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US Budget Deficit Hits All-Time High of $864 Billion in June

Chinese Officials Sanctioned by US for Xinjiang Abuses Have History of Human Rights Crimes

Persecuting Uyghur Muslims in China’s far-western region of Xinjiang is but one of a slew of human rights abuses by the four Chinese officials who were recently sanctioned by the U.S. administration. The sanctions, imposed under the Global Magnitsky Act on July 9, barred four Chinese officials, as well as their immediate family, from entering the United States. The sanctions will also block U.S. properties that are under the individuals’ names and prohibit U.S. transactions with them, the U.S. treasury department said. In Xinjiang, home to roughly 11 million Uyghurs, at least 1 million Uyghurs and other ethnic Muslim minorities have been detained within internment camps and subject to torture and political indoctrination in an effort to coerce them into giving up their faith. But such persecution is not confined…

US Budget Deficit Hits All-Time High of $864 Billion in June

WASHINGTON鈥擳he federal government incurred the biggest monthly budget deficit in history in June as spending on programs to combat the coronavirus recession exploded while millions of job losses cut into tax revenues.

The Treasury Department reported Monday that the deficit hit $864 billion last month, an amount of red ink that surpasses most annual deficits in the nation’s history and is above the previous monthly deficit record of $738 billion in April. That amount was also tied to the trillions of dollars Congress has provided to cushion the impact of the widespread shutdowns that occurred in an effort to limit the spread of the viral pandemic.

For the first nine months of this budget year, which began Oct. 1, the deficit totals $2.74 trillion, also a record for that period. That puts the country well on the way to hitting the $3.7 trillion deficit for the whole year that has been forecast by the Congressional Budget Office.

That total would surpass the previous annual record of $1.4 trillion set in 2009 when the government was spending heavily to lift the country out of the recession caused by the 2008 financial crisis.

The June deficit was driven higher by spending on various government relief programs such as an extra $600 per week in expanded unemployment benefits and a Paycheck Protection Program that provided support to businesses to keep workers on their payrolls.

The report showed that the cost of the Paycheck Protection Program in June was $511 billion. That reflected a charge to the government for all the bank loans made under the program even though the government will not actually have to pay out funds until the banks determine whether the businesses met the criteria for having the loans forgiven. Those requirements include spending at least 60 percent of the loan amount on worker pay with the other 40 percent going to overhead costs such as rent and utilities.

Another reason for the surge in the June deficit was the government鈥檚 decision to delay tax payments this year until July 15. That decision mean that quarterly payments made by individual taxpayers and corporations will not be due until July 15 this year rather than June.

So far this budget year, revenues total $2.26 trillion, down 13.4 percent from the same period last year, while spending totals $5 trillion, up 49.1 percent from a year ago.

The CBO estimate of a $3.7 trillion deficit for this year could go higher depending on the course of the economy. The country fell into a deep recession in February, ending a record long expansion of nearly 11 years. The Trump administration is predicting that the economy will come roaring back in second half of this year but many private forecasters are concerned that a resurgence of virus cases could make consumers too fearful to resume spending, which drives 70 percent of the economy.

Congress which has already approved more than $3 trillion in a series of rescue packages, is scheduled to debate another support effort when it returns from recess on June 20. Democrats are pushing for an extension of the expanded unemployment benefits which will soon run out.

By Martin Crutsinger

Focus News: US Budget Deficit Hits All-Time High of $864 Billion in June

Chinese Regime ‘Lashing Out’ at the World: China Analyst Gordon Chang

“What we’re seeing right now is a China which is lashing out at everybody,” said China analyst Gordon Chang. In addition to its encroachments on Hong Kong and the first fatal border clash with India in 45 years, “you’ve got the boat bumping and other incidents in the South China Sea, East China Sea; the increased tempo of dangerous intercepts of the U.S. Navy in the global commons; the repeated threats to invade Taiwan; all of these hostile words, these disinformation campaigns directed against the United States and others,” Chang said. The Chinese communist regime has become increasingly belligerent globally, and it “believes it can do what it wants,” Chang said, in an interview with The Epoch Times for the “American Thought Leaders” program. “We have to teach China for…