US deficit to hit $1 trillion

USA Today reports:

The nation’s annual federal deficit will grow “rapidly” over the next four years and will exceed $1 trillion by 2020, the nonpartisan Congressional Budget Office said Monday.

The deficit will hit $804 billion this year, a 21% increase over 2017, and will continue to grow through 2022 — hitting historically high levels and adding to the national debt.

The changes are a result of lower revenues, stemming from the Republican-crafted tax cut law enacted in December, and increased spending from the bipartisan budget agreement Congress passed earlier this year.

The budget deficit will be 4.2% of the nation’s gross domestic product in 2018, and will grow to 5.1% in 2022, the CBO estimates.

That is a huge deficit – both in nominal terms and in terms of a percentage of the economy.

When the reckoning comes, it will be ugly.