Jim Millstein, the co-chairman of Guggenheim Securities, calls on the US government to get her financial home in order, warning for a ‘tax disaster’.
In a new interview with Bloomberg, Millstein says that government spending by far exceeds the income, creating a non -durable financial situation.
“This year we have a 7% of GDP deficiency, which means that the debt increases by 7% per year, while the economy grows only by 2% to 3% per year. So in fact we are becoming more debts over time, because the growth of the economy is no more than the trade in trade on the trade in trade on the market on the trade in the trade in the trade in the trade in the trade in the trade in the trade in the market in the market in the market in the market in the market in the management.” “”
In a separate Bloomberg interview, Millstein says that the tax situation of the US concerns investors, and therefore the long-term returns have increased lately.
Millstein says that the ten -year -old treasury is increasing “because of the imbalance in the finances of the federal government and the enormous amount of shortages they have to finance.” He also says that there is ‘a huge range of treasuries on the market’.
According to Millstein, the rising ten -year returns are currently the biggest financial challenge of the US, because they increase the interest costs of existing and future debts.
Millstein says that the US may be confronted with a similar situation that took place in the nineties, when the bond returns rose sufficiently to convince politicians to take action to reduce the shortage.
https://www.youtube.com/watch?v=LKNCW4DOGNM
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