The United States is in debt this year $ 3.1 trillion

IIn the United States, the budget deficit has tripled compared to the previous year due to the corona stimulus packages: In the fiscal year up to and including September, the American government made a loss of 3.1 trillion dollars (2.65 trillion euros). The deficit for 2020 was two trillion higher than estimated at the beginning of the year, as the Ministry of Finance said on Friday. In the previous year, the shortfall was still $ 984 billion.

In order to cope with the severe economic consequences of the coronavirus pandemic, Congress has already adopted economic stimulus measures worth around three trillion dollars since March. That is why the expenditure in the past fiscal year was 6.5 trillion well above the income of 3.4 trillion, as the ministry announced.

The unemployment rate is falling again

The public debt of the American government increased significantly during the tenure of President Donald Trump despite the good economic situation and is now around 21 trillion dollars. That is almost the entire annual economic output of the United States.

The pandemic and the measures taken to contain the virus had sent the American economy downhill from March. Growth collapsed and unemployment soared to record highs. According to the Federal Reserve (Fed), the extensive stimulus packages helped prevent an even more dramatic slump. The economy is now recovering and the unemployment rate has also fallen significantly: it stood at 7.9 percent in September. Before the pandemic, however, it was only 3.5 percent – the lowest level in decades.

Dispute over another stimulus package

The government and Congress have been negotiating a further trillion dollar stimulus package for months. The Federal Reserve has warned that the economic recovery could stall if there is no new injection of government money. Trump’s Republicans and Democrats still have very different ideas about another stimulus package. An agreement on a new package therefore seemed increasingly unlikely before the US election on November 3rd.

The government recently proposed a $ 1.8 trillion package, but the Democrats are calling for more extensive action. An economic stimulus package requires the approval of both chambers of parliament: the Democrats control the House of Representatives, the Republicans the Senate.

Among other things, the Democrats also want to help states and municipalities that have suffered major revenue losses due to the pandemic. The Republicans reject it. Their proposal to give employers largely immunity for possible corona lawsuits is rejected by Democrats. The Republicans had also proposed that smaller parts be passed where there was agreement. The Democrats only want to accept a comprehensive package.

In the United States, the number of new corona infections is also increasing again every day. After the number remained at around 40,000 for a long time, around 60,000 people have recently been infected every day. Experts now fear a further increase.

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Shadow unemployment: the gaps in the statistics


It’s five to twelve: Employment Agency in Hamburg
Image: dpa

Much more people than the official quota shows have nothing to do at the moment. This also applies to Germany, where many people had to go on short-time work.

Kcan that really be? The economy is plunging into the deepest recession in a long time because of Corona – but the officially recorded unemployment is rising only a little, almost at a snail’s pace? According to the Eurostat statistics office, the unemployment rate in the euro zone was 7.2 percent in March, but the latest figures for July mean that it has increased to 7.9 percent. According to these statistics, only around one million more people have been on the streets since March, a total of 12.8 million. But these numbers only show part of the truth. At the same time, millions of people have been forced to reduce their jobs to short-time work; others have lost their jobs but do not appear in the official statistics as unemployed.

Economists at the major Swiss bank UBS have therefore carried out a calculation of “shadow unemployment”. Their result: In the spring quarter, actual unemployment in the euro zone was 20 percent and now, in the third quarter, it is probably 15 percent. That is twice as much as in the Eurostat figures. In Spain, UBS economist Anna Titareva suspects that despite the recent decline in short-time work, there are still well over 20 percent non-working people, in Italy almost 20 percent, in France around 13 percent and in Germany around 12 percent.

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Federal Reserve Expects Dramatic Slump in Economy

DThe US Federal Reserve anticipates a dramatic decline in US economic output of up to 30 percent in the current quarter. It is quite possible that gross domestic product (GDP) will decrease by 20 to 30 percent as a result of the corona pandemic, Fed director Jerome Powell said in a television interview on Sunday evening (local time). However, he also expects the American economy to pick up somewhat in the third quarter.

In the current quarter, American economic data would be “very, very bad,” the director of the Federal Reserve told CBS. He expects the unemployment rate to rise to 20 to 25 percent.

Largely brought to a standstill

Economic output in the United States had shrunk by 4.8 percent in the first quarter. The pandemic had not yet been fully reflected in the balance sheet for January to March. In the United States, nearly 36.5 million people have lost their jobs as a result of the crisis. The unemployment rate skyrocketed from 3.5 percent in February to 14.7 percent in April.

The virus and the initial restrictions and other measures imposed on its spread have largely halted economic activity in many industries in the United States. Many companies had to close, at least temporarily.

However, central bank chief Powell does not expect the recession to reach dimensions similar to those of the great economic crisis in the 1930s. Unlike in the past, the US economy was healthy before the current crisis and the banks were in a stable condition.

The Fed director emphasized that he saw a “good chance” that growth would increase again in the third quarter. In the second half of the year, the American economy is expected to “continuously recover”. The decisive factor, however, was that the spread of the coronavirus is decreasing, the central bank chief emphasized. In order for the economy to recover completely, it may be necessary that there is a vaccine against the novel pathogen.

As a measure against the economic crisis, the Fed cut the key interest rate to a level between 0 and 0.25 percent in a drastic step in mid-March. She had also announced massive bond purchases to pump money into the economy.

The American Congress also launched several aid packages, the largest of which has a historic record volume of around $ 2 trillion. The opposition Democrats also voted on Friday with a majority in the House of Representatives an additional gigantic bailout program of $ 3 trillion. However, there are hardly any chances of its implementation, since the program is rejected by the Republicans dominating the Senate.

The United States is by far the world’s hardest hit by the pandemic. 1.48 million cases of infection and almost 90,000 deaths were recorded there as of Sunday.

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Federal Reserve Expects Dramatic Slump in Economy

DThe US Federal Reserve anticipates a dramatic decline in US economic output by an annualized up to 30 percent in the current quarter. It is quite possible that gross domestic product (GDP) will decrease by 20 to 30 percent as a result of the corona pandemic, Fed director Jerome Powell said in a television interview on Sunday evening (local time). However, he also expects the American economy to pick up somewhat in the third quarter.

In the current quarter, American economic data would be “very, very bad,” the director of the Federal Reserve told CBS. He expects the unemployment rate to rise to 20 to 25 percent.

Largely brought to a standstill

Economic output in the United States had shrunk by 4.8 percent in the first quarter. The pandemic had not yet been fully reflected in the balance sheet for January to March. In the United States, nearly 36.5 million people have lost their jobs as a result of the crisis. The unemployment rate skyrocketed from 3.5 percent in February to 14.7 percent in April.

The virus and the initial restrictions and other measures imposed on its spread have largely halted economic activity in many industries in the United States. Many companies had to close, at least temporarily.

However, central bank chief Powell does not expect the recession to reach dimensions similar to those of the great economic crisis in the 1930s. Unlike in the past, the US economy was healthy before the current crisis and the banks were in a stable condition.

The Fed director emphasized that he saw a “good chance” that growth would increase again in the third quarter. In the second half of the year, the American economy is expected to “continuously recover”. The decisive factor, however, was that the spread of the coronavirus is decreasing, the central bank chief emphasized. In order for the economy to recover completely, it may be necessary that there is a vaccine against the novel pathogen.

Fed chief Jerome Powell

As a measure against the economic crisis, the Fed cut the key interest rate to a level between 0 and 0.25 percent in a drastic step in mid-March. She had also announced massive bond purchases to pump money into the economy.

The American Congress also launched several aid packages, the largest of which has a historic record volume of around $ 2 trillion. The opposition Democrats also voted on Friday with a majority in the House of Representatives an additional gigantic bailout program of $ 3 trillion. However, there are hardly any chances of its implementation, since the program is rejected by the Republicans dominating the Senate.

The United States is by far the world’s hardest hit by the pandemic. 1.48 million cases of infection and almost 90,000 deaths were recorded there as of Sunday.

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Germany: “We supporters are no longer worth anything”

“The first and second German football leagues will be able to continue playing according to the agreed rules, from the second half of May.” When Chancellor Angela Merkel announced the resumption of the Bundesliga on May 6, but behind closed doors, Germany did not rejoice. Several Länder leaders had expressed their opposition to this takeover and, in general, few politicians were in favor of it, except for the President of Bavaria, the incontrovertible Markus Söder, for whom “A weekend with football is infinitely more bearable than a weekend without”. But the pressures were so great that the government eventually folded, as it did on so many other subjects – approving a Land-to-Land deconfinement, for example. “The Bundesliga has always been a thermometer of German society, comments Nicole Selmer, editor-in-chief of the trade journal Ballesterer. This eagerness to resume competition is an illustration of a general eagerness in Germany to begin deconfinement, especially as the country feels relatively spared from the virus. And then, if football resumes, it’s all good, right? ”

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But this decision is struggling to pass within a German company which, poll after poll, reaffirms its skepticism vis-a-vis a recovery considered precipitated. Was it really necessary to fly to the aid of the German Football League (DFL), in order to relieve all the ceasing business of the club presidents who suddenly presented themselves in the media as managers of SMEs on the verge of bankruptcy? The affected mines of the director of the DFL and the boss of Borussia Dortmund, claiming to be able to get back to work quickly, were deemed a bit indecent in a country where partial unemployment has been requested for more than 10 million workers. “Let us think of those who are most affected by this crisis. How are the champions going to be able to pay for their gold watches after they’ve been screwed up by multiple handwashes? ” ironic a satirical program on the public channel NDR, parodying a humanitarian spot with this title: “A heart for football: save the DFL”.

Apart from the Bundesliga, which should recover around 300 million euros from broadcasters, who is delighted with this recovery? Those whom Merkel’s announcement was supposed to satisfy, supporters, say they are very wary. “I don’t know a person who is happy with the recovery. When I heard Merkel announce it, I couldn’t believe my ears, says Inge, supporter of Werder Bremen. The DFL takes us what really matters, the social dimension of football, making matches a caricature. They tell us that we don’t count. Finally, with these spectatorless games, they finally admit what we, the fan groups, have been saying for several years: that they are only there to sell a product. “ David SV supporter of Hamburg speaks of “Sick system” : “We supporters are no longer worth anything to them. Only viewers are now the relevant source of revenue. ”

Economic challenge in the Ruhr area

Many criticize the principle of recovery, but also the way it is practiced. Not only did nobody ask the players for their opinion, but the quarantine policy was not consistent between the teams. When three FC Cologne players test positive, they are quarantined alone; when two players from the Dresden Dynamo test positive, the whole team is. “This situation leads to a total distortion of competition”, says Nicole, supporter of FC Sankt Pauli (Hamburg) who describes herself as “Graphic designer by profession, anti-fascist by conviction and football fan”. She has no desire to watch her club’s game on Sunday against FC Nuremberg. Finally, not on a toll chain. “Given the situation, supporters should not be forced to subscribe to pay TV. For my part, I will probably listen to it on the radio at home, with my family. “

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Those who are about to turn on the television are confused but resigned. Patrick is a supporter of FC Schalke 04, which plays this Saturday against its great rival, Borussia Dortmund. Fan of this club from the Ruhr mining tradition since “That[il peut] think clearly “, he accepts the idea of “Ghost matches” only “so that [son] club can survive. Schalke is not just a club. Behind it is a whole city, many jobs. ” Among the supporters of Schalke, a club established in a particularly deprived postindustrial region – the unemployment rate reached 13.4% in Gelsenkirchen, compared to 5.8% of the national average -, the economic argument is working full. “Of course my heart is bleeding at the thought of not knowing when I will see the friends again, or when I will be able to take them in my arms to celebrate a goal, explains Bianca, who has discounted her subscription to the Schalke north turn. But I am happy for everyone who can keep their job. And even if this derby will not be a normal derby, I’m really looking forward to Saturday. “ “The very existence of the clubs, and therefore the jobs associated with them, is at stake. I’m not talking about champions, but people who work behind the scenes and have to feed their families. “ argues Florian, supporter of Schalke since “Age 3”. Many feel that watching the games will help their club survive. And as the formula David, the fan of Hamburg SV: “Without the resumption of the season, only behemoths like Bayern, Dortmund or RB Leipzig will survive. Many clubs will be in deep debt or will not survive, and the gap between large and small will widen further. ”

“Silent hum”

The fact remains that discontent is more and more visible among supporters. This week, in an open letter, around 370 groups from 150 clubs across Europe called on the national leagues not to resume the championship. For Mark, who supports FC Schalke 04, this letter is an important signal sent by the ultras, who oppose “To the marketing of football for years”.

The conflict between supporters and the German League is not new: in March, a crisis shook the environment, just before the end of the competition. This is the Dietmar Hopp affair, wealthy boss of the Hoffenheim club and overwhelming symbol of the king money with his club which has long marinated in 6e division before going up close to the greats of the Bundesliga thanks to the billionaire’s bags of tickets. Hopp insulting banners have led to exemplary sanctions against ultras. The complex case has mostly sparked a national discussion on the relationship between football, money and the public, a discussion that continues today.

For supporters of anti-fascist clubs, such as Werder Bremen or FC Sankt Pauli, there is no question of associating with certain signatories from the pan-European platform. “I agree with this text, but not with certain fascist supporter groups who signed it”, said Inge. Helen, a SC Freiburg fan since childhood, mentioned another text, signed by 22 German supporter organizations and expressing the same reluctance. “We can only reluctantly accept the continuation of the season as a first aid measure for the long-term revival of football”, she comments, citing the need “A paradigm shift”.

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But the weekend is here, the matches are held. What to do ? “I would like not to watch them, but I’m too addicted, I think”, sighs Inge. Saturday afternoon, Mark will support Schalke in front of his television in the company of a friend, with a curry wurst and a very fresh Pils, in memory of those days when he found his comrades at Charly, the local pub, to discuss stakes of the match by greeting each other with a “Glück auf”, expression meaning “good luck”, but above all the traditional salvation of minors. Nicole, the supporter of FC Sankt Pauli, is about to listen to the match on the radio instead of watching it. She who lives right next to the stadium remembers with melancholy the “Silent buzz that slowly turns into too much background noise when more and more people pass through my neighborhood on their way to the stadium”. And then, later, “The expectations, the tingling in the stomach and, of course, the club anthem, Das Herz von Sankt PauliAll these lost sensations that make a match, these supporters all say, “It’s much more than ninety minutes of play.”

Johanna Luyssen Correspondent in Berlin

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US heading for $ 3.7 trillion budget deficit

View of the U.S. Congress

According to the Budget Office of the Congress (CBO), the US deficit will increase to $ 3.7 trillion.

(Photo: AP)

Washington The US budget deficit will rise to a record $ 3.7 trillion this year, nearly quadrupling, according to independent Congress experts. The reason is the consequences of the coronavirus pandemic on the economy and the massive aid programs of the government, as announced by the Budget Office of the Congress (CBO) on Friday.

The US economic output (GDP) is expected to shrink by about twelve percent in the second quarter, which corresponds to a decrease of 40 percent over the year.

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