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U.S. debt to reach 100% of GDP in 2021

The federal budget deficit will reach $3.3 trillion in the fiscal year ending this month — more than triple the 2019 shortfall, the nonpartisan Congressional Budget Office (CBO) projected on Wednesday.

Why it matters: That would be 16% of GDP, the largest amount since the end of World War II in 1945. The national debt is projected to exceed 100% of GDP in 2021 and rise to 107% in 2023 — "the highest in the nation's history," the CBO notes.


Driving the news: The CBO attributed the rise mostly to the economic disruption caused by the coronavirus pandemic "and the enactment of legislation in response."

Our thought bubble, via Axios' Felix Salmon: The U.S. government can borrow at less than the rate of inflation, which is a sign from the markets that they’re encouraging higher government spending, higher borrowing and higher debt.

  • The Treasury will always be able to repay that debt, because it borrows in dollars and can print as many of those as it likes.

Of note: The deficit could have been worse. The CBO projected in April that it would jump to $3.7 trillion.

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The Keystone XL pipeline is officially dead

The developer of the Keystone XL oil sands pipeline abandoned the project Wednesday after a decade-plus effort.

Why it matters: TC Energy's decision ends one of the century's highest profile battles over climate change and energy. But the move is unsurprising.

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House Republican campaign arm to accept cryptocurrency donations

The Republicans' House campaign arm will begin accepting contributions in cryptocurrency, Axios has learned.

Why it matters: The National Republican Congressional Committee is the first national party committee to solicit crypto donations. That puts it at the forefront of a disruptive financial technology that could test campaign finance rules.

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Trump to sue Facebook's Mark Zuckerberg, Twitter's Jack Dorsey

Former President Donald Trump, who has complained about censorship by social media giants, plans to announce class action lawsuits today against Facebook CEO Mark Zuckerberg and Twitter CEO Jack Dorsey, sources tell Axios.

Why it matters: It's the latest escalation in Trump's years-long battle with Twitter and Facebook over free speech and censorship. Trump is completely banned from Twitter and is banned from Facebook for another two years.

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New York City E-Race Grand Prix shows potential of electric vehicles

BMW's Maximilian Günther and Jaguar's Sam Bird captured the checkered flags at the thrilling New York City E-Prix racing doubleheader in Brooklyn over the weekend. But the real winners, race organizers hope, are electric vehicles themselves.

Why it matters: ABB FIA Formula E's all-electric street racing series, held in some of the world's most iconic cities, is meant to showcase EV technology in the very places electric cars are likely to have the biggest impact.

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