Giuliano Giacaglia
@giu
The 2023 deficit is increasing significantly. For the first 3 months of 2023, the deficit was a whopping $679 Billion! An increase of 134% over Q1 2022 which was $291 Billion Receipts: $1,023 B vs $1,070 B (-4.4%) Outlays: $1,702 B vs $1,361 B (+25.1%) https://i.imgur.com/uZOCOsd.jpg
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Aman Dhesi
@aman
Insane. How do we bring down inflation if we keep running a massive deficit?! Where is the spending even going?
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Giuliano Giacaglia
@giu
Inflation won’t go down… Seems like most of it is social security, Medicare and the military If the US wants to remain at the top, it needs to control spending https://i.imgur.com/tAehDYG.jpg
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Tomasz Tunguz
@tomasz
imo, the only way out is to inflate. if we raise taxes, the debt/gdp ratio goes way too high because higher taxes reduce the gdp. the deficit is so high because of the high interest rates. money is flooding the treasury for QE & because of the recent bank runs (consumers moving money from banks into money market).
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Tomasz Tunguz
@tomasz
only way out is to cut rates, inflate, make the debt burden less & ride out inflation as best we can. either that or bet on Gen AI doubling GDP to 5% growth for the next 10 years
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