Posted on 05/04/2020 2:14:24 PM PDT by yesthatjallen
The Treasury Department will borrow a record-breaking $3 trillion between April and June as it moves to dispense emergency relief for the coronavirus pandemic.
In a Monday statement, the Treasury said that it expected to borrow $2.99 trillion "in privately-held net marketable debt," which would leave it with a $800 billion cash balance at the end of June.
Congress has passed roughly $3 trillion worth of spending to help prevent an economic collapse during the pandemic, including stimulus checks, expanded unemployment insurance, forgivable loans to small businesses and other financing options for larger businesses.
SNIP
That figure will be more than double the previous record for the largest annual deficit, which amounted to $1.4 trillion in 2009, the peak of the Great Recession.
All that borrowing is set to push the nation's overall debt load beyond 100 percent of GDP for the first time since World War II.
(Excerpt) Read more at thehill.com ...
Get one of those credit cards with zero interest for like 10 years, and a limit of 5 trillion dollars.
Conjuring money from-thin-air, delusional nation.
Yeah, I had a pretty good idea it would be the fed. I’ve seen the video, The creature from Jekyll Island.
Same here.
They all find a good reason don’t they.
Imagine if we had taken COVID-19 in stride, had kept working
instituted some reasoned precautions, and had skipped these
massive bailouts.
We’re essentially burning through trillions of vapor
dollars.
If only Bloomberg gave us each a million like the people on MSNBC said, can I feel kind of good a out this.
3 trillion!!
That’s astonishing. A close but distant eye popping # once was A Rod signed a 252 USD million 10yr contract in the year 2000.
I said, he’s rich.
In 8th grade, Mr. Johnson in 1984 and talk of 1 trillion debt.
You hope it continues to be fashionable and all countries are printing cash.
Hey, worked in 2008-?
The Federal Reserve could actually do that. And as existing debt matures, it would lower the interest payments the federal government pays in the future. We paid $404 billion in interest last year.
I'm not sure what effect it would have on the financial markets, if the US federal government isn't issuing new debt at market rates.
"The federal debt at the end of the 2018/19 fiscal year (ended September 30, 2019) was $22.7 trillion. The portion that is held by the public was $16.8 trillion. Neither figure includes approximately $2.5 trillion owed to the government.. Interest on the debt was $404 billion." - wikipedia
It would also have a negative effect on trust funds like Social security and Medicare that invest in US Treasuries. But that would be a wash from a whole of government view.
L8r
Hey President Trump, still think the shutdown was a good idea?
I still cannot believe Trump fell for this steaming pile of BS! So disappointing!
there’s never a good time to be a borrowing 3 trillion dollars and never a good time to owe 30 trillion. They’ll never be paying 0% interest the best they will pay is two or three and do you have any idea how much that is on almost 30 trillion dollars?
Who’s gonna buy all these “treasuries”? China sure ain’t.
My guess is the fed is going to print a couple of trillions and suck up a bunch of outstanding treasuries in the open market and create a demand that way.
Hooray! We get our our FREE MONEY on Wednesday.
That’s cool,my daughter and cousins and their kids will pay for it!
“fortunately the interest rate is zero ... perfect time for Treasury to be borrowing money”
Treasuries are sold at auctions and that’s where the interest rate is set. So the interest rate that they’re sold at will depend on the demand. I doubt very much it will be near zero.
And to try and make this turd more palatable, Trump will come out telling us what a great thing it is, while his new bestest buds, Fauci and Birx, continue to help set policies to destroy what’s left of our economy!
I’m also sure Trump will remind us how great the economy was prior to shutdown!
So glad me and my wife do NOT have kids!
6/5/33 was the beginning of the end.
““Borrow from who?”
The Chinese.”
One of the positive side effects of having a big trade deficit with the Chinese was that they used most of their trade surplus dollars to buy treasuries and thus fund our budget deficits.
In essence they were feeding and encouraging our bad habit of deficit spending. (No, I’m not blaming the Chinese for our bad habit).
That’s not going to happen this time around.
But a zero interest (or close) it’s not horrifying. They should be rolling ALL of their debt during this time. Pay off old debt with free money.
The Chinese don’t have any money at the moment. We simply print it.
No problem, Debbie Birx’s grandchildren will pay it back
I thought they stopped buying treasuries a couple years ago.
They are buying Gold now.
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