Presumably everyone knows that the price of gold is increasing rapidly recently. What is the reason for this? The main reason is the depreciation of the dollar! As the universal currency of the world, the stability and exchange rate of are one of the main standards to measure the world economy, and the recent depreciation of the US dollar also means that this system is no longer applicable. Gold is different from currency, so when the current situation is unstable, gold will show a significant increase, which also has a lot to do with the proportion of people holding gold.
In the previous article, the author talked about how the United States "harvested the world" by printing a large amount of money, so I won't explain too much here. In short, the United States uses the status of the U.S. dollar to print a lot of money, and then depreciates the U.S. dollar, so that commodity prices will increase. In this way, the world will have to pay for the actions of the United States. However, American citizens can increase their purchasing power through the money issued by the state, so that can completely hedge from the pressure of inflation. However, this article will start from another angle and take you to see whether the large amount of money printing in the United States will affect the debt of the United States?
According to reports, as of the first quarter of 2021, the total debt of the United States has reached 28.1 trillion US dollars. The country’s debt is also called bonds in the market. Except for the US’s own debt of US$6.1 trillion, the remaining US$22 trillion is “wandering” around the world in the form of bonds, becoming a veritable “public”. debt". The Fed prints a lot of money and cannot directly distribute it to the masses. It requires the United States to borrow from the Fed. This also means that the United States has borrowed more than $6 trillion from the Fed in the past two years.
In fact, friends who are often engaged in investment understand that whether you are buying futures or buying bonds, even if you are buying high-end investments such as luxury goods, they basically have one thing in common, that is, "market theory" ". Only when goods, coins, and companies maintain a stable trend, can this be a stable financial management project that can be invested. And this kind of "bandit" operation in the United States has directly "collapsed" the stability of U.S. bonds.Just say a little bit and you will understand, does the United States borrow money from the Fed and pay it back? Will this kind of non-interest-free or even the repayment of the principal cause the value of other U.S. bonds to be diluted?
After the US has printed money, it has been continuously distributed to the masses, which means that Americans can use the money to buy a large number of imported goods. At the same time, the chain effect of having this money in the United States is even more terrifying, directly leading to the continuous skyrocketing of the U.S. stock market. According to incomplete statistics, the market value of the US stock market has increased by US$20 trillion. Can you see it? By printing only $6 trillion in banknotes, the low-level Americans have a livelihood, and the wealthy high-level people have made a lot of money by using the stock market. Although the U.S. CPI is now very high, I have to admit that this wave of "leeks" in the U.S. has been successfully cut again!
(Wen/Xuanzi)
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