*A congressional source reveals The U.S. will reach a record $1.6 trillion budget deficit this year.

The White House’s Office of Management and Budget predicts that the deficit for the current fiscal year, ending September 30, will exceed the record $1.4 trillion mark set last year, which is a level not seen in the U.S. since World War II.

The Capitol Hill insider says the deficits are expected to drop to $700 billion by the end of fiscal year 2013 and then gradually increase to $1 trillion by the end of 2020, according to the budget proposal to be released Monday.

But the deficit and Washington gridlock is more than just a political problem. The Daily Beast’s Jeffrey E. Garten reports on the dollar’s coming decline-and the terrible ripple effects ahead.

Read the full report HERE.