Financial markets don’t like it when governments announce plans to spend more money. That’s why there’s concern over Donald Trump’s Big Beautiful Bill, which will add, by some accounts, $4 trillion to the US budget deficit over the next decade. Steve Keen says it’s not a problem. Banks buy up the bonds and the central bank ensures they have the liquidity to do so.&nbsp;&nbsp;In which case, why are people ditching US bonds in favour of other sovereign debt elsewhere? And isn’t there a risk that higher treasury yields will reduce the differential with corporate bonds, which could discourage investment in the real economy?&nbsp;As Phil and Steve nut it out, they both agree, Trump’s bill is a bad one when it comes to income distribution. It assumes trickle down economics. When has that ever worked?<hr><p style='color:grey; font-size:0.75em;'> Hosted on Acast. See <a style='color:grey;' target='_blank' rel='noopener noreferrer' href='https://acast.com/privacy'>acast.com/privacy</a> for more information.</p>

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