U.S. $1.52 Budget Proposal Emphasizes Education And Commerce

Basically, the gap will close and America will get back above the trend in the long-term real government gross investment. By real investment, it means that it accounts for expected inflation too.

All in all, America is not having a problem funding its deficit. As we have seen during the pandemic, the role of the U.S. dollar as a reserve currency increased. Effectively, it means that foreign nations increased their share of foreign reserves kept in dollars, basically buying the debt issued by the U.S. Treasury.

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