It is well known that due to our country's excellent credit, government bonds have become so sought after that they are snapped up each year.
Today, we are going to talk about another economic powerhouse in the world - the United States.
By all accounts, the U.S. Treasury bonds should be backed by strong economic credibility, as the world's largest economy should naturally possess such strength and confidence.
However, the reality is not as it seems.
In recent years, the economic credibility of the United States has been on the decline, and there have been recent reports that the Federal Reserve is on the brink of bankruptcy!
As everyone knows, since the end of World War II, the United States has become the world's leading economic power.
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Benefiting from the spoils of war, the U.S. rose to the position of global hegemon after World War II, even introducing a new monetary system.
The world economy used to revolve around the United States, with the U.S. dollar and gold enjoying an equally high status and being freely circulated worldwide.
As such an economic hegemon, if someone suddenly told you that the United States is about to go bankrupt, no one would easily believe it.
But now even the famous American entrepreneur Musk has expressed that, according to the current trend, the United States is accelerating towards bankruptcy!
With black and white evidence in front of you, many people are shocked: Is the United States really going to collapse?!
Recently, after the scale of U.S. Treasury bonds broke through 34 trillion U.S. dollars, it has been like a horse that has lost its reins, completely beyond redemption.
Now this figure has reached an astonishing 35.2 trillion U.S. dollars, completely breaking the limit set by the United States itself.
It is important to remember that government bonds are meant to promote national economic development, to stimulate consumption, and thereby promote the construction of the country's infrastructure to be more perfect.
But now the United States has completely turned this debt into an unbearable burden.
So how strong is this figure?
Even if every American citizen pays off the debt, each person would have to pay more than one hundred thousand U.S. dollars.
Moreover, many American citizens are still waiting for the government to pay them interest, and they are waiting to make money!
Yes, the United States not only has to pay off these debts but also has to pay high interest to those who buy Treasury bonds.
How high is this interest?
Just the interest for this year alone has approached hundreds of millions of U.S. dollars!
This undoubtedly has increased the burden on the U.S. government.
Some people may ask, why won't the United States reduce interest rates when it can't even pay off the principal?
In fact, on the one hand, it is because the United States is blindly confident in its own economic development, believing that even such high interest rates, the United States can still pay off.
On the other hand, as the world's largest economy, the United States has to maintain its international economic status, which must have an impact on it.
And the current state of the United States can only be described as barely hanging on.
According to the forecast of the U.S. Congress, the fiscal deficit of the U.S. government this year is expected to reach 1.9 trillion U.S. dollars.
That is to say, the U.S. government is expected to have much less income than expenditure this year.
If this continues, let alone not having any money to pay the interest, even the principal can't be paid off.
What to do if it can't be paid off?
Of course, you can only borrow money.
Just take the borrowed money to repay the money, and then take the borrowed money to repay another borrowed money...
In this way, layer upon layer of debt has formed the current fiscal crisis of the United States, as if falling into a bottomless pit.
Subsequently, a more important crisis is quietly approaching: It's not terrible to owe money and not pay, but the collapse of trust is the most terrible!
You must know that the United States, as a country that has been sitting on the throne of the world's largest economy since World War II, the credibility of the U.S. dollar is almost at the same level as gold.
What is credibility?
In the simplest terms, if the end of the world is coming and you need to hoard money.
Most people would definitely choose to exchange paper money for gold first, because gold does not devalue, is not easy to damage, and if you can only exchange paper money?
Then many people might exchange for U.S. dollars, because the U.S. dollar has the most extensive credibility.
Even in another country, others will recognize your U.S. dollars can be exchanged for local currency.
But facing the current situation of not repaying the debt, the credit system of the United States and the U.S. dollar is now tottering, and there is a danger of collapse at any time.
After all, who would be willing to believe a deadbeat who owes money and doesn't pay?
In fact, the national debt that the United States is now carrying has already been much higher than they set at the beginning, and they have adjusted the debt limit of the Federal Reserve 103 times!
You must know that national debt is obtained by the country's economic strength and credibility.
The United States has repeatedly reneged on its hegemonism, forcibly raising the debt limit of the Federal Reserve, which will definitely cause great dissatisfaction from other countries.
And the United States is still trying to cover up, trying to evade the debt by pretending to be stupid, and continue to expand the U.S. debt and fiscal deficit, which is undoubtedly a completely wrong approach.
Even if the United States continues to pretend to be stupid, continues to borrow money from other countries, and keeps digging deeper into this bottomless pit, but the United States' credit can't wait for them to delay any longer.
Now, the U.S. debt is still rising rapidly at a speed of about 1 trillion U.S. dollars every 100 days.
It is expected that by 2034, the U.S. debt will break through 56 trillion U.S. dollars!
And the U.S. economy will only get weaker and weaker, now it's a few trillion U.S. dollars in deficit, the future will be tens of trillions of U.S. dollars, or even hundreds of trillions of U.S. dollars.
But by that time, it will be very difficult for the United States to have room for recovery.
Under the rapidly collapsing finances and trust of the United States, many netizens are urgently concerned, can our motherland lose money?!
What about the more than 600 tons of gold stored in the United States?
What about the more than 700 billion U.S. dollars in U.S. debt held by our country?
First of all, the country must be more forward-looking, in order to reduce losses, our country has been slowly taking back U.S. debt ten years ago.
Now the U.S. debt held by our country has been reduced by about one-third.
As for the more than 600 tons of gold stored in the United States, our country has not thought about taking it back.
It's just that many countries have tried to ask the United States to return the gold, but were directly rejected by the Federal Reserve.
The Federal Reserve is openly announcing to the world: I don't have money now, and I don't have money even if I want it!
For this kind of blatant deadbeat approach, we can only wait and see.
After all, the United States still dares not to do this kind of thing that is not worth the loss of credibility.
As long as the United States dares to do this, it is not a matter of losing credibility, but will attract the opposition and resistance of the whole world.
Paper can't cover up the fire after all, and we naturally have time to watch the United States struggle.
In general, although the overall economic situation of the United States is not very good now, and there is even a risk of bankruptcy.
But after all, there is still a deep economic foundation for decades, and it won't collapse completely in a short time.