The growing size of the U.S. debt, reaching an all-time high of $33 trillion, has sparked widespread discussion and doubts. Many people are concerned about how the United States will repay such a large national debt, and the United States does not seem to have any intention of repaying it. In fact, the United States has adopted a series of strategies to deal with the U.S. debt problem, and I will analyze the four steps of the U.S. debt "conspiracy" for you
1. First of all, the Federal Reserve has attracted funds back to the United States through interest rate hikes. This repatriation of funds has led to a shortage of international liquidity, which has brought varying degrees of recession to the economies of other countries, resulting in asset depreciation and economic crises. For example, the A** market was sharply wiped out by nearly $30 trillion in market value during the financial crisis. This step can be said to be an important means for the United States to use US debt to influence the global economy.
2. Second, the Federal Reserve announced interest rate cuts to obtain more assets through the return of funds to the world. After attracting a large number of dollars back to the United States, the United States then uses the issuance of U.S. bonds to invest these dollars in economic crises or economically difficult countries, and lowers the price of "their real estate market, and even mineral resources, thereby pushing up the price of these assets and creating a wave of bubbles." It can be seen that the ingenious strategy of the United States to purchase the assets of other countries through borrowing not only makes use of the unlimited quantitative easing policy of the US dollar, but also makes use of the US dollar that issues US bonds, so as to buy low and sell high, making full use of the opportunity of other countries' economic difficulties.
3. Then, the United States earns the difference by selling at a low price. One of the main purposes of U.S. borrowing is to get rid of the debt by borrowing new debt to repay old debt, and there is no need to actually repay it. Huge profits are made by selling purchased assets such as real estate and selling them to other countries. This strategy can be seen in the three decades of Japan's loss, when Japan's real estate and ** collapsed, while the United States reaped huge benefits. So, the U.S. doesn't actually have the intention of repaying its debts, but instead exchanging borrowed new debt for old debt, and using the process to make the difference.
4. Finally, the United States still has not really repaid its debt through inflation and debt amortization. The U.S. can achieve debt relief by creating inflation by weakening the value of its debt. In addition, the U.S. can amortize old debt by issuing new debt, in exchange for high technology and advanced **, making other countries feel grateful. Coupled with the erosion of inflation, the purchase of U.S. bonds has become "meat buns and dogs, and there is no return". This is the "impotence" of the United States, which was used in the 2008 financial crisis, and it still is. Does it really seem like there is no solution for US Treasuries?
In fact, solving the US debt problem is not that complicated. To put it simply, we can do this by not buying US Treasuries. As the second largest creditor of US debt, China has sold US bonds for six or seven consecutive months, causing the total US debt to fall to an unprecedented low of more than $800 billion. The United States is not happy about this, because China sees the risks and dangers of US bonds and resolutely sells them. This is also one of the reasons why Sino-US relations have not returned to the original rapprochement and mutual respect.
In summary, the United States has used a series of strategies to deal with the huge US debt, and there is no real intention to repay the debt. They take advantage of the global hegemony of the US dollar to gather global economic wool by raising interest rates, cutting interest rates, buying low and selling high, borrowing new debt to pay off old debts, and inflation. However, as other countries, especially large creditors like China, they can weaken the economic influence of the United States by selling US debt and convey their authority and determination to the world. Therefore, we should remain vigilant against the US debt problem and find solutions to protect our own interests and the country's economic security.
(Word count: 2500 words).