Bob ‘Sully’ Sullivan: How will government finance stimulus spending?

SAN DIEGO (KUSI) – During the last two months, Congress has passed $3.6 trillion in stimulus spending, with more probably on the way.
Washington’s annual deficit was likely to be around $1 trillion before the COVID-19 pandemic induced a recession.

The deficit will now hit at least $3.7 trillion this year and $2.1 trillion next year, according to the Congressional Budget Office.

That debt this year will be the highest since World War II, and possibly higher if there’s more stimulus spending.

According to Sully, there are only three outcomes when you flood the economy with “dollars out of thin air” like we are witnessing with incredible velocity from the Fed.

1.     The govt would have to raise taxes to pay for all of this
2.     The govt would have to stop spending money
3.     The govt would have to monetize the debt purchase government securities low – sell high – aka quantitative easing and repoprogram.

Radio talk show host Bob ‘Sully‘ Sullivan joined Good Morning San Diego to take a closer look at new taxes coming to finance stimulus spending.

Categories: Coronavirus, Good Evening San Diego, Good Morning San Diego