In August, the federal budget deficit reached $3 trillion, according to estimates from the Congressional Budget Office (CBO). This figure is a record.
The 2020 number is $1.9 trillion greater than the same timeframe in 2019, and represents more than double the largest annual deficit so far recorded, per the CBO report.
This astronomical increase came about as a result of the Wuhan virus related spending. The Hill reported that revenues are “down just 1 percent but spending up 46 percent compared to the same period last year.”
So far, the U.S. has spent $6 trillion in relief spending to stave off the dislocations brought about by the Wuhan virus. Tax revenues and other receipts were only able to cover half of this spending binge.
According to the CBO, the deficit for the fiscal year of 2020 will end up at $3.3 trillion per their estimates.
By 2021, the nation’s debt will surpass 100 percent of GDP— a feat that hasn’t been achieved since World War II. In the following years, debt levels are projected to reach historical records.
This is not a good sign for the U.S. Its current debt stands at roughly $27 trillion. Put in another way, the average American taxpayer would be put on the hook for $876,000 thanks to the U.S.’s government’s extravagant spending.
The U.S. government is playing with fire when it continues massive spending sprees. Civilizations have collapsed to the profligacy of its ruling classes.
The U.S. may be reaching a tipping point now that its spending is reaching record levels and the national debt is expected to soar above 100 percent. The first stage of collapse could be a potential sovereign debt crisis. From there, it could be a generalized economic collapse and even a social implosion.
We should not try to find out what this range of scenarios look like. If America’s political elite had more foresight, they would work assiduously to restrain the federal government and cut spending.