The Next Crisis Bomb Is Worrying.

The weakest economic recovery in modern American history has reached 69 months. If it can last until 2017, the recovery will be the third longest sustained growth cycle since the great depression. In 2018, it will also rise to second.

State governments and local debt increased by about 3 trillion, which can be expected that the interest burden on debt is still increasing.

At some point in 2019, the government will run out of equity, defence and interest.

It also means that any expenditure will be realized by borrowing money.

CBO predicts that

A further increase of US $1 trillion by 2023 is equivalent to that the entitlement and net interest rate expenditure will occupy all the tax revenue. Then the defense will begin to be "borrowed".

Further, only in a calm 1960s can the US economy enjoy such a long recovery cycle, but this record is likely to be broken by the current cycle in 2019.

But in the 60s of last century,

The increase is far higher than 3%, far from less than 2% now.

At the same time, the global economy is also slowing down.

There is little left in the FED monetary policy arsenal, and the US economy may be struggling beyond the crisis.

To make matters worse, there are a number of unfavorable factors that are gradually becoming the sum total of serious crises.

Next year, the US national debt will reach 20 trillion dollars, and the deficit will be close to US $500 billion. The Congressional Budget Office predicts that this figure will increase.

By 2019, the deficit will come to $738 billion, and there are only 3 ways to cut costs: increase taxes, reduce spending, or give the federal reserve the power to monetize debt.

Moreover, the assumption of CBO is that the US economy will not recessie in the next 10 years - the economic growth rate will be higher than in the past years.

What kind of impact will the recession have on the budget? What will happen if there is a recession in 2018?

Entitlements and interest expenses will be much higher than real government revenue.

The debt bubble will blow up to $1 trillion and 300 billion. If the recovery meets the latest recovery, then the deficit will not come to less than 1 trillion dollars in 10 years unless the United States cuts spending or raises taxes.