The budget watchdog says a $1.8 trillion deficit was exposed during the “useless and wasteful government shutdown.”

According to CRFB chair Maya McGuinius, the government’s estimated borrowing for the financial year is not exactly growing, but that’s why it’s worrying. “While the deficit has not risen from last year, it has not fallen either, and we are still borrowing too much. Our national debt is the size of the entire American economy, and will exceed its all-time record high as a share of the economy – set just after World War II – in short order.” McGinnis noted that the United States is on track to borrow nearly $2 trillion annually over the next decade. “How can anyone think this is sustainable?”

The watchdog urged that reopening the government without attaching new borrowing conditions should be a priority. Additionally, the CRFB called for an extension of discretionary spending limits that have helped manage spending over the past two years, and recommended imposing a “Super PAYGO” rule — requiring $2 offsets for every dollar of new spending or tax cuts — to encourage fiscal responsibility.

McGuinius also stressed the urgent need to specifically address insolvencies of long-term entitlement schemes Medicare and Social Security trust fundsWhich faces financial depletion without repair within approximately seven years. To instill fiscal discipline, the Federal Reserve has proposed creating a fiscal committee tasked with reducing the deficit to 3% of GDP, an ambitious but necessary goal given the current debt trajectory.

“The tragedy of the failure of governance that we are witnessing is that political leaders were unable to overcome their differences to do the difficult task required to prepare the budget,” McGuinius stressed. She warned that without change, the United States risks losing its status as a global superpower.

The $1.8 trillion deficit last fiscal year reflects the continuing challenges of balancing spending with revenues amid rising costs for health care, social programs, and national defense, along with tax policies (specifically, a reluctance to increase them) that limit revenue growth. CRFB’s analysis paints a cautionary picture that underscores the urgent need for bipartisan cooperation in Congress to enact sustainable fiscal policies.

Dalio’s diagnosis

The CRFB is not alone in its concern about the deficit, as many of the loudest voices in finance have long urged the government to get its fiscal house in order. Most notable among these is hedge fund billionaire Ray Dalio, who has questioned President Trump’s claims that through…Growth record“The nation can essentially grow from its $37 trillion debt burden.

The founder of Bridgewater Associates has studied nearly 50 major debt cycles and warns that prosperity fueled by high debt is always temporary. In his 2018 book Principles for dealing with major debt crisesDalio warned that leaders were confusing prosperity with immunity, and that income should continually exceed the costs of servicing debt. Current Central Bank of Oman forecasts In fact, debt owed by the general public is expected to swell to 118% by 2035, and net interest payments as a share of economic output will rise.

Recently, Dalio pointed to gold’s string of record highs throughout 2025, and said it makes sense when you look at the debt situation. in Greenwich Economic Forum In October, Dalio urged investors to allocate about 15% of their portfolios to gold, He said the metal’s rise reflects a shift away from debt assets and fiat currencies, which reminds him of the 1970s. He linked it to rising global debt levels – especially the US burden of $37.8 trillion – and noted that many central banks are working to increase their gold reserves, highlighting “the ongoing change in the monetary system.”

For this story, luck Use generative AI to help with the rough draft. An editor verified the accuracy of the information before publication.