Reason:
Due to the rise in housing prices in the United States before 2006, many American working-class people took meager wages and borrowed money from banks to buy houses. Then the U.S. government announced the reduction of housing prices, which led to the bankruptcy of a large number of investors, and their wage capacity could not pay bank loans, and finally went bankrupt. As a result, the financial guarantee institutions in the middle suffered great losses and eventually had to go bankrupt. Banks have to digest the debts brought by these loans, so investment banks are also heavily in debt and have to bow to the US Treasury and the Federal Reserve. But the government has its own considerations, and the bank can only declare bankruptcy in the end. A large number of large multinational companies are facing budget deficits because they cannot get bank loans. As a result, the financial crisis broke out, and a large number of international financial institutions and companies related to Wall Street in the United States faced bankruptcy crisis one after another. Because each country's expenditure seriously exceeds its own budget and ability to pay, the financial crisis has spread all over the world.
In the final analysis, it is a strategic issue before the US government. Years of war have made inflation in the United States increasingly serious, but the Fed hopes to eventually curb the rise of CPI by lowering housing prices. This is also an inevitable historical phenomenon. "The day is full, and the full moon is lost." The economy of the United States developed too well before, and then militarism. This is also inevitable.
Under the financial crisis, countries have to reconsider their position in the world, which can not only ensure good cooperation between countries, but also increase contradictions and frictions between countries. In order to support employment and tide over the financial crisis, the U.S. government issued U.S. treasury bonds to countries all over the world, and countries bought U.S. treasury bonds one after another to help the United States successfully tide over the financial crisis. On the other hand, the United States constantly accuses other countries of manipulating exchange rates and slanders other countries for creating this financial crisis; Many countries began to seek a world currency that can really avoid risks, that is, any country will return to a similar gold standard era without the influence of other countries in the world or a certain political and economic time, but this has aroused dissatisfaction in the United States, which believes that the US dollar can still help tide over this financial storm; The imbalance of trade and export between countries leads to large-scale fiscal deficits in some countries, and even leads to national bankruptcy (such as Iceland), or leads to a large-scale strike and career in a country facing financial crisis (such as Greece), while different political systems and monetary policies in different countries lead to some policies that may be beneficial to their own countries and harmful to other countries, thus deepening the contradictions among countries; But in this case, on the other hand, it can encourage countries to deepen cooperation, seek a new international monetary environment, strengthen financial supervision and environmental cooperation, and tide over the difficulties together.
For example, the G-20 summit replaced the original G-8 summit under the financial crisis, which enabled developed and developing countries to continuously strengthen cooperation; On the other hand, for example, the United States suppressed China's monetary policy and forced the RMB to appreciate, as well as a series of special safeguard cases against China, Germany and Brazil.
Now, a new wave of financial crisis has come again. The crisis in the United States seems to have eased a little, but Europe has once again fallen to the bottom. Debt problems of Italy, Spain, Portugal, Greece, Ireland, Cyprus, Belgium and Slovenia. It has been put on the table again, and wars are raging all over the world, and the prospects are not optimistic. Only by strengthening cooperation between countries, returning financial sovereignty to the people, reducing the budgetary expenditures of governments (such as military budgets), effectively curbing inflation, and cooperating with developed countries in more fields to help each other in the same boat can we get through this crisis well.