The following report is from the Trends Journal:
The U.S. budget deficit totaled a record $738 billion during the first four months of the federal government’s current fiscal year, an 89% rise against the same period a year earlier, the U.S. Treasury Department reported.
Revenues reached $1.2 trillion for the period, also a record, while expenses soared 23% to a never-before-seen four-month total of $1.9 trillion.
For the 12 months ending 31 January, the deficit was $3.47 trillion, about 16.2% of GDP. In contrast, the deficit during the Great Recession peaked at 9.8% of GDP, according to the U.S. Treasury Department.
Revenue for the 12 months was 2.8% lower than the previous year.
The record budget gap was created by federal stimulus spending to keep the economy functioning during 2020’s lingering global economic shutdown and its aftermath.
Treasury secretary Janet Yellin and Jerome Powell, chair of the U.S. Federal Reserve, are among officials calling for additional deficit spending to bolster a still-feeble economy, saying that the danger of spending too little outweighs that of spending too much.
TREND FORECAST: What we are witnessing is unprecedented in peace-time history. Never before have nations sunk so deep in debt to artificially pump up markets.
What does it mean? What’s next? Read all about it in Gregory Mannarino’s new article, “WORLD CENTRAL BANKS: RUNNING A MASSIVE PONZI SCHEME.”
TRENDPOST: As we continue to note, there is no relationship between Wall Street and Main Street. As equities hit new highs and the rich get richer, the sentiment among the average Joe and Jane is dismal. The University of Michigan’s consumer sentiment index slipped from 79 in January to 76.2 in February, the university reported, compared to 101 in February 2020.
The outlook was mostly glum among households earning less than $75,000. The survey’s rating was the lowest since August when there were glimmering hopes for an economic revival.
AUTHOR COMMENTARY
[26] Be not thou one of them that strike hands, or of them that are sureties for debts. [27] If thou hast nothing to pay, why should he take away thy bed from under thee?Proverbs 22:26-27
Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.
Romans 13:8
Meanwhile former President Trump is quoted as saying “Who the hell cares about the budget? We’re going to have a country,” in 2020 in the context of raising the defense budget to $2.5 trillion. Never mind those statements. Never mind he when tweeted that the American dollar is too strong. Never mind that China’s exports reached new record highs and our trade deficits were the highest since 2008. Never mind all those “pork” filled stimulus packages of $6.2 trillion and $900 billion. Never mind his total downplaying of the abysmal economy we were and are in. But hey, let’s run out and vote for a man that has filed bankruptcy twice, and potentially faces a third one currently because of all the debt he amasses.
That being said, the Biden administration will just stick a dagger into this mess. As the Trends Journal and The WinePress have been reporting, the markets have zero basis on any kind of reality. If they did, the markets would be down thousands and thousands of points. But the more debt, stimulus, and inflation is created, then the markets will ascend higher.
This is just further evidence this economy is in freefall and you MUST be preparing for the collapse.
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