In 2018, the US GDP was 20 trillion dollars. In 2015, the US national budget was 3.8 trillion dollars. Those are extremely large numbers. Each year, the Federal government borrows more and more money to the point where the numbers are essentially ridiculous.
But to add more insanity to the madness of what has become the federal budget, the US government will this quarter according to MSN borrow three trillion dollars, or almost all of the 2015 budget for the year just to pay for quarterly expenses.
Massive stimulus to support the U.S. economy through the coronavirus crisis will cause the Treasury to borrow a record $3 trillion this quarter.
The department on Monday announced the total, which is actually $2.999 trillion.
“The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April – June until July, and an increase in the assumed end-ofJune Treasury cash balance,” the department said in a statement.
On top of that borrowing, Treasury also said it anticipates another $677 billion in the third quarter. First-quarter borrowing totaled $477 billion.
The red ink comes thanks to multiple stimulus efforts Congress has passed to resuscitate an economy brought to a standstill amid social distancing efforts to halt the virus spread. Allocations thus far have totaled more than $2 trillion, and at last one more package is expected to help the more than 30 million Americans who have hit the unemployment line as well as thousands of other businesses that have seen their revenue streams evaporate. (source)
This cannot go on forever. This is massive money borrowing on a level never seen before. We are reaching Zimbabwean levels of money printing, and fast will surpass it.
The warnings that I have said before remain. Prepare as much as you can, pay off debts, and limit expenses while transferring what money you have into hard assets as much as possible. The currency will likely be hyperinflated to service debts, and when this happens, all will be affected. The steps are in place for this to happen and while not right a way, have a strong chance of taking place in the next decade. Don’t be caught wholly unprepared.