Against the backdrop of global economic instability, the United States** has adopted an unlimited quantitative easing monetary policy to stimulate economic recovery. However, this policy has led to an ever-increasing increase in the size of the US debt, which now exceeds $33 trillion, a record high. This figure worries and questions many because it is almost twice the gross domestic product (GDP) of the United States. Faced with such a huge scale of debt, people began to pay attention to the question of how the United States would repay this huge debt.
In response to this problem, many people may think of the U.S. take-off strategy, that is, the United States relies on its global financial hegemony and resource advantage to pass on debts to other countries through a series of means. However, we cannot simply assume that the United States maintains its financial position entirely by not paying it back. In fact, the solution to the US debt problem may be more complex and cunning.
To understand how the U.S. uses U.S. debt to achieve its "positive strategy", we should first look at the U.S. Federal Reserve's (Fed) interest rate hike policy. When the Fed raises interest rates, it will attract funds back to the United States, resulting in tight global liquidity. Such tensions not only trigger economic recessions in other countries, but can also lead to asset depreciation and even economic crises.
Then, the Fed announced a rate cut, in fact, to harvest global assets. After accumulating a large amount of dollars through interest rate hikes, the United States then uses the dollars repatriated from the issuance of U.S. bonds to "** cheap assets for countries with economic difficulties." This kind of operation has caused the speculation of the real estate market and even the mineral industry in these countries to be unprecedentedly high, forming a huge asset bubble. In fact, the United States is using debt to buy the assets of other countries with borrowed money and transfer the risk to these countries.
In addition, the United States has also adopted the method of borrowing new debts to repay old debts, and does not intend to truly fulfill its commitment to repay its debts. The U.S. delays debt repayment by swapping new debt for old debt and exchanging it for some high-tech products or advanced products that are not even advanced. While this move goes against the spirit of default, it is seen by the United States as an ingenious means to continue to manipulate financial magic on the debt issue.
The reason why the United States has been able to play tricks on the debt issue again and again is not only because of its strong economic and financial strength, but more importantly, because of the continuation and development of its global financial hegemony. Through a stable monetary policy and financial system, the United States has attracted a large amount of international investment and capital inflows, making the US dollar a global reserve currency.
This global financial supremacy has allowed the United States to dominate the global economy and use its ability to issue U.S. debt to skillfully control the global financial landscape. The United States, with its highly developed financial system, continues to attract global capital flows to the United States, which in turn increases the value of the dollar. This model allows the United States to buy all kinds of resources and assets at low prices in the global market and give them to other countries.
However, this kind of "conspiracy" of U.S. bonds is not perfect, and it also has certain hidden dangers and risks. First, the U.S. debt is too large, and if a debt crisis erupts, it will inevitably have a huge impact on the global financial system and markets. Second, such financial pursuits by the United States could lead to a widening gap between the rich and the poor, exacerbating global economic inequality. Finally, the sell-off of U.S. debt by other countries could also trigger a global financial crisis and currency war.
In the face of the continuous expansion of the scale of US debt and the "conspiracy" behind it, the international community should have a sober understanding and look for a diversified financial operation model. First, other countries need to be more risk-aware and less over-reliant on U.S. debt. It is necessary to be cautious when buying US bonds and reduce support for US financial hegemony to prevent excessive borrowing and debt crises.
Second, other countries need to strengthen their domestic financial systems and improve their financial strength. Through reform and innovation, we will cultivate the local financial industry, reduce dependence on the US dollar and the US financial system, and achieve independent economic development and financial stability.
Finally, the international community should strengthen cooperation and promote the reform and improvement of the international financial institutions and the global financial governance system to cope with the risks and challenges brought about by the US debt problem. Only through joint efforts can we achieve balance and stability in the global financial system and provide strong support for the sustainable development of the global economy.
To sum up, the continuous expansion of the scale of U.S. debt and the "conspiracy" of the United States have brought huge uncertainties and risks to the global economy. Other countries should strengthen their risk awareness, reduce their over-reliance on U.S. debt, and diversify their financial systems to cope with changes in the global financial landscape. The international community should also strengthen cooperation in reforming and improving the global financial system in order to create favorable conditions for sustainable economic development. Only in this way can the stability and prosperity of the global economy be achieved.