AmericanEconomyThe growth may seem amazing, but it's actually built onDebtand on a stimulating basis. AmericanDebtLevels have reached an all-time high,Debtmore than 30 trillion dollars, totalDebtMore than $90 trillion. theseDebtMainly in response to the coronavirus pandemic andEconomyThe crisis introduced the fiscal stimulus package andCurrencyeasing. The United States has implemented several in the past few yearsEconomystimulus package, the total amount reached 7$5 trillion. At the same time, the Federal Reserve has also implemented large-scaleCurrencyPolicy ease, bringing the federal benchmark interest rate to historic lows and buying large amounts of Treasuries and guarantees**. This dependenceDebtand stimulated growth patterns that are unstable and can lead to:DebtThe outbreak of the crisis.
DebtGrowth will not only increase the burden on the country, but may also undermine market confidence. The effect of stimulus measures is also decreasing, and further stimulus brings negative effects, such as inflation and bubbles, to giveEconomyBrings challenges.
withEconomyGrowth is accompanied by rising inflation and bubbles. Inflation refers to the persistence of prices, while bubbles refer to the deviation of assets** from their real value. The United States is currently facingInflation rateThe problem of climbing and overvaluation of assets**.
The rise in inflation is mainly due to the imbalance between supply and demand, raw materials*** andCurrencyCaused by factors such as overhair. Current AmericanInflation rateAlready up to 54%, a record since 2008EconomyA new high since the crisis. Inflation rightEconomyThe effects include reduced purchasing power, reduced competitiveness, and an increaseDebtburdens and erosion of credibility, etc.
The existence of bubbles is mainly reflected in **, the housing market and cryptoCurrencyMarket. ** Index hits all-time highs, but withFundamentalsIt is overestimated compared to profitability. The housing market is also significantly larger, which does not match the income level. EncryptionCurrencyThe market is rife with speculation andVolatilityHowever, legal regulation and social recognition need to be developed. The effects of bubbles include asset ** distortion, increased financial risk, market panic andEconomyInstability.
Despite the AmericanEconomyGrowth is strong, but its sustainability cannot be ignored, and there is more uncertainty next year. Debtand the sustainability of stimulus policies have been seriously questioned. Debthas exceeded the tolerable level,DebtCrises have become inevitable. The stimulus is also approaching its limit, with diminishing effects and the withdrawal cannot be postponed.
At the same time, inflation and bubbles are also givenEconomyBrought a test. Inflation rateTargets have been exceeded, increasing the risk of runaway inflation expectations. Assets** deviate from intrinsic value, and market confidence is shaken. These problems all mean the United States next yearEconomyMay be reversed.
AmericanEconomyGrowth faces many challenges and risksDebttoo high, unsustainable stimulus policiesInflation rateProblems such as climbing and excessive assets** have come to the fore. This makes the United StatesEconomyThere are many uncertainties in development, and the future is full of uncertainties. Despite the currentEconomyIt may seem strong, but next year's big reversal is not out of the question. In this regard, we need to remain vigilant, prudently anticipate, and at the same time strengthen ourselvesEconomyInstitution-building to cope with potential challenges and adversities. This can only be ensured through continuous reform and innovationEconomysustainable development.