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As the world's largest currency, the US dollar has a supreme status, and many countries around the world have begun to reserve US dollars in order to better develop their domestic economies, but as time goes by, more and more countries have begun to de-dollarize.
Take the mainland as an example, it once reserved as much as 1.3 trillion US dollars of United States Treasury bonds, which played a very important role in stabilizing the RMB exchange rate at that time, but now the mainland has sold US bonds on a large scale.
The first thing to say is external reasons, as we all know United States as a world power, has always had a very strong economy, so his sovereign credit rating is very high, AAA level, but now the United States credit rating has dropped to AA+, what is happening?
The original huge debt weighed on the United States, and now the United States is about to go bankrupt, data shows that in 1982, United States' debt exceeded $1 trillion, and by 2024, the debt has exceeded $35 trillion.
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Even if these high debts fall on the heads of every United States and masses, it is a big expense, and some of them are not even able to bear them, and if they want United States to pay off these debts now, it is basically a fool's dream, and even the interest to be paid every year, I think it is enough to choke.
So what is the reason why United States' debt has changed so much in just a few decades? Speaking of which, one word has to be mentioned is the debt ceiling, which refers to the maximum limit of the United States Treasury to issue United States Treasury bonds.
Theoretically, as long as this limit is reached, the United States government will shut down, so many friends may joke that the United States government is really powerful, so many dollars of debt has not yet reached the peak.
In fact, the debt ceiling should have been reached a long time ago, and the president at that time was a member of the Democratic Party, and for his own benefit, he continued to push for an increase in the ceiling debt, causing the door of the government to toss back and forth between closing and closing, and gradually the debt of the United States increased.
Data shows that in 2023, the United States's fiscal deficit is 1.7 trillion US dollars, and in order to solve this problem, United States has to issue government bonds on a large scale United States United States.
In this way, United States will get a large amount of money in a short period of time, which can solve the problems that United States are currently facing, but there is also a disadvantage that United States has to pay a lot of interest to those countries that buy US bonds every year, and what to do if there is no money, United States can only increase taxes to ensure that there is enough money.
Not only increase the interest rate of the people's borrowing, but also increase the tariff on foreign goods, so that the United States people and companies can be miserable, on the one hand, they have to bear the inflation caused by rising prices, and on the other hand, they have to consider whether the high interest rate will not be able to bear it.
United States In short, raising the limit is actually unfavorable for the United States people and enterprises, and it is likely to increase the anti-American sentiment of the United States people.
In fact, if you want to develop well, you still have to engage in down-to-earth construction, only when the real economy is strong can it become a country to stand in the forest of the world, if you blindly play the financial game like United States, then the final outcome will inevitably be like United States, bear a lot of debt.
Then some people will definitely ask, United States executives just let the Democratic Party come like this, that is not as the Democratic Party's sworn enemy, the Republican Party has been secretly competing with the Democratic Party, but everyone knows that the fight between the two parties is for profit, so when the Republican Party promises that the Democratic Party has enough interests, the Republican Party will laugh and agree to the debt ceiling application.
There are no worries, the Democratic Party has begun to actively plan internally, first of all, it is to work hard for the interests of the Democratic Party, in order to gain more support from the people, Biden has made the economic data very perfect, but looking at the above figures, you will feel that United States has been developing very strongly recently, but after careful consideration, it is found that there are many loopholes.
At the same time, there are serious problems within the current United States, due to the Russian-Ukrainian war and the Palestinian-Israeli conflict that lasts for a long time, United States has to invest a lot of military expenditures every year, which leads to the United States's economic expenditure is increasing day by day, and the current United States debt is so huge that United States is about to be unbearable.
Next, let's look at the internal reasons, the relationship between the mainland and United States was not bad before, but with Biden taking office, the relationship between the mainland and United States can be said to be more and more stiff, at this time storing too much US debt is very unfavorable to the mainland, if United States sanctions against the mainland from the aspect of US debt, the mainland will have no choice.
Second, the mainland has been promoting the internationalization of the renminbi for a long time, and too many U.S. bonds can only hinder the development of the renminbi, so selling U.S. bonds can not only promote the internationalization process but also protect national security.
In fact United States the situation we are facing now is a great thing for the mainland, and it is tantamount to a fool's dream that a big country like United States wants to rely solely on war to eliminate it, but if it can be disintegrated from within, it is a very good way, just like the Soviet Union at the beginning.
Because of the internal strife, the Soviet Union fell apart, and if the current United States cannot handle its internal problems well, then it may one day face the end of the Soviet Union.
Secondly, in addition to the mainland's active de-dollarization, some countries are also de-dollarizing, take Russia as an example, since being kicked out of the SWIFT international trade settlement system by the United States, the Russia has been selling US bonds continuously.
United States does not allow Russia to trade in dollars, so Russia began to use a large number of yuan, which played a good role in promoting the mainland yuan.
The current United States is no longer the United States of World War II, when it had a strong economic power and could exploit countries around the world unscrupulously, but now it is different, with the change of the world pattern, the decline of United States' national strength, plus many developing countries have become stronger.
United States wants to foreign exploitation pressure is increasing, gradually lost absolute control of global finance, without control, United States' debt will naturally rise, next United States should solve the debt problem, we do not know, but one thing we know very well, these debts are not solved then the United States is not far from the day of bankruptcy.
What do you think about the size of the U.S. debt exceeding 35 trillion? Welcome to discuss in the comment area!
Source: Investigative journalism – "The most predictable crisis" – US debt totals more than $35 trillion and continues to rise http://www.news.cn/world/20240730/6134572848254260b69d3f86af8fdcea/c.html