Business Insider/Ben Winck/10-16-2020
“The US federal budget deficit spiked to a record $3.1 trillion in the fiscal year that ended in September, according to data released Friday by the Treasury Department. The monthly budget statement caps a year rife with economic catastrophe and unprecedented relief measures. The coronavirus pandemic first slammed businesses, corporations, and households in February and continues to wreak havoc on US economic growth as case counts swing higher.”
USAGOLD note: Tax revenues cover half U.S. government spending. The other half is covered by debt. The chart below reflects the dramatic gap between expenditures and revenue. In times past, the Fed would at least make an attempt to discourage excessive government debt, but now it has taken the lead in encouraging even more spending.
