U.S. is closing in on doing something it hasn’t done since World War II — borrowing more money than it raises

MarketWatch/Jonathan Nicholson

“Amid the economic devastation caused by the coronavirus pandemic, the U.S. government is nearing a new — and potentially ominous — fiscal milestone: It will borrow as much or more this year than it raises through taxes and other means. The last time that happened was in the final year of World War II.”

USAGOLD note:  The greatest danger comes down the road if and when the Fed finds it necessary to raise interest rates and interest paid on the national debt becomes a heavy fiscal burden.  In other words, it may be a very long time until we feed our way out of the economic woods. This report ties meaningfully into Alan Greenspan’s observations immediately below.

Cartoon courtesy of MichaelPRamirez.com

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Repost from 8-20-2020