The increase in the US budget deficit for the fiscal year of 2024, announced by the Congressional Budget Office (CBO) earlier this week, has raised decisive economic and political issues. While generally covered over in the official US election campaign, these are of decisive importance for the working class both in America and internationally.
The immediate economic question is: when will the rise in US government debt give rise to a crisis for the US dollar, a major meltdown in the market for debt, the Treasury bond market, or some other area of the financial system? Government debt is now heading towards $36 trillion and increasing at a pace which is regarded as “unsustainable” by Federal Reserve chair Jerome Powell, along with many others.
And flowing from this, how will…
