Preface
However, it is surprising that these economically impoverished areas in Africa do not have much debt. Of course, the economy of Africa is backward, and many countries are unwilling to lend money to them, fearing that they will not pay it back. What makes people curious is that the debts of the US economy have reached 30 trillion. Will China be more than Japan's 12 trillion?
From the lending relationship, it can be seen that the people's livelihood economic index
If there is no funds, it will be very difficult for the country to do a good job in construction. Therefore, when many big countries develop, they will borrow money from other countries and then develop their domestic economies. Just like the United States, when it was developing in the early stages, it also borrowed a lot of money to make the United States reach its current prosperity step by step. Like Africa, it has proposed to borrow money to develop, but many European and American countries are unwilling to lend money to Africa.
Africa's economic level is relatively inferior and has been internally unstable for many years. If you lend money to Africa, it is really easy to lend it out and difficult to collect it back. If Africa has been using its underdeveloped economy as an excuse and can embezzle debts, then these countries that borrow money will have the problem of eating berberine.
After comparison, rich countries will choose some big countries to invest. At least, these countries can pay back the money after development. From the borrowing and lending relationship between countries, we can also see the people's livelihood economic index. Generally, the better the domestic people's livelihood economic index, the higher the ability to borrow money from outside.
The US and Japan have high debts, but they are not worried that
The US has a debt of 30 trillion, and Japan has a lot of debts, which has reached 12 trillion. However, these two countries are not worried about debt. There are few people in Japan, but the economic level is very high. Judging from the total value of GDP in 2021, it will take about two years to pay off this debt. But Japan is smarter. When borrowing, it always chooses lending countries with low interest rates. Some countries lend money to Japan, and when they take it back, they solve the interest problem through economic integration and other means. This is equivalent to Japan borrowing money for nothing and not giving a penny of interest.
The United States is not worried because they have the ability to regulate the debt crisis. For example, under the epidemic, the US debt crisis is serious, and the most direct measure they have taken is to increase the speed of printing money and increase the issuance of US dollars on the market.
During the epidemic, the United States suddenly suffered $7 trillion in debt. In order to alleviate the domestic debt crisis, the United States has increased the speed of printing dollars in the US dollar, attempting to use the new dollar to solve the debt problem. However, such behavior will also lead to some bad effects. For example, inflation will be more severe, and the domestic debt crisis will be temporarily alleviated, but it will aggravate in the long run.
Of course, it is not done by printing money. The United States can also attract investors and get funds back by issuing government bonds. The United States will use this fund to fill the gaps and achieve domestic economic balance.
Is China in debt crisis?
According to the amount of liabilities issued in 2021, there is no debt crisis. 8.43 trillion is lower than the warning line given by the international community for a country with a relatively high economy. As long as it is within this cordon, the economy will not fluctuate due to debt problems. China's debt is not high. As long as the people's livelihood economy develops steadily, the debt will be repaid at any time. However, having a little debt can also prove the strength of the economy, so the country will not be in a hurry to pay back the money.
If the country really encounters a debt crisis, it will not use the people's livelihood economy to fill it. At present, there is a lot of foreign exchange in China, and the debt crisis can be resolved through foreign exchange reserves. If a country wants to develop stably and have appropriate debts, it will not have any impact. However, if long-term development is needed, the country still needs certain debt crisis response capabilities. To avoid excessive debt and affect domestic development.
Japan is not anxious about debt problems because many of the debts have been bought by some local entrepreneurs. These entrepreneurs are not short of money. Once the country needs to repay the loan, the entrepreneurs can quickly recover funds.The debts of the United States are also controlled by some local economies, so they are not in a hurry to repay the debt period.
Conclusion
And for China, foreign exchange will play a good role in alleviating the debt crisis. Each country has its own way of dealing with debt crisis, and for ordinary people, there is no need to worry about the country's debt.
Today is hotly discussed: The debt situation of the three major economies in China, Japan and the United States: Japan exceeds 12 trillion yuan, the United States exceeds 30 trillion yuan, what about China?
