Not to mention a debt of $3 trillion, that is, a debt of $13 trillion, and the United States has no panic and doesn't care at all. It is often said that the uncle is in debt, then the United States is the uncle among the uncles! When you understand the way the United States treats its foreign debt, you will scold it shamelessly and even want to slap it now. The mode of American debt repayment is very simple, that is, the United States owes 3 trillion foreign debts, but it does pay back the money every year. The way it pays back the money is simple: it continues to issue government bonds, continues to borrow money from other countries, and then uses it to pay off the foreign debts it has received. Does this sound familiar? That's right, that is, "paying debts with debts", and there are many ways to repay credit cards with many people.
This is basically robbing Peter to pay Paul, and because foreign debt bears interest, it will only lead to more and more money in debt. Many people who use credit cards to storm thunder will eventually storm thunder because of "supporting debts with debts". Then the U.S. government is also paying back the money in this way. Aren't you afraid of thunder one day? Really not afraid. As long as the dollar is the dominant currency in the world, the United States will never be afraid of debt storms. Why can the United States "support debts with debts" and not be afraid of the final outbreak? The dollar is the dominant currency in the world, and most of the world's trade settlement and share are settled in dollars. This leads to one thing: almost all the government bonds in the world are storing dollars and buying US government bonds.
like our country, the foreign exchange reserves are more than 3 trillion dollars. The US debt held also has more than $1 trillion. This foreign exchange reserve and American debt are prepared for the convenience of settlement when doing business with others. The greater the economic power, the more it needs to reserve American and American debt. This provides a great convenience for the United States: to a certain extent, it can issue government bonds at will. Anyway, there is a country to take over, so don't worry about not being able to borrow money. Then the U.S. government can issue government bonds at will. No money to spend? It doesn't matter, issue government bonds. The debt is due? It doesn't matter, issue government bonds. There's going to be a war. No money? It doesn't matter, issue government bonds. It can be said that America is a bit like a vampire. It can be so rich, all by sucking the blood of other countries in the world.
America's prosperity is based on sucking blood from the whole world. For the whole world, America is a vampire. Absorbed themselves and impoverished the whole world. Moreover, recently, the Federal Reserve began to raise interest rates continuously and substantially, and started a new round of wealth harvesting. The essence of capital is profit-seeking. The Fed's interest rate hike will cause a large outflow of domestic capital in many countries. What kind of consequences will this cause? Some countries that rely entirely on foreign capital investment to maintain economic operation will be on the verge of collapse. With the withdrawal of foreign capital, domestic capital has also flowed out, so if there is no money in the domestic market, the economy will be in a state of stagnation. If the economy does not grow and cannot provide jobs, it will bring a large number of unemployed people. Increase the cost of society and increase social instability. If we study the Fed carefully, we will find that the interest strategy of the Fed is a ten-year cycle. First, interest rates were cut, and a large amount of capital entered other countries. After fattening, we will start harvesting wealth. The Fed's interest rate hike has plunged many countries' economies into crisis. The United States is almost a "robber" to the world. It has enriched itself and suffered the whole world.