October deficit: $404 billion. Rolling 12-month total: $2.1 trillion — the worst in 20 months.
Washington's playbook hasn't changed: spend what you don't have, then borrow to cover the gap. Rinse and repeat.
This matters for markets because deficits this size don't disappear quietly. They show up in Treasury auctions, interest rates, and eventually inflation expectations. The bill always comes due — just not on the timeline politicians care about.
If you're holding long-duration bonds or planning your portfolio around "stable" rates, pay attention. Fiscal discipline is a fantasy right now, and the bond market will remind everyone of that when it feels like it.
Washington's playbook hasn't changed: spend what you don't have, then borrow to cover the gap. Rinse and repeat.
This matters for markets because deficits this size don't disappear quietly. They show up in Treasury auctions, interest rates, and eventually inflation expectations. The bill always comes due — just not on the timeline politicians care about.
If you're holding long-duration bonds or planning your portfolio around "stable" rates, pay attention. Fiscal discipline is a fantasy right now, and the bond market will remind everyone of that when it feels like it.
