Thanks to all of the federal spending for the coronavirus pandemic, the treasure will borrow 3 trillion dollars to pay for just one quarter of debt:
FOX NEWS – Senior Treasury Department officials said Monday the U.S. is borrowing more in the second quarter than it did in all of last year due to coronavirus relief spending and reduced tax revenue.
A Treasury official said Monday the U.S. will borrow $2.999 trillion in privately held net marketable debt in the second quarter, assuming an end-of-June cash balance of $800 billion.
This would be far above what the Treasury typically has borrowed in a year. In comparison, the Treasury’s net borrowing in the last fiscal year was $1.28 trillion.
The last-highest recorded quarter was July-September 2008, when Treasury borrowed $530 billion. The previous record for second-quarter borrowing was $344 billion in 2010.
The red ink is coming after Congress approved trillions of dollars in stimulus payments to support shuttered businesses and their workers in the form of direct economic payments, the Paycheck Protection Program and others. One more package is expected to help the tens of millions of Americans who recently hit the unemployment line.
The entire debt last year was 1.3 trillion borrowed. Because of the coronavirus 3 trillion is being borrowed in just one quarter.
But that’s not all…
In addition, the government has needed to borrow to cover the shortfall in revenue set to occur because the Trump administration has delayed the deadline for tax payments this year from April to June.
Treasury officials said they expect to borrow $677 billion in the July-September quarter, for a cash balance of $800 billion at the end of September.
The department borrowed $477 billion through credit markets in the January-March quarter.
Ad that 3 trillion to a combined 1.1 trillion for January and July quarters and we’ve got our self a 4 trillion dollar year, not counting what they’ll borrow for the 4th quarter of 2020.
Lastly, the national debt is at around 25 trillion now:
Since March 1, the national debt has grown by $1.5 trillion to a total of $24.9 trillion, a 6.4 percent increase.
I remember when Bush finished office in 2008, the national debt was only 10 trillion. Then by the time Obama was done, the debt was around 20 trillion. Now in just 4 years of Trump, we’re pushing it to 25 trillion. And Trump still wants another trillion or two for infrastructure, not counting whatever Congress decides to spend in the next stimulus. ¯\_(ツ)_/¯