February** Dynamic Incentive Program
The current financial turmoil in the United States is the national debt crisis, and if you don't agree, it will be 34 trillion US dollars! This number is already chilling, and what is even more terrifying is that ** seems to turn a blind eye to it. Yellen, our Treasury secretary, seems to be wandering in an unseen illusion, downplaying this huge number.
The U.S. national debt has exceeded 120% of GDP, and every American is saddled with a debt of $100,000, which is no joke! Imagine that each family had to pay off their debt with $1,000 a month, and that debt would have to drag on for 22 years! This sheer scale of debt has long been eroding the U.S. financial system, something that was rare before.
The most recent issuance of the 5-year US Treasury note was a miserable slurrel, with little interest from investors and almost zero demand. This stumped the U.S. Treasury and had to find a primary underwriter to contract all the U.S. debt and deal with it. The debt crisis is no joke, and the decline in demand for U.S. bonds and the need for the Treasury to pay more interest to attract investors are a sign of the decline in the credibility of U.S. bonds.
The U.S. deficit has soared and is expected to reach $2 trillion in fiscal year 2024! These deficits will further increase the debt burden of the United States, and more money will have to be used to pay interest. And these interest payments are actually paid for by global U.S. Treasury investors, including Japan and China.
The U.S. fiscal situation is already precarious, and by 2035, social security reserves will bottom out. In order to cope with the debt crisis, the United States can only continue to issue Treasury bonds and pass on the debt to global investors. But borrowing rates**, interest payments in the U.S. have been increasing and are now as high as about $1 trillion.
To solve this problem, we must first control the fiscal deficit and expenditure, and second, reduce interest expenses. However, the instability of the geopolitical situation, as well as changes in the international situation, pose challenges to the solution. Add to that the possibility of an inflation crisis, which is really worrying.
While the immediate crisis is imminent, what else is Yellen doing? What kind of trouble is it to look at a huge debt of $34 trillion? The debt crisis is intensifying, and countries such as China continue to sell US Treasury bonds and increase their holdings! This is not a joke, why is the United States so indifferent?
America's decline is not just talk, and the accumulation of history and the current crisis are intertwined into a worrying picture. Only by stabilizing the domestic economy can we wait for the outbreak of civil strife and debt crisis in the United States, which is the key to victory!
The more debt you have, the more pressure you have, but in the face of huge debts and growing deficits, Yellen and the United States must take it seriously and stop turning a blind eye. Only by tackling the debt crisis can the stability of the country's financial system and the sustainable development of its economy be ensured.