UPDATED 9:02 AM PT – Thursday, February 25, 2021
The U.S. is nearing a fiscal meltdown amid a rising national debt and federal spending due to coronavirus lockdowns. The Congressional Budget Office said the national debt is on track to exceed the size of the U.S. economy this year.
This may result in an even higher interest to be paid on the existing U.S. debt, which could increase commercial interest rates and push inflation up as well.
CBO provides additional information on the economic forecast that it initially released on February 1, 2021. https://t.co/fiqEMyJYQp
— U.S. CBO (@USCBO) February 23, 2021
Democrats are still pushing through their $1.9 trillion COVID-19 relief package, which will widen the budget deficit to almost $4 trillion. The national debt is set to exceed $30 trillion by December 31.
“There comes a point when printing money is counterproductive…I don’t think we are at that point, but nobody knew where that point was going to come and we don’t know now,” stated Charlie Munger, vice chairman of Berkshire Hathaway. “None of these people who are so pompously sure of things, because we all want assurances, so they provide it.”
U.S. fiscal performance is getting worse while Democrats are proposing even more costly federal spending projects as national debt spirals out of control.