The US national debt now stands at $25 trillion and the national deficit is currently $2.6 trillion. According to the Congressional Budget Office (CBO), and other government watchdog groups, the deficit for FY2020 is expected to hit $3.8 trillion. Kapital Economics expects the deficit to be higher than $4 trillion. There are still ongoing discussion within The White House and Congress for additional rounds of spending. It should also be known that just for Q2 of 2020, the US Treasury will be issuing some $3 trillion in net new debt. For context, for the entire year, the Federal government collects around $3-3.5 trillion. So in three short months, the government will spend an entire year’s worth of revenue. So where does the money come from to pay for all of this? Thus the question – do debts and deficits matter? Kapital Economics says yes, and we believe we will be witness to these costs in the not too distant future. #Economy #Debt #Deficits #Recession #Depression #Jobs #Inflation Deflation #Stagflation #Hyperinflation #GDP #USA