Jim’s Mailbox

Posted at 11:19 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

As I said on Saturday, they will just print whatever is needed reducing the value of the dollar in the process.

Dave

US Budget Deficit Soars To $3tn Record
September 11, 2020

The US budget deficit has hit a record high of more than $3tn (£2.3tn), driven by the government’s massive spending on coronavirus relief.

The federal government spent more than $6tn in the first 11 months of its financial year, including $2tn on coronavirus programmes, the Treasury Department said.

The figure outpaces the $3tn it took in from taxes.

The shortfall is more than double the previous full-year record, set in 2009.

At the time, Washington was grappling with the aftermath of the 2008 housing financial crisis.

Even before the pandemic, the US was on track to run a deficit of more than $1tn this year – large by historic standards.

But the spending approved to try to cushion the financial impact of the virus has exploded those projections.

The Congressional Budget Office this month predicted that the US was likely to run a full-year deficit of $3.3tn, more than triple the shortfall recorded last year. The federal government’s financial year ends in September.

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