It is very common for the American government to issue foreign debts to raise funds to deal with its own fiscal deficit. Because if the United States needs to pay its debts, it only needs to print a lot of dollars, and it does not need to be converted into the currency of creditor countries for settlement. Therefore, the inflation crisis will be passed on to creditor countries. During the epidemic, the United States increased debt issuance to maintain economic growth, made up for the government's fiscal deficit due to insufficient tax revenue from the epidemic, and stimulated domestic demand to maintain the economy.
While stimulating the economy, it also prints a lot of money. To understand the reasons, we first need to understand the financial management concepts of Chinese and American residents. In China, wages are basically paid on a monthly basis, and most people have some savings. But in America, the situation is different. The salary in the United States is weekly, and most people have little savings. Those who have $6,000 in their bank cards are considered rich. Therefore, when the epidemic comes, most people have no source of income because of the government's forced suspension. In addition, Americans themselves don't have much savings, so the government prints money to support the lives of the American people. But this is not a good strategy, and it will be effective in a short time, but as time goes on, the impact of inflation will become more and more obvious.
The United States issued extraordinary bonds to supplement the government fiscal deficit caused by insufficient tax revenue during the epidemic. At the same time, printing a lot of money is also to subsidize the financial crisis caused by the shutdown of most people in the United States during the epidemic. In fact, the U.S. government is relying on the special currency status of the U.S. dollar to pass on the crisis to tide over the world economic crisis.