Biden Administration Posts Record Deficit of $660 Billion In March
In March 2020 the U.S. Federal Government posted a deficit of $119 billion, reflecting the already profligate spending of Washington pre-pandemic. One year later, with President Biden going literally for broke, Covid related federal spending pushed government outlays to $927 billion, with receipts of only $268 billion, leaving a record deficit for March 2021 of $ 660 billion.
Not during Franklin Roosevelt’s Great Depression era New Deal program, or the massive stimulus budget of the Obama administration in the wake of the Global Financial Crisis has there been such dizzying levels of federal spending. The deficits incurred by Washington are fully matched by state governments, as well as sovereigns throughout the world.
Despite the record price levels on equity markets and particularly on Wall Street, there are worrying signs of approaching inflation. As this blog has warned before, significantly higher rates of inflation will compel the Federal Reserve to abandon its near-zero interest rate policy. Once interest rates rise to anything approaching normal levels, debt servicing costs for Washington will balloon to an unsustainable level.
Sheldon Filger-blogger for GlobalEconomicCrisis.com