Source: Taiwan Economic Daily News
The U.S. White House and Republican councilors were in a deadlock when the issue of raising the upper limit of debt raising. President Bayeng negotiated with Congress leaders on the 9th, but both sides did not refund;It is getting more and more serious, which will inevitably have a significant impact on global economic recovery and financial stability.
The US government's finances are not educated. From a long time ago, debt has been raised, and the average debt is increased by $ 1 trillion (1.32 trillion yuan) per year.The problem is that the problem is that the United States cannot issue non -restricted Issuance Treasury bonds. There is a legal upper limit for issuance of debt issuance. It must be increased by Congress legislation. It is currently $ 31.4 trillion.
The Minister of Finance Yellen has been on the verge of debt on the United States, and repeatedly warned that if Congress does not stimulate the upper limit of the high federal debt, it will trigger the constitutional crisis.Ens also warned that if the debt limit cannot be increased, China and Russia will operate this issue.
According to the official letter sent by Yellen to Congress, the Ministry of Finance uses special accounting methods to allow federal debt to not exceed the upper limit. It will be difficult to continue early in early June. The US treasury will have no cash payment as soon as June 5.
Republican House of Representatives will vote for the upper limit of debt in the next few weeks. The bill requires the federal government to freeze public health, education, science and labor benefits related to the previous year. The next year will reduce US $ 130 billionexpenditure.The Biden government demands that the debt limit is increased without premise.McCarthy, Speaker of the House of Opposition of the opposition, warned that Biden rejected the Republican party's position and raised the upper limit of the debt -lifted bill unable to pass the House of Representatives.
This is actually an old political issue. Since 1960, the United States has experienced 78 debt upper limit disputes. Each Congress will finally increase the debt limit."In the dilemma, the two sides finally took a step back to compromise and became a farce.
Politics is to focus on strength. When the opposition party is united and strong, it will force the government to sit down and negotiate carefully. However, the Republican Party is now in disadvantage.Four seats, in other words, several parliamentarians opposed the Republican Party's plan to touch the reefs. In addition, McCarthy's prestige is not enough. The hills of the House of Representatives have their own plans, not to mention that this plan passes the opportunity to pass the opportunity controlled by the Democratic Party through the House of Representatives and the Democratic Party -controlled courtyard.In the end, there is a presidential veto that will let the bill return to the Congress to start again.
In the general solution of Lin Lin, the most ridiculous is the idea of the "Platinum Coin"; the current law of the United States has strict limitations for the face value of banknotes and other metal coins, and the face value of Platinum coins is not limited.The US Ministry of Finance allows the platinum coin with any facial value, and the specific face value is completely "freely tailored" by the Minister of Finance.
The US Treasury Department can use a very low cost to make a platinum coin, and then specify that the coin's face value is $ 1 trillion, and you can get 1 trillion dollars from the Federal Reserve to deposit in the Fed.In this way, the US Treasury's account will appear 1 trillion dollars out of thin air to repay government bonds to bypass the debt crisis.This is a debt -based approach. From the result, it is no different from the debt default, but another form of lingering, but such a ridiculous idea, as one of the filing, was seriously taken by Biden and the staff.discuss.
In fact, the U.S. government's excessive expenditure and the huge debt of out of control are the real problem, but not to review the solution, but put forward such ridiculous proposals, coupled with the U.S. political deadlock that no one can solve. NowEveryone is more and more worried about the US debt letter.
In fact, US Treasury bonds are not like the past. They are snapped up. Mainland China has reduced its holdings of US $ 173.2 billion last year. Compared with the highest 2013, the scale of U.S. debt has shrunk by 450 billion.As another important holder of the US debt, Japan also reduced its holdings of 220 billion US debt last year.
If the United States really can't pay the expired national debt, it may detonate the crisis of default reverse.Once a large number of bonds in the United States, a large number of multinational banks and US debts on the hands of the central bank must be recorded or even sold. Global financial panic will be worse than the 2008 global financial disaster.
