Zero Hedge: Fiscal Disaster: US April Deficit Hits Record $738BN As Government Spends $1 Trillion In One Month
While it will hardly come as a surprise to anyone that the US fiscal situation is now an absolute catastrophe - following previously projections that the US is expected to issue over $5 trillion in debt this year alone and the Fed is expected to monetize all of it, if not more - moments ago we got the actual details of just how bad it will get when the Treasury published its April Monthly Treasury Statement.
The numbers were terrifying: with the US economy shut down in April, the US government collected just $242BN in receipts, down a record 54.8% from a year ago "as certain taxes from individuals and corporations were deferred until July," the Treasury said, a deferral which may now be extended all the way to December. On a rolling 12-month basis, receipts were just $3.265 trillion, the lowest since March 2017, and down 3% Y/Y, assuring the US economy is in recession (just in case the 34 million recently unemployed Americans didn't make that clear)
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WNU Editor: The Democrats have presented their laundry list of even more spending .... House Democrats unveil new $3 trillion coronavirus relief bill (CNBC). I feel like I am reliving history. When the Soviet Union collapsed the Russian government tried the same policy of spending money that they do not have to keep the economy running and people paid. It ended in an inflation spiral and fiscal collapse followed by years of hardship and austerity.
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I think part of the problem Russia had was the impact of US advisors and their idea of what the new Russian government should do. I remember the script was a cold turkey scenario. Like stopping smoking immediately.
I recall the tremendous hardships pensioners experienced for years.
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