Federal deficits projected to rise, surpassing $1 trillion in 2020

GOP tax law will add $1.9 trillion to debt CBO

According to top United States budget watchdog the Congressional Budget Office, America's budget deficit would be $US804 billion for the current financial year, which ends on September 30. But House Republicans scheduled a vote later this week on adding a balanced budget amendment to the Constitution, which could force some fiscal restraint.

The recent Republican tax cuts and the bipartisan agreement to raise federal spending have done a number on already high budget deficits. During the campaign he advocated protecting numerous expensive programs - including Social Security and Medicare - and never squared the fiscal impact of the tax cuts he also favored. Publicly held US debt will total $28.671 trillion by the end of 2028, amounting to over 96 percent of USA gross domestic product (GDP) that year.

"The growth of real GDP exceeds the growth of real potential GDP over the next two years". Growth will be primarily driven by business investment, consumer spending and federal spending.

"We expect interest rates to accelerate faster", said CBO's Hall. "Those effects, as well as a larger federal budget deficit resulting from the new outliers, exert upward pressure on interest rates and prices".

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The sanctions freeze any assets that those targeted have in U.S. jurisdictions and bar Americans from doing business with them. The metal advanced 3% on Wednesday to $2,266.50 a tonne by 11am on the London Metal Exchange (LME).

"Turning to the budget projections, we estimate that the 2018 deficit will total $804 billion, $139 billion more than the $665 billion shortfall recorded in 2017". And they don't buy the Laffer Curve nonsense peddled in the USA and here by tax cut advocates, that company tax cuts will be so stimulatory that they'll produce a net tax revenue increase.

The 2001 and 2003 Bush tax cuts, for instance, were extended during the Obama administration and then largely made permanent when Congress faced the so-called fiscal cliff in 2012.

The official conservative party line during the Reagan era, when Republicans introduced the modern phenomenon of the large structural deficit, was that it was necessary to run the red ink in order to win the Cold War. The government would borrow about 19 cents of every dollar it spend this year.

But running something much closer to an overall balanced budget sooner rather than later is needed if the aim is to get the debt-to-GDP ratio heading back down towards historic norms over the coming decades.

Operation Guardian is underway with 225 Guardsmen deployed to the border
New Mexico's governor has said her state would take part in the operation, but no announcement has been made on deployment. The New Mexico Guard members could help with air support, surveillance and infrastructure repairs, Hull said.

But the Center on Budget and Policy Priorities, a liberal-leaning think tank, said the numbers weren't as bad as they might seem.

"The budget outlook is no reason for alarm", wrote Paul N. Van de Water, senior fellow at CBPP.

His formal budget proposals have been far harsher, but the Republican-led Congress has pushed against his proposed cutbacks due to their political unpopularity and the need to attract Democratic votes in order to pass any plan.

Korea seeks summit with Trump in Pyongyang
USA officials are apparently shooting for late May or possibly June. "If there were such talks, we think it's a positive move". Trump agreed to meet with Kim after a South Korean envoy extended Kim's invitation to the president last month.

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