At present, the economic growth rate of the United States has slowed down significantly, the decline in fiscal revenue, and the continuous expansion of the scale of debt have put the United States in a dilemma. In the past, the United States Xi used to reap other countries by passing on the economic crisis, but now it has achieved little success.
Major overseas creditors such as China and Japan have sold off US bonds, and the United States has no choice but to adjust its target, and the domestic people will become the new "takers", and the national bonds may eventually be paid by ordinary Americans.
Recently released economic data showed that US GDP grew by 4% year-on-year in the third quarter9%, but only 2% is expected in the fourth quarter. JPMorgan Chase & Co. and other institutions ** U.S. economic growth will fall to 1 next year6%, less than half this year.
Declining tax revenues and corporate profits mean lower fiscal revenues, but at the same time, high debt interest payments continue to rise rapidly, further worsening the fiscal deficit.
Since the beginning of this year alone, China, Japan and other largest overseas holders of U.S. bonds have sold nearly $280 billion. Investors have clearly sensed the increased risk of U.S. bonds, and have been raising the risk one after another.
In addition to the national debt, the average American household is also facing rising interest payments on various types of debt. Recently, loan interest rates have remained high, and the repayment costs of credit cards and mortgages have risen sharply, which has seriously weakened the purchasing power of residents.
U.S. consumer durables sales in October were 5% month-on-month4% from the previous month 4The 6 percent increase represents a huge difference of 10 percentage points. This indicates that there may be a cliff-like decline in the future.
Consumption is an important component of the U.S. economy, and once a fault occurs, it will inevitably have a chain reaction on the relevant industrial chains, making the road to economic recovery in the United States more difficult.
The U.S. Treasury began large-scale new bond issuance in June this year, fearing a market snull. To its delight, nearly 70% of the new bonds were purchased by domestic institutions and citizens in the United States, becoming a new batch of "pick-up heroes".
In effect, this means that ordinary Americans hold U.S. debt, either directly or indirectly, and they may end up paying for the U.S. debt crisis.
The U.S. is facing multiple dilemmas, including slowing economic growth, declining fiscal revenues, and an excessive debt burden. Major overseas creditors have been taking US bonds one after another, and the idea of passing on the economic crisis is difficult to realize.
The debt pressure of ordinary American households is also increasing rapidly, weakening the endogenous momentum of economic recovery. Although U.S. citizens have recently become the new major "pick-ups" of U.S. debt, it also means that ordinary people may end up paying for the U.S. debt crisis.
Looking ahead, the United States still needs to take concrete measures to promote economic growth and stabilize fiscal revenues, while also accelerating debt consolidation to reduce financial risks.