Since March 1, 2020, Treasury borrowing has risen by over $6 trillion. Most of that increase has occurred since March 30, 2020, which was just after the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest piece of relief legislation to date, was enacted. To support COVID-19 relief and recovery, the Treasury has been required to borrow substantial sums of money. Fortunately, they have been able to easily raise such funds at low interest rates; as the economy stabilizes, though, focus needs to return to the country’s underlying fiscal situation and pay for any new priorities that arise. However, new priorities have indeed arisen. Unfortunately now with wars on multiple fronts, Ukraine, Palestine, and Syria, the printing of trillions upon trillions continues. The Fed says it’s raising interest rates due to the resilience of the economy and the American consumer. Do you think printing trillions every year or the poor American consumer is responsible for rising prices and CPI?
