Update 6-14-25 (Israel-Iran, Deficit)

Jia Han
Jun 14
3 min read

This update was going to address the US Deficit issue. Then, the Middle East flared up. The relevant videos of this ME conflict are in [1-8] (I try to be complete). As you can see, this conflict might have several scenarios. Its outcome will impact economies and financial markets [9-11]. So you might want to consider them carefully before making financial decisions.

Now I address the US government debt problem. Last Sept./Oct. I realized that the US government was in a serious debt problem [12-13]. As Niall Ferguson pointed out, in history any empire whose debt interest payment exceeded the defense budget would not last long [14-15]. I was considering withdrawing my US funds. If Kamala Harris won the last election, the US government debt almost certainly will explode. Fortunately, Republicans won. So there is a chance that the US government spending might be controlled.

A few weeks ago, the House passed the so-called One Big Beautiful Bill. It increases, not reduces, the deficit. This was a disappointment. This probably contributed to the split between Elon Musk and Donald Trump. However, other things might have also contributed; [16] is probably more likely. The reason that this Bill did not reduce the deficit was probably political. In other words, if too much spending was cut then they would have no chance to pass Congress. If future budgets make serious efforts to cut spending AND the economy can grow reasonably fast [13], then the US might avoid a debt crisis. But this is not guaranteed. So be vigilant.

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Update 6-14-25 (Israel-Iran, Deficit)

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