Astronomical debt: the US will take more than the total over the past 5 years

US, WASHINGTON (ORDO NEWS) — Inflate a public debt like a balloon. The US is preparing to borrow $ 3 trillion in the second quarter, and another $ 677 billion between July and September.

In total, in 2020, the States plan to place bonds for $ 4.4 trillion – this is more than the last five years combined, and almost two and a half times more than the previous record. Recall that in fiscal 2009, Americans took $ 1.85 trillion to fight the recession.

It is also worth adding that the coronavirus has radically changed the fiscal policy of the American authorities.

On February 3, the US Treasury announced that in the second quarter it was planning not only to increase debt, but even to reduce it by $ 56 billion, but now there is no talk of conservative plans.

The funds will be used to combat the consequences of the pandemic, however, such a sharp increase in debt can finally undermine the confidence of market participants in the dollar.

The forces of the Federal Reserve System have been thrown to help – it, in fact, monetizes the public debt. Over the past six weeks, the U.S. Central Bank bought government bonds worth $ 2.5 trillion and is now buying twice as much as issuing the Treasury.

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