America Facing a “Fiscal Heart Attack” if Radical Reductions Don’t Happen Soon

By now I believe most of my readers understand that no nation can continue borrowing money forever.  Our common sense tells us such.  History shows us that powerful nations start to fiscally deteriorate slowly…but then collapse suddenly.  We believe that America’s fiscal mess is one more sign that is converging to show believers how close we are to the Great Tribulation.

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President Donald Trump has no more than three years to slash the fiscal deficit by over half before bond markets plunge the United States into a debt death spiral. 

The only question is how much austerity will need to be imposed on everyday Americans already suffering from a cost-of-living crisis versus the vital contributions to productivity that technological advances could bring.

That’s the dire warning issued by billionaire investor Ray Dalio at the World Governments Summit in Dubai on Thursday. He believes the $36 trillion and counting in national debt is effectively plaque building up on the arterial walls of the U.S. financial system. 

Unless the Trump administration can persuade bond investors to accept a lower return on their investment that is commensurate with fiscal sustainability, an “economic heart attack” is imminent if continued government profligacy is unaddressed.

“The United States will run a deficit of about 7.5% of GDP if the Trump tax cuts continue, which I expect,” he warned, calling on the White House and Congress to commit to cutting the deficit to 3% of GDP in the next three years.

Fears the bond market can’t soak up the supply

Following Wednesday’s red-hot inflation print, Wall Street no longer expects relief in the form of further interest rate cuts. Yields on benchmark 10-year Treasuries remained above 4.6% amid news that consumer prices increased more than expected in January. 

 https://fortune.com/2025/02/13/trump-national-debt-fiscal-deficit-economic-heart-attack-ray-dalio-bridgewater-hedge-fund/