U.S. Treasury Secretary Janet Yellen recently issued an urgent warning to the U.S., Congress and the House of Representatives, saying that U.S. Treasury bonds will reach the debt ceiling on June 1 and face the risk of default. This means that the United States has come to the edge of a cliff, and if the bill to raise the debt ceiling is not passed soon, the US national debt will collapse within a month.
Yellen's move also exposed her real purpose in visiting China, that is, she hopes that China can help the United States, rather than sincerely improve Sino-US relations. The shamelessness of the United States lies in the fact that, on the one hand, it constantly provokes and suppresses China, and on the other hand, it asks China for help in times of crisis. This paradoxical behavior is taken for granted in the United States.
However, this time Yellen was really overwhelmed. As Treasury secretary, she has to face the financial needs of all parties, but the United States is no longer able to make ends meet. So, she had to risk being ridiculed by the whole world and publicly announce the countdown to the US national debt.
Yellen first issued a warning to US House Speaker McCarthy and wrote him a letter. In the letter, Yellen mercilessly enumerated the serious consequences of a default on the US national debt and blamed the Republican-controlled House of Representatives as the culprit for everything.
Why didn't the House of Representatives agree to raise the debt ceiling? Because they want to use this to prove the incompetence and failure of Biden **. This is similar to the previous Sino-US balloon incident, Biden wanted to trivialize, but the Republican Party took the opportunity to attack Biden for being soft on China.
Now, U.S. Treasuries are the focus of bipartisan contention, with both betting on who will stay the course and who will withstand the collapse of U.S. Treasuries. They are all waiting for each other's concessions. It can be seen that even at the moment when the US national debt is facing a crisis, the fundamental logic of the United States is still partisanship.
The Democratic Party represented by Biden, as the ruling party, did not find a way to solve the problem, but instead shifted the blame to the Republican Party, and even pre-arranged the crimes. McCarthy, as a Republican, just wants to watch Biden make things worse.
This is the current situation within the United States, and some people may think that I am talking too much, and it is not so serious in the United States. But now the facts are in front of us, the US national debt has reached a life-and-death point, and the two parties are still fighting for political interests.
Of course, the reason why the situation in the United States has become like this, especially in the case of US national debt, is that the United States has lost its path of dependence, and its usual monetary policy has failed.
Previously, the Fed raised interest rates, the dollar returned, other economies were hit, and inflation in the United States decreased. Then the Fed cuts interest rates and harvests the wealth of other countries. In this way, the United States has repeatedly operated and has always had the upper hand. But now this set is not working, the Fed has raised interest rates for more than a year, inflation is still high, and the dollar has not returned. Americans suddenly found that the world no longer needed the dollar, and countries were selling US Treasury bonds or seeking settlement in their own currencies and no longer dealing with the dollar.
It can be said that without China's help, today's U.S. Treasury bonds may be the road to death for the United States. And now, China is ignoring the United States. Even if the House of Representatives passes a bill to raise the debt ceiling today, it will only delay the death period for the United States, but will not solve the fundamental problem.