According to the US Treasury Department, the US Treasury deficit fell to $63 billion in comparison with $120 billion in the same month last year.
The drop in the deficit was facilitated by a significant increase in budget revenues caused by the postponement of tax payments due to the COVID-19 pandemic.
However, in the coming months, the volume of budget revenues is likely to decline, as the US economy is recovering very slowly from the deep crisis.
American investor and multimillionaire Jim Rogers are confident that a new market crash will happen soon. The expert thinks that the coronavirus crisis is not over yet, and its consequences will last for a long time.
Due to the fact that the US Congress allocated several trillion dollars to support the economy, spending has soared by 51% since the beginning of the current fiscal year to $5.631 trillion.
Even despite huge spending and growing national debt, the US Congress continues to stimulate the economy. The CBO warned that the deficit could widen even further. Nevertheless, US President Donald Trump signed an order on the partial refund of payments to the unemployed using money from the Emergency Relief Fund.
The state budget deficit at the end of the last financial year increased by 26% reaching $984.388 billion. It is the maximum level over the last seven years.
The deficit has been widening for four years in a row. It is the longest period of continuous growth since the early 1980s. The US budget surplus was last recorded in 2001.
Governments are printing and spending enormous sums of money. Perhaps the market will face another "bubble" that could burst.
Mr. Rogers recalled that during the crisis of 2008, many countries faced problems due to large debts. Since then, debts have skyrocketed around the world, especially in the past few months. America has become the "winner" in the number of coronavirus cases. And now it is the largest indebted country in history. The world leader owes trillions of the US dollars. Japan is also not far behind. Its debt is enormous. "There are big debts all over the world", says Mr. Rogers.
Despite the fact that the US deficit is decreasing, Jim Rogers believes that the world will soon face very dire economic problems. Perhaps, after the US presidential election in November. But definitely next year or later, the world will face gigantic financial problems due to huge debts.
Before the elections, the US government will print, borrow, and spend large sums of money, and other countries will do the same. This is another reason for the possible collapse after the elections.
In any case, all countries will be affected as debt levels around the world are much higher than they used to be. Moreover, countries continue to increase it.
Meanwhile, the expert believes that if you invest in a destroyed country, then in 5-6 years you can earn a lot of money. Therefore, he advises traders to invest in Venezuela or North Korea, as these countries are going through a disastrously difficult time. Nowadays, it is cheap to invest in them, but in a few years, you can become rich thanks to this.
