The Americans can't buy it, and that's a shocking fact.
Haven't Americans, you might ask, been enjoying the strength of the dollar all along?Haven't you been harvesting the world with dollars and U.S. bonds?Haven't you been using the appreciation and depreciation of the dollar to manipulate the assets of other countries**?
Yes, these are facts of the past. But now, everything is changing.
Total U.S. imports fell sharply by 63%, which means that Americans' purchasing power is declining, their consumer demand is decreasing, and their quality of life is decreasing.
This is a huge blow to Asian countries that rely on export-oriented manufacturing. Vietnam, India, South Korea, Japan and other countries have seen exports decline to varying degrees, their orders are disappearing, their factories are shutting down, and their workers are losing their jobs.
Why is that?Is it because of the decline in the quality of products in Asian countries?Is it because the competitiveness of Asian countries has declined?
No, it's because the U.S. financial strategy has failed.
The United States has been using dollars and U.S. bonds to maintain global financial supremacy, and it can use printed dollars to buy goods around the world, and then use the issued U.S. bonds to ** dollars, thus achieving a kind of transaction without capital.
The United States can also control the appreciation and depreciation of the dollar by raising and lowering interest rates, thereby affecting global capital flows, and it can sell the assets of other countries at the highest point and ** the assets of other countries at the lowest point, thus achieving a risk-free harvest.
The premise of this financial strategy is that both the US dollar and US Treasuries are global safe havens, global credit anchors, and global reserve currencies.
But now, that premise no longer exists.
Countries around the world have begun to sell off U.S. bonds, and some countries have even emptied their U.S. bonds, which has led to a rise in the yield of U.S. bonds, an increase in U.S. borrowing costs, a rise in the U.S. fiscal deficit, and a decline in U.S. economic growth.
Countries around the world have also begun to get rid of their dependence on the US dollar, and some countries have even begun to use other currencies for settlement, which has led to a decline in demand for the US dollar, a rise in the value of the US dollar, an increase in the cost of imports in the United States, an increase in inflation in the United States, and a decrease in the consumption power of the United States.
That's why Americans can't buy anymore, that's why America's financial strategy has failed, and that's why the global financial landscape is changing dramatically.
Whether the dollar and U.S. debt can maintain their former status, and whether the U.S. can continue to harvest globally, are all questions worth pondering.
However, we don't have to be too pessimistic, because this is also an era of opportunities, because it is also an era of innovation and change, because it is also an era of cooperation and win-win.
We should see that the global economy and finance are developing in a more diversified, open, balanced and sustainable direction, and we should actively participate in it and contribute our wisdom and strength to jointly create a better world.