America's Deficit Is No Longer Just a U.S. Story
One macro trend I think investors are underestimating is the size of the U.S. budget deficit. At roughly 6% of GDP, the United States now runs the largest fiscal deficit in the G7, more than double the group's average.
What's interesting is that this isn't happening during a major recession or financial crisis. Historically, deficits of this magnitude were often associated with emergencies, wars, or severe economic downturns. Today, they're becoming part of the normal backdrop.
For markets, the question isn't whether deficits matter. The question is when they start to matter.
A government can finance large deficits for a long time if investors remain willing buyers of its debt. But persistent borrowing eventually creates pressure somewhere in the system higher interest costs, increased debt servicing, currency concerns, or reduced fiscal flexibility in future downturns.
I'm not in the camp that believes a crisis is around the corner. The U.S. economy remains powerful, and global demand for dollar-based assets is still strong. However, I do think we're entering a period where fiscal discipline becomes a much bigger conversation than it has been over the last decade.
The chart isn't just showing a number. It's showing a growing imbalance that markets may eventually be forced to price in more seriously.
#USBudget #XRP15WeekLow #CryptoAttacksDrop90PctInMay #ARKInvestSells352MCircleShares #ECBDigitalEuroStablecoinAnswer $PORTAL $H $VIC
