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Replying to Avatar Lyn Alden

Debt issuance is not smooth, but rather is lumpy. One cannot extrapolate two months of deficits into the annual deficit.

The Treasury refilled their cash balance by $400 billion in two months, which meant extra debt issuance that wont be repeated any time soon.

Additionally, tax season brings in a burst of taxes, and so the back half of the calendar year tends to have larger deficits than the front half.

Actual deficits are still closer to the $2 trillion range. And indeed, nothing stops this train.

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TBH 2mo ago

Lumpy indeed. And the lumps keep getting bigger…

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