Quote of the Day
The biggest elephant in the room is the US Fiscal Doom Loop. To refresh: US Government spending is out of control, and there appears to be very little political will to stop it. As the chart below shows, Government spending is up 14% yoy and tax receipts are down 7% yoy. Fiscal year ended September 2023 is projected to have a deficit of over $2 Billion (or roughly 8% of GDP). In the past, deficits of this magnitude only materialized during significant downturns like the bursting of the Dotcom Bubble, the 2008 GFC and the COVID crisis. It is unprecedented to have deficits of this magnitude with the economy and employment being relatively strong.
This “Unprecedented” Fiscal Doom Loop Is Getting Worse
A volcano in Iceland is expected to erupt in hours or days and destroy a town of 4,000 people, Japan has a new island, a super volcano is flexing, U.S. military bases are being attacked almost daily, and the U.S. debt is over 33 trillion and rapidly increasing.
We live in interesting times. Some might even claim it is the end of times. Prepare appropriately.
I want my underground bunker in Idaho.