The American economy depends on debt.
But there is one country, and he is different. His economic development can be said to depend on debt. This country is America.
After 1994, the status of the US dollar in the international community has greatly increased. In order to consolidate the status of the dollar, the United States can be said to be unscrupulous. This move has made the US dollar one of the major currencies in the world. And the dollar has become an indispensable existence in the trade between many countries. Because trade needs the help of dollars. Therefore, many countries will choose to hold a large number of assets in the form of dollars. Because it can help them to trade better in the future international trade.
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At this time, the United States continued to issue bonds, because its dollar's position in the international arena has improved, and it has developed its domestic economy by issuing bonds. Similarly, when the domestic economy of the United States encounters major difficulties, the US authorities will also choose to issue bonds to deal with the crisis. It can be said that this method is very effective in the short term. But if you do this for a long time, you will always get burned and hurt your body.
▲ USA
According to statistics, the current debt of the United States is almost 30 trillion. Such a huge amount, interest alone is a very considerable sum of money. In addition, the total national reserve of the United States is only $500 billion. Economically speaking, this country needs a huge and stable dollar reserve. Only in this way can we get greater help in economic exchanges with other countries. At this time, the debt of the United States has 30 trillion national reserves, but only 500 billion US dollars. It can be said that the debt crisis is a matter of time.
The crisis behind American debt
Starting from the second half of 2020. The sequelae of large-scale bond issuance in the United States are gradually emerging. There are many dangers in the American economy. There are many professionals speculating now. The US stock market may stagnate from the current upward trend, as it did in September. At the same time, the American national market is also riddled with holes.
▲ American debt
As American debt snowballs, so does the risk behind it. Although the American authorities have begun to try to reduce the increase of American debt through various means, it obviously has no effect. The debt of the United States has not decreased, but is gradually increasing. The United States will issue 50~ 100-year treasury bonds, and put forward the US 100-year treasury bond plan.
The Fed has cleared the way many times.
In March this year, the US Federal Reserve made a plan to buy unlimited US debt. Then put forward a $2 trillion rescue plan. It can be said that due to market liquidity, the panic of American citizens has been greatly alleviated. It can be said that this is a rescue measure after the US Federal Reserve cut interest rates for the second time.
For the Fed, it needs to stabilize the US Treasury bond market. Because he needs to control such a huge amount of us treasury bonds. "But there is a great possibility that the Fed will not continue to buy US Treasury bonds and implement a large number of relaxation policies." An analyst commented on the US Federal Reserve.
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Statistics show that after March, the United States has purchased US$ 3 trillion worth of national debt, setting a historical record. At the same time, the negative balance sheet of the United States has successfully exceeded $7 trillion, which has also set a new record.
The unification of these data illustrates a phenomenon. The U.S. Federal Reserve has invested a lot of money and energy to ease the expenditure of U.S. national debt, and has suffered tremendous pressure.
At that time, it also indicated that the US Federal Reserve might default in its capacity. Although the fed has been doing this before. But when such a huge debt appears in front of the US Federal Reserve, there is almost nothing the US Federal Reserve can do.
Then credit loans in the United States are rapidly declining, and the American economy is also declining. Today, the most indebted countries in the world have a place in the United States, which requires many countries to transport their gold reserves back. But the United States does not let countries see gold, which is undoubtedly a fire. Faced with this situation, 34 countries, including China, sold American debt, which promoted the dollarization of the world. They can no longer stand the development of the American economic system.
According to relevant surveys, these 34 countries have begun to deal with related matters, regarding the sale of US Treasury bonds. Besides China, other countries are secretly preparing to establish a RMB reserve system.
Many foreign investors reduced their holdings of American bonds in 2006 to guard against various possible risks in the United States. Moreover, in recent years, the attractiveness of US Treasury bonds to the outside world has not only decreased, but also the income has decreased. For investors, the rising income is the goal they want to pursue. Actually, about 20 18. Central banks in many countries are reducing their holdings of American bonds. According to incomplete statistics, in the past 20 months, central banks around the world have sold more than 800 billion US dollars of US debt.
According to foreign reports, the national debt of the United States has fallen to the lowest level in the last three years. China, on the other hand, reduced its holdings of US Treasury bonds for four consecutive months, which was about 1 billion US dollars. In the past year, China sold nearly $37 billion to the poor. And some international experts said that China will continue to sell with high probability.
abstract
So, who will pay for American debt? In recent years, Japan has set off a wave of buying American bonds. It shows that Japan's holdings of US Treasury bonds have been increasing in recent years. So far, it is about $654.38 +0.3 trillion. Only in the middle of 2020. Japan once held a large-scale purchase of US Treasury bonds. Japan used almost all its foreign exchange reserves to buy US Treasury bonds.