The United States has a great mechanism to limit government spending or borrowing. It is the debt ceiling. When it is raised the government is no longer allowed to make any new debt. Remember this when the next political debate is there about it.
The Corona pandemic has ensured lockdowns around the world where happening. Masks have to be wear in airports and aircraft. Social distancing is the new disturbing standard.
When we look at the results for the economy than we see something terrible. The lockdown has ensured businesses will close for good.
With the stimulus and guarantees for loans, that are forgiven when you don’t fire staff, this will do only 1 thing with the USA government deficit. It went ballistic. Technical bankrupted and the new debt levels are insane. There is no other word for it.
It is expected that the USA will spend over 1,05 Trillion USD due to this. This is no problem. If you have the money. But the USA government has only a rough 400 billion in the bank. The rest will be borrowed.
So why does it matter? Well for good reason. Deficits are wealth confiscation. in the future. This is so true. Therefore we need to prepare for it right now.