Due to the COVID-19 pandemic’s consequences for the economy the US Treasury has recently announced it is going to borrow $3 billion.
Public debt keeps getting bigger . The US Federal Reserve is not only printing dollars with the unprecedented speed but even the Government itself is increasing its national debt.
According to the recent statement made by the Department of treasury, the country is planning to borrow $3 billion for April-May expenditures. It’s two times more than the Government used to borrow last year, and five times more than was borrowed at the peak of 2008 crisis. Besides, the Department of Treasury can borrow $677 billion more in the period May to September.
The US current public debt levels reach the all-time highs – $25 trillion. That’s 116% as a percentage to GDP.
Amidst the COVID-19 pandemic public dept has become the primary issue. Many analysts are bothered by that the loans taken for overcoming the pandemic consequences may lead to chaos in the long-term perspective. The USA are not the only country that has to borrow money. Thus, the Japanese bank has committed to purchase an “unlimited” amount of public debt. On the other hand, EU has recently launched a fund amounting to trillion euro for assistance in combating the pandemic. Still it is unclear whether these measures may keep the coming economic consequences. We will see what happens as time goes but the current situation is definitely a catalyst for spread of the fiat currencies’ alternatives. And this is where cryptos come into play.