interest payments are more than total revenues. 2. Austerity Measures: Bond buyers (mostly large institutional investors) stop buying bonds. When the government can no longer sell their bonds, it will be forced to live within its means. The government will only be able to spend revenues received. This will create economic chaos. All government benefits would be dramatically cut and/or taxes significantly increased. Interest rates will likely remain high for an extended time. The bond market has already increased at the fastest rate since 1792. In this environment interest rate sensitive assets will thrive. Asset values on most stocks and real estate will suffer. Your Personal Bank dividends are interest rate sensitive and will thrive in a higher interest rate environment. They are also grow income tax-free and you can access tax-free. This shields you from likely higher future tax rates. Your Personal Bank dividends are likely to increase for the next several years. Also, you can grow your money safely, with guarantees, tax-free, and highly liquid. Contact Ferenc at 866-268-4422 or yourpersonalbank.com for more info.