The Treasury Department plans to borrow $2.99 trillion from April through June to cover the federal government’s massive response to the coronavirus pandemic, issuing a tremendous level of debt to try and limit the economic impact on U.S. businesses and workers.
Last year, Treasury borrowed $1.28 trillion over 12 months. The $3 trillion in borrowing Treasury plans to do now would be done over just three months.
Congress has approved nearly $3 trillion in new spending in the past two months to try and arrest the economic fallout of the crisis. Because revenue levels are falling, Treasury is planning to issue large amounts of debt to cover these costs.
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Odd how our system seems to require high-end injections of several trillion dollars every few years. And I'm predicting there'll be no lack of buyers for $3T in bonds. Why am I still paying taxes?
ReplyDeleteThe principal buyer is likely to be the Federal Reserve.
ReplyDeleteIt either ends badly, like end-of-the-world-as-we-know-it badly, or we've reached post-scarcity, which would be the end of work as we know it and we can all live off each other and argue about pronouns.
ReplyDelete