In 2021, the United States, as the world's largest economy, has a total GDP of up to 22.94 trillion US dollars. China, ranked second, has a total GDP of about US$16.86 trillion, and Japan, ranked third, has a total GDP of about US$5.1 trillion.

In 2021, the United States, as the world's largest economy, has a total amount of GDP up to 22.94 trillion US dollars. The total GDP of China's second-ranked is about US$16.86 trillion, and the total GDP of Japan, third-ranked is about US$5.1 trillion. The total economic output of the United States is slightly more than that of China, which ranks second in the world and Japan, which ranks third in the world. Even the total economic output of the EU , which was composed of 28 member states before Brexit, was only about 89% of that of the United States. However, the United States, which has the largest economic output in the world, is also a debt-in-debt country. The latest data released by the U.S. Treasury Department shows that the size of the U.S. debt has exceeded $31 trillion.

Speaking of the debts in the United States, it can be said that it has become popular from the government to the people. The vast majority of people in the United States are moonlight tribes who do not save money. The first thing an American family does when they receive their salary every month is to pay various bills. After paying back the account, the salary is almost gone, so you can only use a credit card to pay for your daily expenses next month. Ordinary Americans are used to this type of lending and consumption lifestyle, and the US government has set an example for the people in debt. Today, the US debt scale exceeds its total economic output.

In fact, the United States has been in debt for more than 200 years since its independence and founding: during the War of Independence, European powers such as France, Netherlands , and Spain all provided a lot of assistance to the United States. But these aids are not all free aid, but are provided by a considerable amount of loans. After independence, the United States has suffered more than $77 million in various debts. You should know that American independence was in the late 18th century and early 19th century. You might as well recall how much the price level was different from today’s today. So what would it mean to put more than 77 million US dollars more than two hundred years ago today?

The federal government at that time had a headache when it saw the bill of more than 77 million US dollars. The most troublesome thing is the Secretary of Finance who is directly in charge of finance, but as soon as Hamilton took office, he publicly stated: If the debt is properly operated, it will be a blessing! During his tenure, Hamilton basically used more than $77 million in the U.S. government’s debt as a Rubik’s Cube. He first expressed his opinion to all the creditors: I am not a buddy, I will be dependent on my debts. But I really have no money now. Even if you always beat me to death, I still have no money to pay you back. But if you lend me some more, I will have no money to pay you back.

If you were the creditor of the US government at that time, would you have the urge to suck people with a big mouth? I have seen a scoundrel, but I have never seen such a shameless person - I haven't paid back the old debt yet, and I actually want to borrow new ones. Is it a shame for you? Hamilton didn't get slapped. In fact, he has a complete set of logic: If I can guarantee to pay off the principal and allow you to earn interest, then do you borrow or not? At this time, the creditors weighed the whole thing: Anyway, I won’t pay for this guy to kill him. Since you can guarantee to pay me back with the capital and the profit, I will see how you make trouble.

However, there is a prerequisite for borrowing money, and you need to have a good loan credit and do not make promises in vain. Now I have clarified my idea: to repay the debt, you need to borrow first, and to borrow money, you need to build credit first. If credit is to be established, the U.S. government must have a stable income and financial system. This system makes debt not only not a burden to drag down American development, but will also become a blessing to support the operation of the country. Since then, the United States has gradually developed a long tradition of debt owing, and the scale of debt in the United States has become increasingly expanding as it goes.

Why don’t the United States begs so much debt, can’t you worry about not being able to pay it back? In fact, I have never been worried. Look at how many big bosses like Jack Ma and Wang Jianlin have no debts in real life, but we ordinary people have no debts. Not to mention that the United States is only in debt of 31 trillion now, even if it is in debt of 131 trillion, it will not default under the current circumstances. The US debt repayment model is actually "using debt to support debt." It is true that the United States owes nearly 30 trillion yuan in debt, but the United States does pay off its debts on schedule every year. The way the United States repays debts is to continue issuing Treasury bonds and then use the borrowed money to repay the due debts.

Some people would say that this practice of borrowing new money to repay old debts is equivalent to demolishing the western wall and repairing the eastern wall? But if you think about it carefully, is the practice of the United States similar to the banks we come into contact with in real life? Although the money we ordinary people have in the bank is called deposits, it is actually similar to what we lend to the bank. Banks will lend out the money to create profits. The bank gave us a certain interest from Lin Run, and the remaining income belonged to the bank. Have you ever seen any bank pay off the bank’s money? In fact, banks will continue to absorb deposits and lend them to generate profits.

The US Treasury bond operation model is actually equivalent to a World Bank : Everyone saves and withdraws money in it. As long as everyone does not ask for cash withdrawal on the same day, then the United States can completely demolish the east wall and repair the west wall when its foreign debt matures. When some people hear that the debt scale of the United States is as high as 31 trillion yuan, they yell to ask the United States to pay back the debts owed to countries around the world first. This logic is like a depositor yelling in the bank hall to get the bank to pay back the money. The United States does this in fact, using the form of government bonds to absorb funds from countries around the world for its own construction.

When the debt of one of the countries expires, it is repaid with money borrowed from other places. This actually forms an uninterrupted and sustainable cycle. This is of course an act of cutting leeks from the whole world. Of course, it is not wrong if you accuse the United States of being a shameless vampire for this. But the question that follows is that other countries are so stupid that the United States is trying to cut leeks from itself? So everyone think about this question: Are capitalists vampires to workers? The profits of capitalists undoubtedly come from the surplus value of workers.

Since workers are exploited by capitalists, why do workers still work for capitalists? This is because even if a worker knows that he is the object of exploitation, he has no other way to support his family except to work. Similarly, other countries cannot avoid such a fate even if they know that they are being cut by the United States. The United States is the largest economy in the world today, the global financial technology center, and the country with the strongest military strength in the world. Under the Bretton Woods system, established in 1944, the US dollar is directly pegged to gold, while other currencies in the world are pegged to the US dollar, and the US dollar is the settlement currency for international transactions.

oil crisis in the 1970s led to the end of the Bretton Woods system, and then the United States established a US dollar oil trading system in a timely manner as a substitute. After the US dollar decoupled from gold, it found the hard currency of oil settlement, thus ensuring that the US dollar continues to maintain its dominance in the international trade settlement currency. Since the end of World War II , the United States has made the US dollar the most important international reserve and settlement currency with its political and economic hegemony. The US dollar, which was initially an international reserve and settlement currency, was pegged to gold, and after being decoupled from gold, it was tied to oil.

USD This hegemonic status is determined by the United States' super status in the world economy and the United States' comprehensive strength in politics, military, technology and other aspects. Today's world can be said to be the "dollar standard" to a certain extent. Many countries implement an exchange rate system that is linked to the US dollar, so in order to maintain the stability of the currency, it is necessary to reserve a sufficient amount of US dollars like before. In today's international trade , the US dollar is currently the most important settlement currency. The strong and issued Treasury bonds in the United States are denominated in US dollars. Don’t worry about the exchange rate risk of .

Therefore, US Treasury bonds have become the main investment target for US dollar reserves in various countries. The United States, which holds the hegemony of the US dollar, has no worries about issuing Treasury bonds. Once everyone is like this, the United States becomes a global bank. The United States, which holds the hegemony of the US dollar, can issue currency exclusively, and countries around the world have become customers of this bank, and depositing and withdrawing money are all completed in the United States, a monopoly bank.Now some countries that are aware of this problem have begun to to , but at least so far the hegemony of the US dollar has not been fundamentally shaken.

Now many people on the Internet are saying that the credit of the US dollar is declining and the dominance of the United States is declining. The most exaggerated self-media marketing html No. 2 says that more than 50 countries, including American younger brothers like Israel and the United Kingdom, have begun to de-dollarize. This means that the hegemony of the US dollar is in jeopardy. In fact, Israel has indeed reduced its holdings of the US dollar and increased its holdings of the RMB. In Israel's central bank's foreign exchange reserves, the RMB still accounts for only 2% of its holdings after the increase, while the US dollar still accounts for 61% of its holdings after the reduction. Collected by these more than 50 countries participating in the de-dollarization, they only have to reduce their holdings of US dollars.

Many people imagine that the depreciation of the US dollar did not occur. In fact, the US dollar has been rising for a while. The hegemony of the US dollar is indeed shaken compared to before, but it is an exaggeration to say that the hegemony of the US dollar is in danger. Now our RMB has gone abroad and has become one of the mainstream currencies in the world. In the future, the RMB may challenge the hegemony of the US dollar, but so far the RMB accounts for only about 3% of international trade. The end of the so-called hegemony of the dollar will be a long process, not coming soon as some people boast.