Recently, the United States has been caught in an emergencyEconomyCircumstance. After several rounds of tried, the United States had to adjust its strategy and change its harvesting target. Overseas creditors such as China and Japan have sold offU.S. Treasuries, making 70% of new releasesU.S. TreasuriesPurchased domestically, this phenomenon further confirms our suspicions. The United States is facingEconomic growthThe situation of declining speed has had a multifaceted impact on fiscal revenue. Reduction of tax revenues, debtInterest expenseof the increase as wellFiscal deficitsThe rise is given to the United StatesEconomyand financial stability pose potential risks. At the same time, households are also under different types of debt pressure, which exacerbates the decline in their purchasing power, further affecting the United StatesEconomyNegative impact. However, in this time of crisis, the American people have chosen unexpectedlyPurchase of Treasury bonds, becomeDebt crisisThe largest pick-up man.
1. The impact of the decrease in tax revenue
withEconomic growthAs the rate decreases, so does tax revenue. Declining corporate profits and slowing consumption will increase the pressure on tax revenues. This will adversely affect the health of the U.S. fiscal budget, making it insufficient to support spending.
2. The impact of the increase in debt interest expenses
With the decline in fiscal revenues, the debt of the United StatesInterest expenseIncreasing. This is related to:Fiscal deficitsThe rise is closely related to the need for issuanceTreasury bondsThe number is constantly increasing. However,Treasury bondsThe increase in size will lead to:Treasury bondsthe decline in the value of this to the United StatesEconomyand financial stability pose potential risks.
1. Selling actions in China and Japan
So far, the cumulative selling volume of two overseas creditors, China and Japan, has reached about $280 billion. This data shows overseasInvestmentsYesU.S. Treasuriesof doubts and distrust.
2. Restrictions on spending by U.S. bond holders
In addition to the sell-off by overseas creditors, domestic holders in the United States are also under pressure. In recent years,U.S. TreasuriesYields have remained at high levels, which has led to higher borrowing costs. High levels of debtInterest expenseThis puts more pressure on households to repay their debts and cannot bear the additional burden of spending. This has limited their spending on other consumer aspects, directly impacting the development of key sectors such as retail and manufacturing.
1. Ordinary Americans have become new creditors
Under the unfavorable external environment, the American people unexpectedly chose to buyU.S. Treasuries。Recent data shows that nearly 70 percent of new bond issuance is bought domestically, meaning that ordinary Americans become the new creditors. This move is for:United States**is important because it will allow ** to continue financing and alleviate to some extentDebt crisis
2. Americans pay for themselves
However, the buying behavior of ordinary Americans also reflects the realities they face. Although they may be awareDebt crisisbut they also know that there is no better alternative. In the current situation, purchaseU.S. TreasuriesProbably the best way for them to protect their interests. Although the ultimate creditor is still the average American family through indirect holding, it also means that they take on more risks and responsibilities.
The United States is facingEconomic growthThe slowdown has had a multifaceted impact on fiscal revenue. The sell-off actions of overseas creditors have exacerbated the severity of the crisis to the United StatesEconomyand financial stability. However, the average American unexpectedly chose to buyU.S. Treasuriesand becameDebt crisisof new creditors. They choose to buyU.S. TreasuriesThe significance is not only to provide funds for **, but also to reflect their actual needs to protect their own interests.
In this unpredictable world,EconomywithFinancial riskIt can appear at any time. As individuals, we need to be attentive and analytic at all timesEconomymovement in order to make the right decisions. And as a country, we should strengthen the domestic strengthEconomystability and sustainable development ability, reducing external risks toEconomyimpact. Only then will we be able to cope betterDebt crisisand other potentialEconomypredicament, to ensure the long-term interests of the country and the people.