Coronavirus: US to borrow record $3tn as spending soars
4 May 2020

The US has said it wants to borrow a record $3tn (£2.4tn) in the second quarter, as coronavirus-related rescue packages blow up the budget.
The sum is more than five times the previous quarterly record, set at the height of the 2008 financial crisis.

In all of 2019, the country borrowed $1.28tn. The US has approved about $3tn in virus-related relief, including health funding and direct payouts.
Total US government debt is now near $25tn.

The latest spending packages are estimated to be worth about 14% of the country's economy. The government has also extended the annual 15 April deadline for tax payments, adding to the cash crunch.

The new borrowing estimate is more than $3tn above the government's previous estimate, a sign of the impact of the new programmes.

Does the US debt of $20tn matter?
Discussions are under way over further assistance, though some Republicans have expressed concerns about the impact of more spending on the country's skyrocketing national debt.
The US borrows by selling government bonds. It has historically enjoyed relatively low interest rates since its debt is viewed as relatively low-risk by investors around the world.
But even before the coronavirus, the country's debt load had been climbing toward levels many economists consider risky for long-term growth, as the country spent more than it took in.

The US Congressional Budget Office last month predicted the budget deficit would hit $3.7tn this year, while the national debt soared above 100% of GDP.
Last week, the chair of America's central bank, Jerome Powell, said he would have liked to see the US government's books be in better shape before the pandemic
However, he said spending now was essential to cushion the economic blow, as orders to shut businesses to slow the spread of the virus cost at least 30 million people their jobs.
"It may well be that the economy will need more help from all of us if the recovery is to be a robust one," he said.

As part of its own relief efforts, the Federal Reserve has bought more than $1tn in treasuries in recent weeks.

Investors from foreign countries are also historically significant holders of US debt, with Japan, China and the UK at the top of the pack as of February.

Increased tensions between the US and China in recent years have renewed scrutiny of America's debt position. According to the Washington Post last week, Trump administration officials had discussed cancelling debt obligations to China, but US President Donald Trump reportedly played down the idea, saying "you start playing those games and it's tough".

Everybody will want to borrow during this trying time.

U.S IS A CONFEDERACY. QHQT THE FG DOES..DOESNT AFFECT THE STATE SIGNIFICANTLY. WORRYPRE ABOUT WHAT OGA BUBU IS BORROWING..

Formularcr7:
Everybody will want to borrow during this trying time.

Borrowing 100% of country GDP budget deficit of $3.7tr is insane.

The same America telling Nigeria her debt of less than 30% of her GDP is too high?

revolt:
U.S IS A CONFEDERACY. QHQT THE FG DOES..DOESNT AFFECT THE STATE SIGNIFICANTLY. WORRYPRE ABOUT WHAT OGA BUBU IS BORROWING..

Nigerian borrowing is still less than 30% of GDP

US indebted to China is the reason Trump trade flight is nonsense. China remain the boss


https://www.bbc.com/news/business-52537938

Cc lalasticlala
Cc Mynd44

watching as event unfold

Wow,that's huge!

Hmmmm

SocialFinance:


Nigerian borrowing is still less than 30% of GDP

When you mature you would know our budget is just lip service, nobody in this country implements anything for budget. Stop worrying about USA, worry about your country hypocrites, you complain about USA but if them throw you visa you go run go even in this pandemic.

TANTUMERGO007:

When you mature you would know our budget is just lip service, nobody in this country implements anything for budget. Stop worrying about USA, worry about your country hypocrites, you complain about USA but if them throw you visa you go run go even in this pandemic.

You think everyone is like you who have never been to airport before.

US visa na gold? Nonsense kid every where

China to the rescue again lol. Well that's if they are willing this time around but I don't think they will be interested in bailing them out. They might just decide to let the US drown this time around

rennon:
Afonjas media trying so much to justify Buhari's borrowing. Hell afonjas...US is not Nigeria. During Fiscal Year (FY) 2018, the US IRS collected nearly $3.5 trillion, processed more than 250 million tax returns and other forms, and issued almost $464 billion in tax refunds.

You know all these but you want Nigeria to pay every of her citizens payout like US
Want Nigeria to develop like America but must not borrow like America

You want Nigeria to grow like America where tax in some states can be up to 50% but you have never pay tax in your life, want free electricity, no vat, subsidised fuel and everything free.

American are paying for the life they enjoy, when will you start paying too

las las all these borrowing no make any sense.

Wetin consign me with their borrowing.

SocialFinance:


[s]You know all these but you want Nigeria to pay every of her citizens payout like US
Want Nigeria to develop like America but must not borrow like America

You want Nigeria to grow like America where tax in some states can be up to 50% but you have never pay tax in your life, want free electricity, no vat, subsidised fuel and everything free.

American are paying for the life they enjoy, when will you start paying too[/s]

Low IQ afonja

rennon:


Low IQ afonja

How does this your response represent the fact stated

Why is it so difficult for you Ipob the Kanu urine drinkers to make your point without using abusive language.

Anyway I have no time to waste with kids. Please go back to your toy.

jollymizzle:
China to the rescue again lol. Well that's if they are willing this time around but I don't think they will be interested in bailing them out. They might just decide to let the US drown this time around

You can say that again. China is baba for America