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In fiscal year 2021, which ended 30 September, the U.S. budget deficit climbed to $2.8 trillion, second only to fiscal 2020’s $3.1 trillion when the federal government and U.S. Federal Reserve flooded the economy with gifts, grants, and loans to keep it from crashing.
The previous record deficit was 2009’s $1.4 billion during the Great Recession, half of the hole dug in the fiscal year just closed.
The government spent $6.8 trillion in the most recent fiscal year, 4.1 percent more than the previous year, according to the White House Office of Management and Budget (OMB).
Federal revenue was $4 trillion for the year, 18.3 percent above federal projections, the OMB reported.
In July, the Congressional Budget Office (CBO) forecast a $3-trillion deficit for the new fiscal year. However, it now says the deficit will be less because of the unexpectedly high revenues last year.
The 2021 deficit resulted from economic stimulus plans enacted by Congress under presidents Biden and Trump both, the OMB noted.
TRENDPOST: As we noted in “U.S. Deficit Up, Going Higher” back on 17 March, 2020, government deficits, be they in America or around the world, are now downplayed by the government and pretended to be non-detrimental to a nation’s economy or its currency.
However, as inflation and the “Greatest Depression” drags economies lower and currencies grow weaker, the implications will be recognized and prices for precious metals and cryptocurrencies will continue to spike to new highs.