CBO Projects Deficit to Reach $1 Trillion for Fiscal Year 2020.

Excerpt: “The U.S. budget deficit likely will break the $1 trillion barrier in 2020, the first time that has happened since 2012, according to Congressional Budget Office estimates released Tuesday.

After passing that mark this year, the deficit is expected to average $1.3 trillion between 2021-30, rising from 4.6% of GDP to 5.4% over the period. That’s well above the long-term average since around the end of World War II. The deficit since then has not topped 4% of GDP for more than five consecutive years, averaging just 1.5% over the period.”

This simply means more borrowing will take place to “true up” the deficit. Since this will take place, inflation will rise, as inflation is the expansion of the monetary bases. Pundits will celebrate the growth of the stock market, and state this is a measure of good economic growth. Is it?

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