The US federal surplus or deficit as a percent of GDP is seen from 1929 to the present. Recession years are shaded in grey
Daily Mail: Trillions in coronavirus spending could explode federal deficits to levels not seen since World War II, economists warn
* Analysts project federal deficits could approach 20% of GDP in 2020
* Deficit spending hasn't gotten near that level since all-out push in WWII
* Trump on Friday signed into law a $2.2 trillion aid package, the largest ever
* One report estimates the deficit will total at least $3.7 trillion in 2020
* National debt could rise to $29 trillion from an estimated $23.6 trillion right now
Federal spending in response to the coronavirus crisis is on track to explode deficits to levels not seen since World War II, experts and economists say.
A new study by Morgan Stanley estimates the deficit will total at least $3.7 trillion this calendar year, and $3 trillion next year, financed by the sale of Treasurys, largely to the Federal Reserve.
Depending on how much the U.S. economy declines, that could push the federal deficit to 15 to 20 percent of gross domestic product (GDP), a level not approached since the second World War.
By any accounting, the federal deficit will blow past the post-war record of 9.8 percent of GDP, set in fiscal 2009.
Read more ....
WNU Editor: The U.S. is not the only country facing massive debt levels. I live in Canada and last year's federal government debt was CAD$768 billion. Current projected Canadian government coronavirus spending may reach $200 billion this year. And as for other countries, their money faucets are open even wider. Sighhh .... it is going to take generations to pay all of this off.
Update: Here is a worst case economic scenario .... The worst economic collapse ever? (Tuomas Malinen, GNS Economics).
6 comments:
It's not that the CDC, Dr. Fauci, Dr. Birx, the Surgeon General, and others have been tone deaf to rhe economic, social, and other medical problems their policies have caused. They seem to be totally brain dead to the damage they've caused. I'd liken their behavior to that of mafiosa goons the way they've ripped through our economy and the lives of our people with their draconian shutdown policies.
Early on leaders of the restaurant, cruise ship, hospitality, and travel industries should have been brought on as equal partners with the CDC, Dr. Fauci, Dr. Birx, and the surgeon general. Had this happened I'm pretty sure we could have come up with workable solutions that could have mitigated the spread of this virus without sending a wrecking ball through our economy.
I credit the combination of the Trump imitated tax cuts and regulatory reforms with being the primary catalyst that allowed us to achieve the best economy we've ever had. Then the jailers of CDC, Dr. Fauci, Dr. Birx, and the Surgeon General came a,ong and took it away. If they are allowed to continue with their draconian policies much longer, they will not only be the jailers of many of us but the executioners of many people. I do NOT plan to be one of their victims.
The extreme stresses of social isolation brought about by stay at home orders, social distancing, and job losses that are the direct result of these policies weaken immunity, exacerbate chronic conditions, are catalyst leading to other chronic conditions, and I can go on. Suffice it to say the death toll and the costs of treating chronic health conditions that are the result of these policies will likely exceed what this virus ever could have done even if they are largely discontinued by 4/30. To go on beyond this will only make matters worse.
We need to get our economy back. We have no choice. POTUS appears to be telegraphing this that large parts of our country will be reopened by 5/1 and significant steps will be made towards ending the CDC's experiment.
As pandemics and new viruses aren't "novel," in the future, the so called medical "experts" will need to engage business interests as equal partners. In doing this, I think we should be able to craft solutions that will work to mitigate the spread of these things without undertaking the completely unacceptable solution of shutting down whole segments of our economy.
It is a big scam.
Covid is no worse than the flu. We do not shut down the economy for the flu.
The 2nd law of thermodynamics reigns supreme. Gravity lapse or what looks like it occurs, but for a short while. Looks like forest fire to me. It's just life.
All the talking heads, pols and "physicians" advocating a 3 month to 18 month paralysis of our economy seem to be of identical political persuasion.
What a coinkydink.
This is the way the world ends
This is the way the world ends
This is the way the world ends
Not with a bang,
……but a whimper.
We get our world war. Someone outside the US will smell weakness or opportunity. Your typical Democrats is not bent on world domination. They are bent on local control, local control of a big country. They are willing to rock the boat or whatever it takes. All you really need to do to understand a Democrat is to read Jane Goodall or Laurie Santos and that is fucking sad.
If Trump didn't recommend shutting stuff down, the Democrats would hang him. If he does go that route, whatever he does will not be enough or quick enough and they still hang him.
Same shit happens in America.
I blame Democrats.
"The Far-Left politicians sold out and betrayed the Italian people with open border policies and social justice programs. One of the reasons the health care system collapsed so quickly is because the Renzi government (and now continued under the Conte government) redirected funds meant to sustain the medical system, to pay for the tens of thousands of immigrants brought into Italy against the will of the Italian people."
In Sweden liberals or should I be honest and write LIBERAL MOTHER FUCKERS, move senior citizens, the elderly, out of their homes to make more room for more Muslim migrants.
Wherever they exist, liberals are a pox on the people.
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