EEH - The March Federal Budget Deficit Grew By 455% In Boom Times - Why?

• The March budget deficit came in at $660 billion, a record high for the month and 455% above the $119 billion deficit last March. Outlays were $927 billion vs. income of only $268 billion.
• Passing two $2 trillion stimulus packages within two months makes no sense when the U.S. economy is growing faster than at any time since the mid-1980s.
• With vaccine distribution going better than expected, the economy could open up by summer, pushing the GDP growth rate up to 7% or higher this year. Economists expect employers to add 7.1 million new jobs in 2021, the largest December-to-December gain ever recorded.
• We're seeing a great deal of asset inflation in everything from real estate to Bitcoin to stocks, and now in commodities, especially industrial metals related to manufacturing supply chains, and now we're seeing some secondary consumer effects.

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