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At a time when the global economy is teetering on the brink of collapse, the United States has a debt of $34 trillion, an incredible figure that has caught the world's attention. Despite such enormous economic pressure, the United States can easily support a massive military force with 11 aircraft carriers. What are the secrets and strategies behind this seemingly contradictory phenomenon? Let's do it together.
First, let's look at the composition and characteristics of the US debt. The debt of the United States is mainly divided into domestic debt and external debt. According to 2023 data, the public debt of the United States has exceeded $31 trillion. About 70% of this debt is lent by the United States** to its own institutions and citizens, and this part of the debt actually reflects the domestic financial cycle. And the remaining 30 percent is the debt that the United States owes to foreign countries. It is worth noting that the US dollar, as the world's main reserve currency, allows the US to keep borrowing costs low even with such a large amount of debt. This allows the United States to easily cope with debt pressures and maintain a strong military.
Next, let's analyze the military spending of the United States. According to the Department of Defense, the U.S. defense budget in 2023 is about $800 billion, or about 15% of the total federal budget. Although this may not seem like a high percentage, it is actually quite significant on a global scale. U.S. military spending is not just about maintaining its defense industry at home, it's about securing its military presence and influence around the world. And the key to the fact that the United States has been able to sustain such a large military expenditure against the backdrop of huge debts lies in its unique economic structure and fiscal strategy.
First, as the world's largest economy, the United States has extremely strong debt financing capabilities. Its debt issuance is favored by global investors, and borrowing costs are relatively low due to the dollar's reserve currency status. This provides the United States with strong financial support, allowing it to afford huge military spending.
Second, the United States** uses debt as a fiscal tool to regulate economic growth and inflation through the issuance of Treasury bonds. This strategy not only maintained stable economic growth, but also provided a solid financial basis for military spending. By controlling the size of its debt and the level of interest rates, the United States has kept the economy running smoothly and ensured the sustainability of military spending.
In addition, the military power of the United States is actually a manifestation of its economic power. The maintenance and display of military power not only ensures the global security interests of the United States, but also ensures the global expansion of its economic interests. For example, the U.S. naval power ensures the security of the world's maritime routes and indirectly maintains the stability of the international system. This is crucial for the United States, as it is one of the largest countries in the world. In addition, US military spending has produced a series of economic effects. As one of the important industries in the United States, the defense industry not only creates a large number of jobs, but also promotes scientific and technological innovation. In the long run, these technological innovations, in turn, support the continued growth of the U.S. economy, forming a virtuous circle.
To sum up, it is no accident that the United States is able to easily support a strong military with a debt of $34 trillion. Its unique economic structure, debt financing capacity and fiscal strategy are the keys to its success. The military power of the United States is not just a symbol of ***, but also a manifestation of its economic power and global status. This unique combination of economy and military gives the United States a huge advantage, allowing it to maintain a leadership position on the global stage. In the current uncertain global situation, it is worth pondering for other countries how to balance economic development and military power in order to achieve a more competitive position on the world stage. - That's my point.
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