Many people like to analyze economic data in the United States. In fact, data analysis is not of great significance to the United States. If this thing is really effective, the United States will never let you learn it for free.
What is the core driving force for US wealth growth? In fact, it is US bond . Many financial scholars are right. The Treasury bonds issued by the United States have never thought about repaying money. They are market behavior, and US bonds are tradable financial products . Some people say that US debt is safe because , Fed is the biggest buyer. This is pure nonsense. Where does the Fed get money except for the money printing machine? The amount of US Treasury bought by the Federal Reserve is the amount of money printed. In fact, the Fed prints a lot of money every year. It purchased U.S. debt by printing money and transferred the new currency to the U.S. government for various expenses. In fact, the United States only needs to pay interest, and the principal does not need to be paid back, because it can easily pay US debts by issuing additional currencies.
So the core of US wealth growth is actually the US dollar, and the additional issuance of US dollars is based on US bonds. So U.S. debt is the foundation. If there is a problem with the US debt, then the blow to US economy is the worst. In fact, although their real revenue is higher than that of Chinese companies, it is not as high as that of Chinese companies. The core of Apple and Tesla's profits is not in the market but in the financial market. Especially Tesla, there are actually many Musk and projects, but there are actually very few that really make profits. Where does the money come from? It is the financial market, and it is very doubtful whether Musk's books have profits. This kind of gameplay won't work in China.
But the United States can do it, because the US economy is all based on finance. Even high-tech is essentially a form of finance, and their profitability is inseparable from finance. Therefore, the US economy must have a steady stream of US dollar inflows to achieve growth. This is related to the issue of additional issuance of US dollar. If the issuance of US bonds is not smooth, the issuance of additional issuance of US dollar will encounter huge problems. This will hit every aspect of the U.S. economy. This is the essence of the current difficulties encountered by the US economy.
So why is US debt not so good? Because of high inflation, buying US bonds is a loss. Inflation is 8.5%, and the interest rate of US bond is less than 3%. A net loss of 5% per year. No one can stand this, right? So the US debt is no longer good.
The US bonds are no longer good, which will hinder the issuance of US dollars, resulting in the huge financial economy machine losing lubrication and facing a crisis. The current difficulties in the United States are here.
In recent months, the United States has frequently sent out signals of lifting trade sanctions against China, but has not received a response from China. This is the core issue of the recent Biden government anxiety. The so-called Southeast Asian Conference and the America Conference are all tricks and useless. The United States now has only two ways to go, either having some degree of conflict with China, so that China's dollar assets can be cancelled and the United States can breathe a sigh of relief. Either bow to China and admit their mistakes, begging China to release the massive export of Chinese cheap goods to the United States, making the US dollar useful again and lowering inflation levels.
Of course, I also said before that the core of the US economy is the US dollar. As long as the US dollar circulation system returns to health again, other so-called economic data will be nothing to the US economy. As long as the US dollar circulation system is normal, all the US economic indicators will be very good. You can be resurrected in one or two months. Because economic data are fake for the United States, including Russia, the same is true for economic data. Economic data can only measure its economic activity, but cannot reflect its essence. Russia is its essence as its resource, and the code for developing the Russian economy is to increase the price of raw materials. The others are all wrong ways. In this sense, it is basically impossible for Russia to develop high-tech industries, because the allocation of production factors must obey economic laws, and the best talents cannot stay away from the most profitable areas. This is an objective law.
Similarly, in recent decades, the high-tech field in the United States is actually gradually losing momentum. What is the reason? It's very simple, it's not profitable, at least it's almost the same as beggars compared to finance.Let the smartest people become beggars? How is this possible? So the smartest people in the United States are now working hard to study the mystery of the US dollar tide, rather than quantum technology.
The current United States is struggling to suppress China's development, which is actually very sad. How could the healthy America be afraid of competition? After all, it is still a problem in the United States' own society. Let opportunistic people become the most respected people, and let those scientists who have been studying the scriptures become pitiful and ridiculous objects. It would be strange if this development model does not go astray. Among the young people in the United States today, celebrities and financial elites who make money faster are the most respected people. Chinese teenagers with excellent academic performance are the targets of being ridiculed and bullied in the United States. This kind of social dollar has a good future. This kind of thing the United States still wants to compete with China? Are you worthy?