© Kevin Lamarque / Reuters
The deficit is expected to be $152 billion more than last year and $56 billion larger than CBO's forecast in March and will equal 3.2 percent of the country's economic output.
Such a budget deficit is more than the GDP of Sweden, Poland or Iran. In July, the US posted a $113 billion budget gap, bigger than the economies of Ukraine or Slovakia.
The largest deficit America has seen is $1.4 trillion in 2009, which dropped to $485 billion in 2014. US public debt will continue to grow and is projected at 77 percent of the country's GDP by year-end.
On Wednesday, US public debt was more than $19.4 trillion, or almost $60,000 per citizen and $164,432 per taxpayer. Federal spending was approaching $4 trillion with Medicare/Medicaid, social security and the military being the largest budget items.
American revenues have grown by less than one percent in 2016 instead of the expected five percent. The reasons are mandatory spending for Social Security and Medicare, the federal retirement and healthcare programs for the elderly, CBO said.
The economy grew only one percent in the first half of the year, but the last months of the year will see a boost, according to CBO, bringing a two percent growth this year and 2.4 percent in 2017. This will add to hiring, putting pressure on inflation and interest rates.
Money grows on trees in the U.S. It must, given the way Trillions of dollars go missing on a regular basis. Take the missing two trillion that Donald Rumsfeld spoke of on the morning of 9/11 [Link] , or the six trillion that went missing from the housing market in 2006 through 2008 [Link] and the six point five trillion which is now said to be missing from the accumulated pentagon budget for the past twenty years [Link]
In the midst of all of this there is the six billion that Hillary has run off with [Link] while running the state department.
Compared to all of this, five hundred and ninety billion is a drop in the bucket and that much can be printed up by the FED over a weekend. It is no wonder the U.S. is trying to keep other countries and economies on the rocks because if any nation were to show a better, stronger economy then the money tree in Washington will begin to wilt.