The Treasury Department says it will need to borrow a record $2.99 trillion during the current April-June quarter to cover the cost of various rescue efforts dealing with the coronavirus pandemic.

Treasury said Monday that the $2.99 trillion it plans to borrow this quarter will far surpass the $530 billion quarterly borrowing it did in the July-September 2008 quarter as it dealt with the 2008 financial crisis.

The extraordinary sum of $2.99 trillion of borrowing in a single quarter dwarfs the $1.28 trillion the government borrowed in the bond market for all of 2019.

Treasury said the huge sum is needed to fund the nearly $3 trillion the government has approved in various programs to support workers and businesses with direct economic payments, the Paycheck Protection Program and other efforts. In addition, the government needs to borrow to cover the shortfall in revenue that will occur because the Trump administration has delayed the deadline for tax payments this year from April to June.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Demand for gold as a ‘monetary alternative’ to rise dramatically, Peter Schiff tells Boom Bust

RT’s Boom Bust is joined by CEO of Euro Pacific Capital Peter Schiff, who projects that all the metals will be driven much higher by inflation. The veteran stockbroker says he is “bullish on copper,” adding that for different reasons…

Facebook to cut video streaming quality in virus-hit Europe

BRUSSELS (Reuters) – Facebook will downgrade video streaming quality on its platform and on Instagram in Europe, the latest U.S. tech giant to respond to an EU call to stave off internet gridlock as thousands work from home due to…

Europe’s stagnant economy is in poor shape to cope with a hit from the coronavirus

London (CNN Business)Recession fears are stalking Europe again after Germany’s economy flatlined at the end of 2019. The coronavirus now threatens to slam exports to China. The German economy did not grow in the final three months of last year,…

Chinese firms expected to grow steadily overseas

Chinese companies will manage to achieve reasonable growth in overseas markets in fields such as project development, manufacturing and services this year, despite the novel coronavirus pneumonia epidemic, said business leaders and officials. The nation’s pace of outbound direct investment…