The baseline deficit entering 2020 was $1.0 trillion. The Congressional Budget Office (CBO) projects that the first four Coronavirus response bills will add $2.2 trillion to this year’s deficit. The remaining portion of the deficit consists of the economic and technical effects of the economic shutdown—the non-legislative costs such as fewer workers paying taxes and more people signing up for unemployment and Medicaid benefits. This analysis assumes approximately $1 trillion in these costs (bringing the total deficit to approximately $4.2 trillion), while the CBO presumably assumes a smaller economic and technical figure to reach its $3.7 trillion total.[
– The U.S. government suffered budget deficits every year from 1970 through 1997. – Democrat Bill Clinton was president in 1998, when the government finally recorded a surplus.
On January 27th, 1998, during his State of the Union, President Bill Clinton boasted of major progress in reducing the annual federal budget deficit.
“When I took office, the deficit for 1998 was projected to be $357 billion and heading higher,” he said.
“This year, our deficit is projected to be $10 billion and heading lower. For three decades, six Presidents have come before you to warn of the damage deficits pose to our nation. Tonight I come before you to announce that the federal deficit, once so incomprehensibly large that it had 11 zeros, will be, simply, zero. I will submit to Congress for 1999 the first balanced budget in 30 years.”
In my analysis, the financial woes of the United States are entirely attributable to the fiscal policies of President Clinton who recklessly failed to seek the Blessings of the LORD to ensure that this nation will not borrow from other nations.
US Treasury seeks to borrow a record $3 trillion this quarter
Massive stimulus to support the U.S. economy through the Coronavirus crisis will cause the Treasury to borrow a record $3 trillion this quarter.
The department on Monday announced the total, which is actually $2.999 trillion.
“The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April – June until July, and an increase in the assumed end-ofJune Treasury cash balance,” the department said in a statement.
On top of that borrowing, Treasury also said it anticipates another $677 billion in the third quarter. First-quarter borrowing totaled $477 billion.
The red ink comes thanks to multiple stimulus efforts Congress has passed to resuscitate an economy brought to a standstill amid social distancing efforts to halt the virus spread. Allocations thus far have totaled more than $2 trillion, and at last one more package is expected to help the more than 30 million Americans who have hit the unemployment line as well as thousands of other businesses that have seen their revenue streams evaporate.
The Treasury Department also is backstopping several lending programs for the Federal Reserve, which is leveraging Treasury guarantees in programs aimed at providing another $2.2 trillion in funding to businesses and households.
Just since March 1, the national debt has grown by $1.5 trillion to $24.9 trillion, a 6.4% increase. The budget deficit through March, or the first six months of the fiscal year, totaled $744 billion, on pace to easily eclipse the biggest shortfall in U.S. history.