The US Treasury Department said on Friday that the budget deficit had reached a record tr 3 trillion in the first 11 months of this fiscal year. The announcement comes just days after China signaled it could sink American treasuries if tensions between Washington and Beijing continue to rise through the announcement.
Losses between October and August Gust were exacerbated by coronavirus relief spending, more than double the previous shortfall, which was 2009 1.37 trillion in 2009. During that 11-month period, the federal government sank large sums of money to generate the 2008 movement. The financial crisis and the next great recession.
More than ટ્ર 3 trillion has been spent this fiscal year – about tr 3 trillion in covid relief – a figure of 3 3 trillion generated from taxes. The imbalance is much higher than last year’s 98 4,984 billion. And as the budget year ends on September 30, the Congressional Budget Office predicts that the deficit will widen to 3. 3.3 trillion. With that, America’s debt will probably soon reach 26 26 trillion.
To make matters worse, China has called on its U.S. Has threatened to throw out the treasuries.
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Dilok Kleistaporn / Getty
Beijing has given its U.S. The diversification of holdings in treasury securities began in 2013 – topping 1.32 trillion. Now at 1 1 trillion, it still ranks second in the U.S. behind Japan’s approximately 2 1.2 trillion.
Last week, this Global TimesThe official publication of the Chinese Communist Party (CCP), a newspaper owned by the People’s Daily – Sage Beijing could reduce its holdings by about 800 800 billion as the US “federal deficit increases default risks and the Trump administration continues its vague attacks on China.” “
In economists Global Times The article suggested that if Washington imposes more sanctions on Beijing or Trump raises rhetoric against the Asian nation, which he blamed for the epidemic.
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The rapid issuance of 200 billion US securities will boost global financial markets and raise domestic interest rates. But, the Chinese state media often makes threatening threats indicating that the CCP is not binding.
Said Shawn Breslin, professor of politics and international studies at the University of Warwick in the UK Newsweek That such a move would “have many detrimental effects on China as well, not diminish the value of what they have left behind.”
Newsweek U.S. to comment. Reached the Treasury Department.
US Central Bank Chairman Jerome Powell told Washington in June that while spending this year is certainly “inadvisable”, we should not focus on reducing the deficit in light of the current epidemic.
Congressmen are still embroiled in a second stimulus package that will give Americans much-needed direct payments, higher unemployment benefits and support for small businesses. Republicans proposed a modest $ 500 billion “skinny” bill this week, which was quickly blocked by Democrats demanding more trillions.
