U.S. Tax Cut Plan: The Side You Do Not Want to See
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Now, the theme this time isOne aspect of the US tax reform bill.
The tax reform bill under President Trump was welcomed by the stock market, but there are aspects we should consider as well.
That is, taxes will widen the US fiscal deficit.
The deficit is expected to increase by1.5 trillion dollarsover the next ten years.
At 105 yen per dollar, that amounts to 157 trillion yen.
This deficit will, of course, be funded by issuing more government bonds.
Also, since bonds are issued, there is no need to rush.
If you think such fiscal deficits and government bonds are something to ignore, naturally interest rates will rise.
Once interest rates start rising, it becomes hard to stop them.
The impact on the stock market at that time could be immeasurable.
Note) The above reflects my personal view and is intended solely to improve financial literacy. It is not intended as an investment solicitation. Also, while the blog's content is based on data from reliable sources, the administrator does not guarantee its accuracy. Please make actual investment decisions at your own risk.
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