The US Tax Bill increases concerns about its debts
The American public DEBT has increased significantly to the President of the “Heavy and Beautiful” Tax Act Donald Trump, which raises investors’ concerns and questions about the time of the world funding Washington’s ER.
The United States’s long -term loans have increased earlier this week, and after a committee in Congress provided a budget bill, it is expected to add trillion dollars to the federal deficit by expanding tax dollars in the next decade. On Friday, the Financial Times said that the draft law had moved forward from its excellent credit rating “AAA”.
The draft law and the stability of the American public finance have been reduced by the credit rating of concern, during which many investors and analysts have said that religion and deficit have reached a higher level.
“This is like a boat on the rocky boat, but his Morsion argues in any direction they should take,” said the Division Fund founder Billionaire, Bridge Water Associated, Ray Dalio The Financial Times. He said: “I don’t care if they are left or right until I am interested in returning the ship to its right track.”
The proposed law called Trump, repeatedly and repeatedly expands the name “The Great and Beautiful Bill”, comprehensive tax deductions approved in 2017 in 2017.
Large reductions can also be performed in low -income people and medical insurance program program. Republicans are hardening to spend more.
The White House Press Secretary Caroline Levite said on Monday that the draft law would “worsen the deficit”, referring to the advertising of other officials in the Trump administration, suggesting that the tax reduction will accelerate economic growth.
But the responsible Federal Budget Committee, the Pilgrimage Committee, predicts that the law will increase the government loan at least $ 3 trillion until the end of 2034. The committee said it would increase the loan ratio to GDP today to 100 %. Under the current law, this increase exceeds 117 percent of that period.
Meanwhile, the annual deficit will increase to 6.4 % in GDP in 2024.
Most public loan requires funding from investors, accelerating its bond sales. However, there are evidence that loan investors are trying to get higher returns to buy the loan, which increases the costs of borrowing.
On Monday, Treasury Bonds rejoined to 5.04 per cent, which has been reduced to 5.04 per cent, which has been reduced by the Budget Committee in the House of Representatives since 2023, after the “Moody’s” credit rating was reduced on Friday.
“We are in a turn in the Treasury Bond market, and the Treasury bonds need to be in this current level and we will soon need some good news about the deficit,” said Tim Magnusan, Chief Investment Officer of Garda Capital. “Bond market will be control if necessary,” he said.
Yardi was re -used in the 1980s to describe the negative market reaction for financial positives for financial positive: “Bond guards gathered their strength, and they were ready to move.”
Dalio said the United States needs to reduce its deficit by 3 percent to 3 percent through a combination of cost, increased income and real cutting costs.
The Director of Investment Portfolio in the “Double Line” group, Bill Campbell, suggested that its investments in Treasury bonds for 20 and 30 years were “less than necessary.” “It does not seem to have made a serious effort to curb the debt,” he said.
Like the original Global Reserve and Dollar, thanks to the widespread global demand for Treasury bonds, the United States has always been able to record a big deficit compared to other countries.
From the perspective of credit rating agencies it has given the United States a great flexibility in its public economy. The last challenge comes at the time of raising investors’ concerns about Trump’s customs duties and exposure to dollar assets.
“The main problem is that the market has re -assessed its willingness to finance the double deficit in the United States in the last two months,” said Duish Bank George Saravilus. “The decline of the desire to buy US assets and freeze the economic process of the United States, which limits a lot of deficit; they are related to the market.”
