The $3 trillion deficit between October and August, worsened by coronavirus relief spending, more than doubles the previous all-time high shortfall of $1.37 trillion set in 2009.
The U.S. Treasury Department on Friday said the budget deficit soared to a record high of $3 trillion through the first 11 months of this financial year. The announcement came just days after China indicated it may dump American treasuries if tensions between Washington and Beijing continued to escalate.
The deficit between October and August, worsened by coronavirus relief spending, more than doubles the previous all-time high shortfall of $1.37 trillion set in 2009. During that 11-month period, the federal government sunk large sums to generate movement out of the 2008 financial crisis and ensuing Great Recession.
More than $6 trillion has been spent this financial year—nearly $3 trillion on COVID relief—a figure double the $3 trillion generated from taxes. The imbalance is enormous compared to last year's $984 billion. And with the budget year ending on September 30, the Congressional Budget Office forecasts that the deficit will increase to $3.3 trillion. With that, America's debt will likely soon eclipse $26 trillion.China recently announced it would dump American debt.
Shaun Breslin, a professor of politics and international studies at the University of Warwick in the U.K., toldthat such a move"would have so many detrimental impacts on China as well, not least massively reducing the value of anything that they had left."
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Tesla plans to export China-made Model 3s to Asia and Europe, say sourcesTesla is planning to export Model 3 vehicles made in China to Asian and European markets, two sources familiar with the matter told Reuters on Friday.
Weiterlesen »
China, India agree to de-escalate tension on Himalayan borderThe agreement comes after South Asia's nuclear-armed neighbours accused each other this week of firing shots across the flashpoint border for the first time in 45 years, threatening a full-scale military conflict.
Weiterlesen »
Microsoft warns of 'unsuccessful attacks' on campaigns from Russian, China, IranThe warning from the tech giant targets Russia, China and Iran — the same three foreign actors identified by American intelligence officials as seeking to undermine faith in the upcoming election.
Weiterlesen »
‘Mulan’: Disney CFO Christine McCarthy Concedes China Uproar “Has Generated A Lot Of Issues For Us”Disney CFO Christine McCarthy addressed the controversy over Mulan, which critics accuse of indirectly favoring the oppression of Uighur Muslims in China, noting the uproar has created “a lot…
Weiterlesen »
China Film Output Hit by Coronavirus ShutdownThough China was among the first in the world to restart film shoots in the wake of COVID-19, the number of projects going into production has been drastically reduced by the pandemic and its accom…
Weiterlesen »
Are China and the US destined for a ‘cold war’ with limits?With Chinese entities holding $1.6 trillion in US securities and US ones holding tens of billions of dollars worth of investments in China, it’s unlikely the two powers will come to blows any time soon
Weiterlesen »