Part 7/14:
He highlighted how, since 2014, the US and other central banks have tried to manage these issues while the underlying debt and deficit dynamics continue to worsen. The result is a pattern of short-term interventions to quell markets, only to see the cycle accelerate again. He pointed out that the pace of these crises is increasing, meaning the system’s resilience is waning.
The most glaring example is the ballooning deficits: recent figures show a $4.4 trillion tax revenue but roughly $4.8 trillion in projected spending, mainly on entitlements, health, and interest payments. Past attempts at fiscal consolidation, such as Obamacare or discussing entitlement cuts, are politically impossible or carry profound social risks.