The United States says three or four of the debt of other countries, but ignores its own country's debt risk.On June 3, 2023, US President Biden signed a bill on the upper limit of the federal government debt and budget, and the debt limit came into effect until the beginning of 2025. It was the 103rd debt limit of the US government since the end of World War II.
A report issued by the US Treasury on January 2 shows that the scale of US federal government debt reached US $ 34 trillion (approximately S $ 45.7 trillion) for the first time.The International Monetary Fund (IMF) predicts that the US GDP (GDP) will be US $ 2.695 trillion in 2023.That is to say, the scale of US federal debt accounted for nearly 126%of the US GDP, and it was shared by 338 million people across the country, and each person's debt exceeded $ 100,000.
The United States said three or four of the debt of other countries, but ignored the debt risk of its country.Although the United States has legal regulations on the upper limit of debt to reduce the risk of U.S. debt, on June 3, 2023, US President Biden signed a bill on the upper limit of the federal government debt and budget, and the debt limit came into effect to early 2025.It is the 103rd adjustment of debt limit since the end of World War II.
This means that the U.S. government is determined to break through the debt limit, require the US Federal Reserve's banknote printing machine to open a full horsepower, barbaric printing huge US dollars to put on the market, and continue to pay the world for the US debt crisis.
Americans eat spicy and spicy with their debt economy, and their lives are very moisturized.The huge debt also provides strong financial support for American science and technology and military. Therefore, the strength and hegemony of the United States are also accumulated in debt, which is not proud.
All signs show that the US debt economy is a global "parasite" and is using debt to exploit the people of the world.
The U.S. government has no central bank and cannot issue currency directly. In order to solve the problem of empty deficiency of the Treasury, only a large number of government bonds were issued through Parliament's first willingness.Later, the Fed printed machine printed machines that were essentially used as a stand -in US Central Bank's stand -in, purchased a large number of government bonds from the government, controlled the yield of government bonds, maintained long -term interest rates at a lower level, and promoted corporate equipment investment and individual mortgage purchases.Promote the flow of financial institutions and personal funds to the stock market and corporate bond market, drive the prosperity of the capital market, form a wealth effect, and promote residents' consumption.
Then, the United States seduce emerging market countries to invest in U.S. Treasury bonds in large quantities, mainly through trade deficit to release liquidity to the international community, thereby raising the price of commodity commodities and splashing inflation to the world.The Fed will look at opportunities, lowering the price of the US dollar, and helping the US government on debt through the depreciation of the US dollar, which is equivalent to "cutting wool" and plundering global wealth into its own pocket.Every time the US dollar depreciates, the United States will get hundreds of millions of dollars of wealth.
Former Federal Reserve's former chairman Greens Pan had a precise statement about the US economy in 2004. He said that the US economy has been a debt economy model since 1973.
The so -called debt economy model means that the United States does not need to support general industrial enterprises to support the national economy. Except for mass consumer goods and core industrial equipment and military products from the United States, other goods are imported from the international market.This means that the US dollar is constantly exported to the world.
The trade surplus country "worships" the US dollar through the establishment of a foreign exchange reserve.However, in order to increase the quality of the foreign exchange, the trade surplus country purchases a large number of US Treasury bonds with the US dollar in their hands and seek benefits.In this way, the US dollar earned by the trade surplus returned to the United States, "financing" for the US debt economic model, the US dollar returned to the United States, lending to the people to spend a gorgeous cycle.In this way, it will form a sustainable debt economy model, and Americans will always have endless money.
The reason why the United States can implement the debt economy is because of the special international status of the US dollar.Since the establishment of the Bretton Forest system in 1944, the US dollar's international financial hegemon position has never been shaken since the US dollar as the main international reserve currency.Global currency must be stared at the US dollar. As soon as it is damaged, the fate of international finance is tied to the US dollar carriage, and the United States takes the opportunity to dominate the world economy.As soon as the United States coughs, it has a cold in the world.
U.S. Treasury bonds rely on the US dollar's dominant status to be widely issued around the world and penetrate everywhere.The special status of the US dollar in international settlement allows other countries to have too much US debt.After the US financial crisis, the creditor country cannot let the United States go bankrupt and buy U.S. Treasury bonds in a hard scalp, otherwise certain debt countries themselves will go bankrupt.In a sense, US Treasury bonds have been abducted by the global economy.
After the financial crisis in 2008, the US government frequently hair increase currency led to excess liquidity in the entire world. The global market complained, but there was no sight of the people in the United States.In the US daily necessities consumer market, ordinary people rarely feel the pressure on prices.
Of course, in the financial crisis, the US dollar was once "back" and was ridiculed as "vulnerable dollars". The euro took the opportunity to challenge the dominant position of the US dollar, but the debt crisis that encountered unexpectedly made the euro 0 death to die., Self -care, how can there be strength to fight with the dollar?The Japanese economy was originally downturn, and encountered a crisis of nuclear leaks, which made the economy worsening.Although the RMB has entered the pace of internationalization, it is not the same level as the US dollar, and it is temporarily unable to fully assume the responsibility of international currency circulation.
US dollar is the world's currency and is the boss of the international financial family. A large number of dollars circulate in the international market. Especially in emerging market countries, they are racing to buy U.S. Treasury bonds and make money with US dollar debts."" ".In this way, all US dollar holders around the world have the same "US dollar dream of wealth", which jointly shared the cost of the Federal Reserve's income currency, and also reduced the risk of inflation caused by the US dollar to cause inflation, and diluted debts.
However, the US debt grows brutal, and blatantly exploites people around the world through intentional back debts. One day, I will move their stones to smash their feet.
Robert Hockett, a professor at Cornell University in the United States, believes that US debt mines will bring four serious consequences to the United States, that is, the United States will lose the credit rating of sovereign debt, leading to the depreciation of the US dollar caused domestic inflation, and domestic inflation.The government has no money to support overseas wars and fiscal councils because of high debt costs.
By then, the United States is completely failed to trust in various countries in the world, debt is blocked, and no one in China, Japan, and other people will be "grievances". The US dollar hegemony and military hegemony will disappear, and then lose the throne of the world's first power.
The author is the writer of China Financial Media column, chief analyst of Jingsu Media