The War on Cash Worse Than it Seems…U.S. Borrowed $488 Billion & Will Push Budget Gap Over $1 TRILLION BY 2020
The War on Cash Is Even Worse than It Seems –Dowd/Mises
“I believe that those who advocate or who are even willing to entertain the abolition of cash are onto a seriously bad idea….The core issue in the War on Cash is whether people should be compelled not to use cash, and this issue is of profound importance….We should also consider the impact that banning cash would have on vulnerable groups. To work as intended, everybody would have to have the digital technology and be able to work it. Well, many people don’t have that technology, and there are many more who would struggle to work with it and/or would be made very vulnerable if they were forced to depend on it….The World Bank estimates that there are two billion adults without bank accounts, and even those who do have them still often rely upon the informal flexibility of cash for everyday transactions….I shudder to think of the unintended consequences of such a voyage into the monetary unknown…”
The U.S. Just Borrowed $488 Billion, a Record High for the First Quarter –Bloomberg
“U.S. Treasury Secretary Steven Mnuchin said he’s unconcerned about the bond market’s ability to absorb rising government debt after his department said it borrowed a record amount for the first quarter….Earlier on Monday the Treasury said net borrowing totaled $488 billion from January through March, a record for that period and about $47 billion more than it had previously estimated, according to a statement released in Washington….The U.S.’s need to issue more Treasuries is expected to grow as the fiscal picture deteriorates. The budget deficit widened to $600 billion halfway through the fiscal year, as spending increased at three times the pace of revenue growth in the October-to-March period, according to Treasury figures released earlier this month. Tax and spending measures approved by Congress and President Donald Trump are expected to push the budget gap to $804 billion in the current fiscal year, from $665 billion in fiscal 2017, and then surpass $1 trillion by 2020, according to the Congressional Budget Office.”
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