The government ran up the largest monthly deficit in history in February, keeping the flood of red ink on track to top last year's record for the full year.
There no end to the spend, spend, spend. Depending on first quarter GDP growth, say 3% nominal, this places the Formula or US Federal Budget Deficit as % GDP at or near the high water mark -10% for this cycle (third Great Depression). The all time high deficit was recorded during the second Great Depression at -29.7% in 1943.
US Federal Budget (Surplus or Deficit As A % of GDP, 12 Month Moving Average) and Gold London P.M. Fixed:
Source: finance.yahoo.com
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