Federal Budget Deficits: To $30 Trillion And Beyond…U.S. federal debt to exceed size of economy even before Biden stimulus is approved… Food, gas prices likely to keep rising

In my decade forecast, I projected that in the next recession that the deficit would climb to over $2 trillion. Clearly, that demonstrates I am an optimist. Here’s a chart I shared back in January.

Between reduced tax revenues and increased spending, I now expect this year’s deficit will be at least $4 trillion.

I will bet you a dollar to 40 doughnuts that we will see at least another $1 trillion emergency spending bill to be spent in the third quarter. My logic is as follows.

The following equation is used to calculate the GDPGDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports).

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This transforms the money-value measure, nominal GDP, into an index for quantity of total output.

I wrote recently about the long-ago political decision to include government spending in the GDP numbers. U.S. GDP is roughly $20 trillion a year (using numbers that are easy to divide). That means $5 trillion per quarter.

www.forbes.com/sites/johnmauldin/2020/04/02/federal-budget-deficits-to-30t-and-beyond/?sh=6f8eafcd5508

America’s federal debt is set to exceed the size of the entire U.S. economy this year for only the second time since the end of World War II, a reflection of the extraordinary emergency measures approved by Congress in response to the coronavirus pandemic, the nonpartisan Congressional Budget Office said Thursday.

www.msn.com/en-us/money/markets/us-federal-debt-to-exceed-size-of-economy-even-before-biden-stimulus-is-approved-cbo-says/ar-BB1dBmvp

Nationally, the average price of gasoline is $2.72 per gallon, up 12 cents in a week, according to the American Automobile Association.

“Barring hurricane season, March may bring the most expensive pump prices of 2021,” said Jeanette Casselano McGee, a AAA spokesperson. “While the month is roaring in like a lion, by the end of it we could see some relief at the pump as refineries resume normal operations, especially if crude oil prices show signs of stability.”

A devastating recent winter storm that hit Texas and the southern Plains also caused several oil refineries to shut down, also impacting gas prices.

www.ajc.com/news/nation-world/food-gas-prices-likely-to-keep-rising/EQMNC3OYQ5B3JMWP345OR6NER4/

America’s unemployment problem is much worse than it seems

www.cnn.com/2021/02/23/economy/powell-inequality-senate-hearing/index.html

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