Abby Joseph Cohen's U.S. Budget Deficit Warning

The video discusses the potential growth of the budget deficit, influenced by factors such as aging baby boomers and proposed economic policies. It highlights concerns about the deficit reaching levels similar to the 1980s. The discussion also covers interest rate predictions, with experts divided on whether rates will rise or fall, depending on economic conditions like trade wars or global recessions. Finally, the video examines GDP growth expectations, suggesting a more subdued underlying rate despite occasional strong quarters due to factors like inventory rebuilding.

What is one of the main reasons for the potential increase in the budget deficit?

• Increased investment in technology

• The aging of the baby boomer generation

• A rise in global oil prices

• A decrease in military spending

What is the predicted range for the US 10-year yield according to different experts?

• 3% to 5%

• 2% to 4%

• 1% to 2%

• 4% to 6%

What economic condition could lead to a decline in interest rates?

• A trade war and global recession

• Increased consumer spending

• A rise in employment rates

• Higher inflation

What is the expected trend for real GDP growth according to the discussion?

• Consistently above 3%

• Rapidly increasing

• Fluctuating with some strong quarters

• Steadily declining

What factor is currently pushing up GDP growth temporarily?

• Higher consumer confidence

• Rebuilding of inventories

• Increased government spending

• Technological advancements