FX.co ★ Main consequence of growing US national debt

The US budget deficit has exceeded $864 billion. According to the Washington Post, the indicator reached the record high.

A large amount of money was used to combat the coronavirus pandemic. Thus, the US budget expenditures exceeded $1.1 trillion at the beginning of summer, and only $240 billion returned to the treasury.

If we compare the figures for the last year, the US budget deficit in June was less than $8.5 billion.

Globally, coronavirus spread in March. Since then, the US authorities have spent about $3 trillion to stimulate the economy during a period of the global isolation.

The US hit record high both in the number of infected people and in the amount of national debt. So, in June, the US national debt reached the all-time high and exceeded $26 trillion amid the coronavirus pandemic. Analysts are sure that the US federal budget spending will exceed revenues by $4 trillion in 2020. The last time such a situation was observed in 1945.

Moreover, the US national debt continues to rise. This, in turn, could lead to serious consequences. The US dollar may depreciate, and after that, emerging markets will collapse, because all of them depend on the US national currency.