The United States is currently in crisis. Although it is particularly pleasant to print money, the United States has now set a record high for inflation and the basic lives of people will face serious threats. Another 28.4 trillion U.S. bond is about to expire, and August 2 is the deadline, and the United States will face the situation of not being able to pay back the money. The "financial tsunami" may soon sweep across the United States and destroy the Federal Reserve . How will the United States save this crisis? Do you still have to continue printing money and continue gambling? Today we will have an in-depth analysis!
The United States' original economic strength is particularly strong. Since the end of World War II , the United States has become the world's largest economy and is in a world leader in all fields. With strong resources and an unshakable position, China's economy has developed rapidly in recent years and has become the world's second largest economy, which has made the dominant United States feel an unprecedented threat.
So the then-US president Trump In July 2018, it claimed that it would impose an additional tariff of 25% on Chinese goods, which also means that the "trade war" between China and the United States has officially begun. Trump has repeatedly claimed that "trade war" is very simple, and the United States will definitely win. By putting pressure on various countries, the United States has always been the means of being good at, but what he did not expect was that China did not surrender. Facing these lists, it was not out of weakness and immediately imposed an additional tariff of 25% on 106 US goods.
As the saying goes, there is no wind and waves. The reason why the United States launched a trade war is that China has seriously affected the hegemony of the United States. The United States launched this war to drag down China's economic development and thus stabilize its own position.
Secondly, the United States wants to become the dominant country in the world's food with their technological strength and gain more benefits from it. However, what the United States did not expect was that China's trade volume increased instead of decreasing. Instead, the United States caused huge losses, and these losses were borne by American companies themselves.
World Trade Organization data shows that China's trade volume is higher than that of Germany, Japan, South Korea and other countries, and it still maintains its position as the world's largest country in goods trade. The Sino-US trade war did not bring the United States the results as scheduled. Instead, the American people were hurt, and domestic prices continued to rise, which increased the economic burden of ordinary people. Domestic grievances said that this was completely "injuring eight hundred enemies and hurting one thousand themselves." The trade war has also had an impact on the international community, and it can even be said to have undermined the stability of the global economic and trade order.
In this trade war, the United States has suffered a lot but no benefit. In addition, due to the outbreak of the epidemic, due to Trump's inaction policy, the epidemic in the United States has been seriously out of control, and various industries have stopped work and production, tens of millions of people are unemployed and facing bankruptcy, the stock market has plummeted, the GDP of has severely shrunk, and the US economy is facing collapse. U.S. Treasury bonds rose to 28 trillion.
This goes back to 2001. Bush Jr. came to power and took 8 years to owed 4 trillion US dollars. 8 years later, Obama was not willing to be outdone and owed 10 trillion US dollars. The total amount of US debt reached 20 trillion US dollars. Trump even let himself go and owed 7 trillion US dollars in four years. So Biden also followed the formation and implemented a 1.9 trillion US dollars stimulus plan as soon as he took office, but this was just the beginning. He then issued a 6 trillion US dollars stimulus plan, and so far he owed 28.4 trillion US dollars in national debt.
In order to pay off these debts, the United States began to print money crazily. This was what they did before. Their own currency system was stable, but other countries were inflated. So why did this situation come into being?
This has to talk about the hegemony of the US dollar. The hegemony of the US dollar originated in the 1970s. In order to obtain advanced weapons from the United States, Arab countries calmly accepted the conditions of the United States, that is, they must use the US dollar to settle oil. The main production place of oil is Middle East , which monopolizes the lifeblood of the industry and indirectly forms the hegemony of the US dollar. In the subsequent economic crisis, , the hegemony of the US dollar played a very important role.
USD is a globally recognized currency in circulation. They use this money to buy goods from other countries, so that manufacturing industries around the world can "pay" for it.The specific routine is that when the United States experiences an economic crisis, they start printing large amounts of money, reducing bank interest, allowing the US dollar to flow into the market, and resolving the internal inflation caused by money printing. In layman's terms, if the interest you get in this bank is low, you will get the money to a country with high interest rates, thereby earning the interest rate spread in the middle .
However, this routine has not been very useful until now, because after the Sino-US trade war caused Chinese products to enter the US market, prices grew rapidly. The US Treasury Secretary once bluntly stated during the Congressional meeting: The Sino-US trade war has cheated the United States, and the trade war will only intensify the global de-dollarization speed.
The United States has issued 6 trillion US dollars in the past year, but the question is that if you print a large amount of dollars like this and want the whole world to pay for you, can other countries be willing? Of course the answer is impossible. They are not "fools". They used to be the past, and now they are now. As a supporter of the US dollar's "flow-free" supporter, Federal Reserve Chairman Powell made it clear that even if the US inflation rate reaches 2%, monetary easing will not stop, and the Federal Reserve may have to carry out the flow-free to the end.
The pressure brought by the United States' large-scale printing of the US dollar this time has not been transferred to other countries through international trade or national debt, but has suffered a lot of backlash. Data shows that the cost of living in the United States is gradually rising, with gasoline prices rising sharply by 56% and furniture rising by 9%. The United States' shooting itself in the foot really made me confused.
Now domestic inflation in the United States has been out of control, and the US dollar can only circulate domestically, thus pushing up the inflation rate and breaking the largest year-on-year increase since 2008. In addition, due to the impact of the epidemic, the number of unemployed people has reached a serious impact on people's lives, and the rise in prices has reached an unbearable level. It is obvious that the decision made by the Biden administration is wrong.
Under this pressure, the US government has to find a way out again. As of now, China is the only one who can help the United States. Due to China's huge economic market and economic development getting better and better, and it is the country with the fastest economic recovery in the epidemic. Only China can help the United States overcome difficulties, and China has become the last "life-saving straw" for the United States.
In the conversation between China and the United States, the United States has always taken a superior attitude. If you want China to help you, you have to show a condescending attitude. Then no one wants to let anyone do it!
The problem is, do you have to take over if you want China to take over? Why should I listen to you? Here I just want to say "Wash and sleep, there are everything in my dreams."
The Biden administration is crazy about talking to China in order to stop this Sino-US trade war. As the world's largest economic power, it is now able to request cooperation with our country, which means it is really out of money. Just on June 2, US Secretary of Finance Yellen had a video call with my country.
During the communication process, she hopes that China will lend a helping hand to help the United States suppress inflation and stabilize the status of the US dollar. China said: If the United States wants to reconcile, it should take mutual respect and cannot blindly think about suppressing each other. It must take practical actions to prove its sincerity under the premise of equality, rather than a verbal commitment, otherwise everything will be free from negotiation.
On June 3, Biden signed an administrative ban to blacklist 59 Chinese companies. This is a soft and hard way. China does not cause trouble but is not afraid of trouble. Do you think China will surrender? I can only say that Biden is thinking too much.
As of July 10, the US fiscal deficit has reached US$2.1 trillion. Set a new growth high in the first eight months. If this continues, the high amount of US debt may crush the United States. Can the United States survive this difficulty? Do you still have to continue printing money and continue gambling?
U.S. Treasury Secretary Yellen publicly stated that if this continues, the United States may default a lot in August, and the U.S. Treasury bond ceiling should be suspended and then borrow money to repay the soon-to-due US bonds. After all, in addition to this method, it can alleviate the U.S. urgent needs. But this is also " to tear down the east wall and repair the west wall ", not a long-term solution.
Because the American high-tech industry is worrying, the money borrowed cannot produce enough value. Not only can it not produce new value, but it cannot even reach the original money borrowed, so no country dares to borrow money to the United States.
If you continue to print money, it will cause a huge discount to the credit of the US dollar, lose its status as an international currency, and even be abandoned by international capital. Once a default occurs, another global financial crisis will surely be set off.
It is precisely because the current economic situation in the United States continues to decline, and the pressure on the people is getting greater and greater, and these problems are all wrong decisions from the US government. In order to protect the lives of the people in their own states, 13 states in the United States have begun to make independence one after another. Just like Civil War , these states are independent not to challenge the federal government, but to the quality of life of their own masses. If Biden can't think of a solution for a long time, the United States is also possible.
As the risk of debt default becomes higher and higher, countries have begun to sell US bonds. The first thing that stands out is Russia. The Russian Ministry of Finance claims to sell all US bonds within one month. The reason why Russia sells US bonds is that its domestic economy is not good, and that Russia has less trade with the United States compared with other countries. Therefore, reducing holding of US bonds will not only not affect itself, but will have an impact on the United States.
The outcome of the United States is entirely due to its own fault. If the Federal Reserve continues to raise the debt ceiling now, the interest that the United States needs to repay every year will be as high as 800 billion, and the amount will slowly increase over time. I want to say "Who can withstand this?" Is there really no way?
As long as the United States can achieve an overwhelming victory against China in the trade war, use a large number of products to monopolize overseas markets, block the Chinese economy, force China to switch the RMB and the US dollar in a comprehensive manner, but this is also a "dream", but the key is whether it has this strength?
or the United States changes its attitude towards China. As we all know, The Republican Party of the United States and the Democratic Party expressed their agreement on its position towards China. Under such circumstances, if the United States wants to change its attitude towards China, it requires entrepreneurs and executives of multinational companies to speak out together on the political benefits of the people of China and the United States, so that China-US relations can return to the right track.
On the contrary, US economic crisis is a good opportunity for the RMB, which instead allows the RMB to gain a firm foothold. As the RMB's status in the international community is getting higher and higher, it has received unanimous praise internationally, so countries have turned their attention to China's national debt, which means that the internationalization of the RMB has gradually matured.
Today, when the US dollar is about to collapse, we should promote the internationalization of the RMB in an orderly and vigorous manner and get rid of its dependence on the US dollar. Once the RMB is fully mature, even if the capital "tsunami" is "sunami", our country will not have much impact.
There is not much time left for the US dollar. China already has enough strength to face the United States. If the United States negotiates with sincerity and respect, we welcome it. If the United States is still so obsessed, we will not be abusive to this "stinky problem".
Here I hope the Biden administration will consider the American people and carefully consider the issue of China's switch. As long as the United States switches, the economic crisis will be solved and will even take off again. However, the price is to become China's "blood bag". After all, in the option of capitalism , "selling the country and seeking honor" is not unacceptable.
If the United States continues this operation, the result will be self-bound. If you choose the "bet" method in terms of national destiny, it will inevitably lead to a recession of national destiny. White House let the Fed continue to print money and continue to bet, and the only thing that harms the American people.
There is no innocent government in the face of the "financial tsunami", but it will only harm innocent people without resistance. I hope the US government can do it well, restrain the face of the so-called great power, and resolve the economic crisis that is about to sweep the world as soon as possible.
Today’s video is all about sharing. Welcome to the Pioneer Observatory. If you like my content, remember to follow, like and comment. See you next episode!
