National Debt Tops $26.5 Trillion, 2020 Deficit Could Hit $6 Trillion
IN THIS ISSUE:
1. National Debt Tops $26 Trillion, On Way To $30 Trillion Soon
2. The Cost of Servicing Our National Debt Can Only Go Up
3. Another Huge Economic Stimulus Bill Expected Just Ahead
4. What To Do With the Extra $600/Week Jobless Benefit?
The US National debt surged to a record $26.5 trillion at the end of June, the highest level of any country in the history of the world. At that level, our national debt is equal to 132.5% of Gross Domestic Product, also the highest level ever recorded. The federal budget deficit for fiscal year 2020 is projected to top $3.7 trillion, according to the Congressional Budget Office, and it will be considerably higher if Congress passes another stimulus bill just ahead.
As long-time clients and readers know, I have railed against government deficit spending and our national debt for decades – to no avail. There is no longer any talk of balancing our budget, not even among Republicans. Sadly, most Americans today are oblivious to the national debt. And why not? The media has assured us for decades that the national debt doesn’t matter.
I haven’t written about our national debt in some time, largely because I feel like a broken record no one wants to hear anymore. This year, however, we’ve seen our national debt explode as never before. For that reason, I feel obliged to bring it up once again.
National Debt Tops $26 Trillion, On Way To $30 Trillion Soon
According to the Treasury Department, the US national debt topped $26.5 trillion at the end of June. At the end of 2019, the debt stood at $22.8 trillion. So, in only six months, we have increased the national debt by almost $3 trillion, the fastest rise in US history.
As you can see in the above chart (bottom right), our Debt-to-GDP Ratio is now at a record 132.5%. Gross Domestic Product, the value of all finished goods and services, is estimated at just over $20 trillion in 2020. As you can also see above, our Debt-to-GDP Ratio has more than doubled since 2000.