U.S. Budget Deficit Hits Record, Days After China Says It May Dump American Debt

[beijingwalker]

U.S. Budget Deficit Hits Record, Days After China Says It May Dump American Debt
9/11/20 AT 11:56 PM EDT

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.

Budget Deficit Hits Record Days After China Says It May Dump U.S. Debt

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.

www.newsweek.com

 

[Nasr]

Good, it's time to put the sinking ship, which america, out of its misery.

 

[vi-va]

 

[vi-va]

 

[Type59]

Under Bill Clinton country had a budget surplus, now successive administrations have made life for future generations difficult. Today debt build up wont be an issue but in 30 years time its gonna be a different issue.

Future retirees will suffer from benefit cuts. Former administration figures will long be deceased, hence not bothered about future generations.

 

[cloud4000]

Who cares if China dumps US debt. For one thing, it means that they are buyers of this debt, willing to assume the risk and benefit of owning such debts. Second, if there are no buyers, as long as US services it’s debt, China still makes a handsome profit in terms of interest payments. Lastly, US debt is a vehicle, like gold, of safety in uncertain times.

Regardless, US will not be impacted if China dumps US debt.

 

[Type59]

Who cares if China dumps US debt. For one thing, it means that they are buyers of this debt, willing to assume the risk and benefit of owning such debts. Second, if there are no buyers, as long as US services it’s debt, China still makes a handsome profit in terms of interest payments. Lastly, US debt is a vehicle, like gold, of safety in uncertain times.

Regardless, US will not be impacted if China dumps US debt.

Like nixon said Indians like to suck up. Plus getting advice from people who think banning large domination notes is a "masterstroke" is a no no.

 

[cloud4000]

Like nixon said Indians like to suck up. Plus getting advice from people who think banning large domination notes is a "masterstroke" is a no no.

What does India have to do with anything I wrote? Alas, if you want to see what a suck-up looks like, I suggest you look in the mirror.

 

[Type59]

What does India have to do with anything I wrote? Alas, if you want to see what a suck-up looks like, I suggest you look in the mirror.

Nah have you seen me defending china. Like every nation it has its flaws. Indians always defending flawed policies, like usa will give you a green card as reward.

 

[Hamartia Antidote]

Plenty of Buyers of U.S. Debt Even as China Sold

When China shed U.S. government bonds in December, a number of foreign central banks stepped up to the plate and helped absorb the sales.

blogs.wsj.com

Plenty of Buyers of U.S. Debt Even as China Sold

 

[Type59]

Plenty of Buyers of U.S. Debt Even as China Sold

When China shed U.S. government bonds in December, a number of foreign central banks stepped up to the plate and helped absorb the sales.

blogs.wsj.com

Plenty of Buyers of U.S. Debt Even as China Sold

Forget china for a second. US debt is not a problem now but what about in 30 years. Current politicians in USA do not care about future generations. They only care about enriching own family at expense of the masses.

I said it to some Americans I know, but seemed to think I had an agenda against united states.

If my predictions are correct, future governments will have to raise taxes and cut expenditure.

 

[Nasr]

China is very fortunate that there are buyers for american debt. Those buyers are either smart (to buy and resell) or incredibly stupid if they think they can hold on to that debt and it doesn't sink them totally. Anyone with even an ounce of intellect knows that debt does not equal money, and fool who buys debt in the hopes of making money, is the biggest idiot on this planet. America is a sinking ship, it's mounting debt and fattened military spending only indicates to one thing, global war. One that would make the first two world wars look like a children's playground.

 

[Prince Kassad]

The China debt thing is such clickbait bullshit conspiracy theory title, China’s owns like 5% of US debt about the same as Japan. The vast majority of the US dept like 70% is owned by the US.