Oct
21st
Tue
21st
How big will the coming US deficit be? The official estimate is $700 billion. Forget it, the actual deficit will be between $1 trillion and $4 trillion, probably closer to $2 trillion. In a $14 trillion economy, a $2 trillion deficit would mean that the deficit would be 14% of Gross Domestic Product. In the past, 6% was considered a crisis percentage. In Europe the legal limit is a deficit of 3% as a percentage of GDP. Deficits of above 3% brought warnings (Italy) of a crisis.
— Richard Russell
