Those massive budget deficits are starting to cost us. Uncle Sam is on the verge of losing his AAA credit rating. Our budget deficit is now higher than Britain’s in relation to our economies. A lower credit rating will mean higher borrowing costs and that will make the deficit even worse.
Moreover, the minutes for the April Fed meeting were just released and the central bank seems to be very suspicious of “green shoots” appearing in the economy. They’re now projecting an even deeper recession and a sluggish recovery.