Why the United States can help the people by increasing money printing and issuance of foreign debt is largely because of the status of the US dollar in the world. As the world's common currency, the U.S. dollar is the main currency of many countries' international settlements. This is why the U.S. dollar is called the U.S. dollar. Just like gold, the U.S. dollar exists as a constant and general equivalent that is difficult to depreciate.
It is very common for the U.S. government to raise funds to deal with its own fiscal deficit by issuing foreign debt. Because if the United States needs to repay its debt, it only needs to print a large amount of dollars, and it does not need to be converted into the currency of the creditor country for settlement. Therefore, the resulting inflationary crisis will be passed on to the creditor countries. During the epidemic, the United States increased debt issuance in order to maintain economic growth, make up for the government's financial deficit due to insufficient tax revenue due to the epidemic, and stimulate domestic demand to maintain the economy.
While stimulating the economy, a large amount of money is also printed. To understand the reasons, we first need to understand the concepts of financial management of residents in China and the United States. In China, wages are basically paid monthly, and most people have some savings. But in the United States, the situation is different. Salaries in the United States are paid weekly, and most people have basically no savings. Anyone with $6,000 in his bank card is considered a rich man. Therefore, when the epidemic hit, most people had no source of income due to the government-mandated shutdown. In addition, Americans themselves do not have particularly large savings, so the government prints and distributes money in an extraordinary manner to support the lives of the American people. But this is not a good strategy. It will be effective in a short period of time, but as time goes by, the impact of inflation will become more and more obvious.
The United States’ extraordinary bond issuance is to supplement the government’s financial deficit caused by insufficient tax revenue during the epidemic. At the same time, a large amount of money printing is also to subsidize the financial crisis caused by the shutdown of most people in the United States during the epidemic. The U.S. government's measures are actually to rely on the special currency status of the U.S. dollar to pass the crisis through the world economic crisis during the epidemic.