After printing trillions of dollars for stimulus money, the USA is looking for a friend to help them out.
Bail money. The US is looking to borrow $3 trillion in the 2nd Quarter of 2020.
- In 2019, the national debt rose $1.28 trillion. Now the debt clock is approaching $25 trillion after $3 trillion in COVID relief spending.
- The first round of relief spending amounted to 14% of the total value of the US economy.
- New record! This amount beats the previous quarterly spending record at the peak of the 2008 financial crisis.
Big deficits. In April, the US Congressional Budget Office predicted the US budget deficit would hit $3.7 trillion this year.
How does it affect my wallet?
How the USA is coping: The US government borrows money from selling government bonds, but now the national debt is climbing to what experts believe are risky levels.
- Japan, China, and the UK are the largest foreign holders of US debt.
More trade wars? As tensions between the US and China rise (again), China’s ‘debt’ grip around the US could become a real worry if another trade war kicks off.
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