The House passed the tentative budget deal that was agreed between President Joe Biden and House Speaker Kevin McCarthy (R-Calif) by a 314-117 margin late Wednesday.
Commenting on the development, economist Peter Schiff suggested it was now time to focus on real issues.
What Happened: “Now that the fake #DebtCeiling crisis is behind us, we can focus on the real crisis that lies ahead,” Schiff, a proponent of gold as an investment option, tweeted late Wednesday.
The budget deal envisages suspension of the debt ceiling for two years. The gold bull said the "reckless" government spending and borrowing will continue now.
“This will go on until a "sovereign debt and U.S. dollar crisis brings it to a catastrophic end," he added.
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Deficit To Bloat: The $1.5 trillion the budget deal expects to save over the next decade amounted to less than 5% of what the deficit will be over the same period, Schiff said in a separate tweet. Even this benefit will accrue only if the unrealistic rosy economic assumptions come true, he said.
“More realistic assumptions result in a surge in deficit instead,” the economist said.
The bill proposals, which run to 99 pages, call for restricting spending for the next two years — the period when debt limit suspension will be in effect. The provisions of the bill also call for some policy changes such as outlining new work requirements for older American receiving food aid.
It would also revoke $30 billion in unspent COVID-19 relief money and also take $20 billion from the Internal Revenue Service over the next two years and use it for non-defense spending.
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