Goldman Sachs warns that US Treasury bonds are approaching the peak level of World War II, and delaying the resolution of the deficit will lead to severe fiscal austerity

BlockBeats reported that on June 20, Goldman Sachs pointed out that Trump's spending plan could not prevent the US treasury bond from climbing to an "unsustainable" high, and the US debt level is only second to that during the Second World War. Next year, the United States needs to pay $1 trillion in interest on $36 trillion of treasury bond, more than the sum of medical insurance and defense spending. Goldman Sachs economists warn that if US lawmakers delay addressing the deficit issue, they may need to resort to historically rare fiscal tightening to avoid crises in the future. Large scale fiscal consolidation may lead to a decline in GDP, but it may not be able to reduce the debt to GDP ratio. What is even more dangerous is the possibility of choosing to print a large amount of money to repay debts - the lessons learned from the Weimar Republic in Germany in the 1920s indicate that this operation will trigger hyperinflation and social unrest. '' The non partisan Congressional Budget Office estimates that the Republican spending bill will increase the deficit by $2.8 trillion over the next decade. The White House and some Republican lawmakers argue that the forecast should not include the cost of extending Trump's 2017 tax cuts, which would expire this year if not extended.