The US federal surplus or deficit as a percent of GDP is seen from 1929 to the present. Recession years are shaded in grey
Daily Mail: Trillions in coronavirus spending could explode federal deficits to levels not seen since World War II, economists warn
* Analysts project federal deficits could approach 20% of GDP in 2020
* Deficit spending hasn't gotten near that level since all-out push in WWII
* Trump on Friday signed into law a $2.2 trillion aid package, the largest ever
* One report estimates the deficit will total at least $3.7 trillion in 2020
* National debt could rise to $29 trillion from an estimated $23.6 trillion right now
Federal spending in response to the coronavirus crisis is on track to explode deficits to levels not seen since World War II, experts and economists say.
A new study by Morgan Stanley estimates the deficit will total at least $3.7 trillion this calendar year, and $3 trillion next year, financed by the sale of Treasurys, largely to the Federal Reserve.
Depending on how much the U.S. economy declines, that could push the federal deficit to 15 to 20 percent of gross domestic product (GDP), a level not approached since the second World War.
By any accounting, the federal deficit will blow past the post-war record of 9.8 percent of GDP, set in fiscal 2009.
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WNU Editor: The U.S. is not the only country facing massive debt levels. I live in Canada and last year's federal government debt was CAD$768 billion. Current projected Canadian government coronavirus spending may reach $200 billion this year. And as for other countries, their money faucets are open even wider. Sighhh .... it is going to take generations to pay all of this off.
Update: Here is a worst case economic scenario .... The worst economic collapse ever? (Tuomas Malinen, GNS Economics).
