Although the United States has money, it also spends a lot. It needs to maintain an army that can control the world, maintain domestic affairs, support civil servants, engage in welfare and education, and it will cost money anyway.
So where does so much money need to come from? Naturally, it is fiscal revenue such as tax collection. If these revenues are not enough, we can only borrow money. In the past, America's foreign debt was not very high. After the Reagan administration, taxes were reduced, fiscal revenue fell and expenditures continued to rise. What can we do? We can only borrow money to live.
After many tax cuts, Americans naturally borrow money to live, and the country as a whole is heavily in debt. This is really intentional, but it doesn't mean that the whole world is intentional.
However, for other countries, American debt is still reliable as a foreign exchange reserve, because the American economy is the first economy, and it is not a loss to get its debt, so American debt is still quite popular.
The economic aggregate of the United States ranks first in the world. In 20 19, the GDP reached 2 1.4 trillion dollars, but the debt exceeded 22 trillion dollars.
The great cause of the family also has to pay a high price. "Now, although the outer shelf is not so good, the inner bag is also up." GDP refers to the sum of labor and production wealth of a country (region or unit) in a certain period of time, and is usually considered as one of the indicators to measure the economic strength of a country. According to the calculation method of international exchange rate, the GDP of 2 1 trillion dollars is absolutely the first in the world.
Since the economic strength ranks first in the world, there is no so-called "empty shelf", so why borrow money everywhere?
This is because the US government has a fiscal deficit. The so-called fiscal deficit, in layman's terms, is to make ends meet. Data show that in fiscal year 20 19, the US fiscal deficit reached a seven-year high, reaching 984.4 billion US dollars, an increase of about 26% over the previous fiscal year.
In this way, the income can't make ends meet every year, and the debt ceiling is raised every year. Over time, the snowball rolled bigger and bigger, thus reaching and breaking through $22 trillion.
Borrowing the words of Leng Zixing, an antique dealer who looks on coldly in A Dream of Red Mansions, we can get to the bottom of the situation in the United States: "Now, although the shelves outside are not falling down, all the shiny bags are up."
The difficulty is great, everyone is extravagant, and they are all profligate dissidents. Why did the United States become a "poor man" when it monopolized? As Wang Xifeng said, "Everyone is extravagant and is the black sheep." Even if it is guarding a golden mountain, it will not stop tossing.
America earns more and spends more. Military expenditure alone exceeds $730 billion a year, ranking first in the world. In the concept of $730 billion, there are less than 20 countries with an annual output value exceeding $700 billion, and the GDP of the remaining 100 countries is less than the annual military expenditure of the United States.
Aircraft carriers roam five States every day, and large bombers, transport planes and fighter planes run amok in the sky. It's not easy to play, it's all burning money.
Of course, for a country accustomed to a comfortable life like the United States, not only military expenditure, but also other expenditures, such as medical security, civil service expenditure, education expenditure, etc., are as wasteful and extravagant as military expenditure.
There is another institutional drawback in the United States that successive governments can't solve, and that is tax reduction. In previous presidential elections, Democratic and Republican candidates promised to reduce or exempt taxes to win votes, such as Clinton, George W. Bush and Obama. After Trump took office, individuals and businesses cut taxes by 30%.
When taxes are reduced, they are reduced. If the income is not enough, sometimes the US government will have to "close the door". Otherwise, the US government must use the last resort, that is, issue US Treasury bonds!
"The acre of land in the Eastern Province has been rented for several years." No matter how hard the building is, it will overthrow the United States. Is this intentional? Of course not on purpose.
Just like Jia Fu in A Dream of Red Mansions, no one wants to spend it with money and power. It was not until Jia Fu copied it that Jia Zheng, Jia's mother, inquired about the property one after another, only to know that "the acre of land in the eastern province had already eaten the grain rent for the next year", but it was already late.
It is hard to say when the United States will eat food next year, but this debt of nearly $23 trillion is definitely not the final figure.
When Trump came to power, he vowed to solve the debt problem of 19 trillion US dollars at that time. What was the result? In less than four years, it has increased by more than $4 trillion. If you add the 3 trillion printed during the epidemic, it will be 7 trillion.
With this momentum, even if Trump continues to be president, can he solve this $26 trillion debt problem? If Trump steps down, how much energy and ability does the 80-year-old man have to ask about this matter, but he just continues to follow Trump's path.
Gross domestic product (GDP): refers to the sum of all final products and services produced by all permanent units in a certain period of time in a country (or region), and is often considered as an indicator to measure the economic situation of a country (or region).
In terms of GDP ranking, the United States has long been the first in the world. This represents that the productivity of the United States is indeed at the leading level in the world. Then why does the United States borrow money from other countries through national debt?
American debt:
According to the maturity of bonds, US Treasury bonds can be roughly divided into three categories: short-term treasury bonds (T-Bills), medium-term treasury bonds (T-Notes) and long-term treasury bonds (T-bonds). In addition to local investors, countries around the world can also buy US Treasury bonds. In previous years, the average issuance of US Treasury bonds was $500 billion to $600 billion per year.
Many small partners will have this question. Why does America borrow money?
There is an important knowledge point to understand here: income = income-expense.
As can be seen from the above table, the fiscal revenue of the United States is also the highest in the world, but why borrow money?
Because: there is not enough money. The United States has a perennial fiscal deficit, and its fiscal expenditure ranks first in the world. In addition, it must repay the previously issued national debt. What if the money is not enough? We can only issue new bonds to borrow money.
If the United States does not issue new debts, can it? Theoretically, there are two ways: cutting expenses or raising tax rates. But it's not practical, so we have to take it slowly.
I sincerely answer you: the United States deliberately borrowed foreign debt, but you still "can't do without borrowing." You said it would be "irritating" if you didn't. I don't want to say more about the strength of America. Military affairs, economy, culture and science and technology are all current world champions. Since the disintegration of the Soviet Union, the United States has become the only world champion, which is a mixed blessing.
The question is, the world champion America has a lot of money, so why borrow money everywhere to live? Why should others lend it to him? He still won't pay it back? Let me analyze it briefly:
When did America's GDP become the first in the world? I guess you don't believe that the United States changed from an agricultural country to an industrial country in 1884. At that time, we were in the period of backwardness and beatings in the late Qing Dynasty, so we were embarrassed to compare. Ten years later, 1894, the United States surpassed Britain and became the largest industrial country in the world.
As early as 19 14, the gross national product of the United States has exceeded the sum of Britain, France, Germany and Japan. During World War II, the economy of the United States was stronger, and the United States supported more than 50% of the strategic materials of the Allies. In the four years since the outbreak of World War II, the United States has produced a total of 147 aircraft carriers. From 65438 to 0943, the United States produced 40,000 planes a year, all because the United States had money.
In 20 17, the GDP of the United States was $65,438 +09.3 trillion, and it remained the largest economic power in the world. The United States has continuously ascended the throne of GDP, leading other countries in the world 123 years. In 20 19, the total GDP of the United States was close to $265,438 +0.43 trillion, which was $7 trillion more than the second place.
The United States is so rich, why should it borrow money to live? The GDP of the United States is about $20 trillion a year, but the fiscal revenue is not so much! The fiscal revenue of the United States in 20 19 was $7 trillion, but it pointed out that it actually reached $8 trillion. It seems that money can't be squandered!
There are also many places in the United States that spend a lot of money. For example, the military expenditure has reached more than 700 billion US dollars, and a large number of office workers have to be raised, as well as various membership fees (the most in the United States) and various domestic welfare guarantees. In any case, the old United States can't make ends meet every year, and the scale of various foreign debts in the United States has reached a record $26 trillion.
America's fiscal deficit is like this every year. You don't have to worry about too much debt anyway. I have no choice but to borrow foreign debts.
Why are others willing to lend money to America? It is easy to understand that the United States issues foreign debts. To put it bluntly, my family has no money, and borrowing money from others is a good life. But why are others willing to borrow American debt? That's all the questions. I will tell you the truth for the following reasons:
1, the United States is strong, and the hegemonic position of the US dollar in the world causes everyone to need the US dollar, because the world's commodities only recognize the US dollar.
The United States has maintained a trade deficit for many years, and some countries, like the United States, have exported a lot of goods and got a lot of dollars. However, these dollars can't buy a lot of American goods, only American debt, and they can also preserve their value.
3. Because American Treasury bonds are liquid and safe, they can be appreciated to make money, so everyone bought them.
For example, at present, we hold the most American debt, and we have a lot of dollars in our hands, but we can't buy any advanced American technology, so we have to invest in American debt to preserve and increase the value. In fact, everyone's behavior is to support the economic development of the United States in disguise, but there is no way out. Who calls people strong, and who calls the dollar a universal product?
Why did the United States borrow money on a large scale? Everyone has another question. America sent us so much money. If we let him pay back the money together, won't America go bankrupt? According to our words, the United States is heavily in debt, and it never wants to pay off all its debts at once.
Americans have never considered paying off all their foreign debts, because they have a trick-as long as the dollar index depreciates, the foreign debts owed by the United States will grow hairy, and the rights and interests of creditors who buy US Treasury bonds can be diluted. The United States has never paid off its debts, but it has never paid off its huge foreign debts.
In fact, in the final analysis, it is still old and powerful! Imagine how many countries in the world dare to really turn against the United States. With the Soviet Union gone, the old United States has nothing to hide. On the other hand, the United States can influence the economies of other countries through American debt, and we have to admire the advanced gameplay of the United States.
Finally, I want to say that this is a concentrated expression of dollar hegemony, but there is nothing you can do, because everyone can't live without the dollar. You want to buy oil, gold and all kinds of commodities, but people only recognize dollars! However, in recent years, the RMB is gradually going to the world, and I believe that in the near future, the hegemonic position of the US dollar will be subverted. If one day America's comprehensive national strength fails and the world champion is gone, I don't think his lifestyle of living by borrowing money can go on.
In 20 18, the GDP of the United States reached $20.5 trillion, ranking first in the world and far ahead of China 13 trillion. However, we find that the size of US national debt is as high as 22 trillion, and the annual interest expenditure in the United States is 520 billion dollars. So, some netizens asked, why should the United States borrow money everywhere when its GDP is so high? Is it intentional?
GDP refers to the total wealth of a country's labor production in a certain period of time, and is usually regarded as an indicator to measure the economic situation of a country (or region). The more U.S. national debt is owed, the more it is, mainly because of the fiscal deficit of the U.S. government. In 20 18, the US fiscal deficit was as high as 1 trillion dollars. Simply put, it means that we can't make ends meet, and we can only get approval from Congress every year to continuously raise the debt ceiling. As a result, the debt scale of the United States is snowballing.
First of all, this is also a necessity for the United States to borrow money from the world. On the one hand, since the Reagan administration, large-scale government tax cuts have begun. In the Trump era, individuals and businesses decreased by 30% and government revenue decreased. On the other hand, the U.S. government spends a lot of money, including 800-900 billion U.S. dollars in military spending, medical security and education spending, and a large number of civil servants, which will cost money anyway.
Furthermore, which country in the world has no national debt? The key is a question of degree. The GDP of the United States has reached $20.5 trillion, ranking first in the world, which represents the advanced productivity of the United States. Although countries like Russia and Venezuela are selling US Treasury bonds. However, most countries still believe that US Treasury bonds are the most creditworthy in the world. Therefore, it is not the United States that wants the world to borrow money, but the United States issues government bonds that cannot be sold. Since some people still buy bonds, the United States is certainly willing to issue bonds to help its economic construction and social development.
And many people think that US Treasury bonds are mainly purchased by some sovereign countries. In fact, 70% of US Treasury bonds are purchased by its own financial institutions, the Federal Reserve, enterprises and residents. Other countries such as China and Japan are also major holders of US Treasury bonds. On the surface, the risk of US Treasury bonds exceeding GDP is great, but in fact, the holders of US debt are mainly financial institutions on Wall Street. Therefore, it is unlikely that other countries will concentrate on selling US debt and have an impact on the US economy. If you throw it out, American financial institutions or other countries will buy it immediately.
Finally, in the face of the rising scale of US debt, Trump has stated that he will pay off all debts before the end of his second presidential term. Trump's confidence mainly comes from the successful development of new energy shale oil. The United States has a large reserve of shale oil. To this end, the United States has become the largest producer of international oil. In addition, the United States has a large number of enterprises that can produce high value-added goods (such as Apple, Qualcomm, Intel, etc.). ). Although the size of US national debt exceeds GDP, it is still possible to really reduce the debt scale to a reasonable area.
The high GDP of the United States shows that the country is rich, but the American government is not necessarily so rich, and it often makes ends meet, so the United States borrowed money from abroad unintentionally. At the same time, most countries with bad reputation in the world are also issuing treasury bonds, and the United States is certainly more capable of issuing treasury bonds to help its own economic development. More crucially, most financial institutions holding US Treasury bonds are local financial institutions and residents in the United States. Therefore, as long as the United States controls the debt scale, it will not worry about repaying the debt.
The answer is: the GDP of the United States ranks first in the world all the year round. In 2006, the GDP of 5438+07 was $0/9.3 trillion, and the per capita GDP was more than $50,000. Then why does the American government, which is already so rich, borrow money from domestic (American taxpayers) and foreign creditors all the year round?
Crazy Trump
The U.S. government didn't mean to do it, but what it couldn't help doing was really aimed at the Federal Reserve. The huge foreign debt of the U.S. government shocked the American people and countries all over the world? This is mainly because:
1, a bad habit developed by the American government and people all the year round: low savings and high consumption. Use the money that has not been earned in the future to realize today's various consumption desires and dreams.
American debt: one of the weapons of the Federal Reserve.
Americans learn from the American government in their consumption concept, which is what China said. This is mainly because in the 1970s, under the careful planning of the Federal Reserve, the Federal Reserve rebelled and controlled the Nixon administration in the United States, and signed and abolished the brinton Woods Agreement, which pegged the dollar to gold.
American debt: taxpayers' nightmare
Since then, the US government has completely lost the right to issue and control US dollars and national debt. The U.S. government has continuously broken through the debt warning line accounting for 40% of GDP and the debt red line accounting for 60% of GDP. Now, the total internal and external debt of the U.S. government has exceeded 2 1 trillion dollars, accounting for about1/o% of the U.S. GDP. Moreover, in order to maintain the status quo, the US government must keep borrowing money to live. As long as the US government exists, it can't escape from the clutches of the Federal Reserve.
Former and current chairman of the Federal Reserve
2. The U.S. government has been firmly controlled by the Federal Reserve and forced to ride a tiger. The relationship between the U.S. government and the Federal Reserve is a political and monetary relationship that uses each other.
The Federal Reserve is related to the US government in form, but has nothing to do with the US government in content. This is mainly because the chairman, vice-chairman and Committee members of the Federal Reserve are related to the US government and Congress in the process of appointment and formation, but the referees and nominees of the main members of the Federal Reserve are decided by the main shareholders of the Federal Reserve.
Federal Reserve Building: the Nest of American Debt
The full name of the Federal Reserve is the Federal Reserve Board of Directors. It is the "four unlike" of joint-stock private holding jointly controlled by several private banking groups in the United States and Europe. The Federal Reserve is neither a financial institution of the US government, nor a federal central bank, nor a corporate enterprise, nor a private dollar printing house. The Federal Reserve is actually a private central bank and financial management joint-stock company.
American debt: the risk is huge.
3. Most of the money borrowed by the American government is spent on foreign military aggression and military bases, while only a small part of the money used for domestic military expenditures such as weapons and equipment research and development and large-scale procurement is used for people's livelihood.
Most American military enterprise groups, military research institutions, military outsourcing enterprise companies, military think tanks and consulting companies, the Ministry of National Defense, the headquarters of various services and arms and other military-related senior government officials are inextricably linked with the American Wall Street financial consortium, the American Jews and the European Jewish financial empire.
American Aircraft Carrier: One of the Users of American Debt
Most of the money used by the US government for military expansion and aggression, as well as military-related financial expenditures, come from various domestic and foreign debts issued by the US government. American military hegemony and debt bottomless pit are a pair of evil brothers, which will always be a nightmare for the American government and people, because it is impossible for the United States to forever strong.
American Warrior: One of the nike blazer of American Debt.
To sum up, the American government and people are indeed strong and rich on the surface, but in fact they are heavily indebted and overdrawn. Once the United States leads to a major economic crisis because of major economic mistakes, it will inevitably directly affect the rapid decline of American military power, and American world hegemony will soon come to an end.
America is a belligerent country. It can be said that it is invincible all over the world. Many countries have been destroyed by the United States and are at war. It plundered the wealth of these countries and continued to send troops to engage in civil wars in these countries. Naturally, its military expenditure is higher. There are many countries where they live, so-called international police. The countries where they live don't pay enough protection fees, and some don't want to pay them, resulting in insufficient military spending. Coupled with the high consumption of its aircraft carrier group, the state treasury is in deficit and can only borrow money.
For example, a boss opened a big restaurant. In fact, he couldn't afford all the expenses of the restaurant, so he borrowed it. After making money, he can repay the principal and interest to others at first. Because of his profligacy, the restaurant couldn't survive, so he had to lend money to others again. Seeing that he owns such a luxurious and huge restaurant, he is lucky to think that he can afford it! Lend him money and save it. Don't you know that his restaurant is going to close down? Tell you the most important thing, this boss is the biggest boss in the underworld! Need people, want guns and guns, support him with your money, you can't take him. Therefore, creditors, hurry up and refine their own people and build their own guns, or they will eat for nothing forever!
Whether intentionally or unintentionally, the debt ratio in the United States is already very high. As of April this year, the total size of US Treasury bonds reached 24 trillion US dollars, a record high. The economic prospects of the United States have deteriorated sharply recently and become extremely uncertain. The outbreak of COVID-19 destroyed communities in many countries, including the United States, disrupted economic activities and greatly affected the global financial situation. American debt is an untimely bomb, which is getting worse and worse!
The outbreak of COVID-19 made it possible for the Fed to buy more long-term bonds to keep the yield of long-term treasury bonds low. In the United States, the government issues bonds, while the Federal Reserve prints dollar bills. The American government is short of money and cannot solve the deficit caused by government expenditure by printing money. It raises money by issuing government bonds. The issuance of currency by the Federal Reserve can only make it easier to buy and sell bonds issued by the government, because public bonds are the reserve assets of the Federal Reserve currency. In addition to discounting, most of the money issued by the Federal Reserve relies on open market operations and the purchase of government bonds as reserve assets.
America borrowed so much, why didn't it collapse? Because people all over the world support them through dollar hegemony. People who don't obey are punished, subverted or solved by force, etc., which really hurts the whole world.
The American government sometimes needs to do things and money. What can we do? We can only issue government bonds to meet the needs of government operation and government affairs. Even if the national debt is issued, it must go through Congress, but it is a little less difficult than adjusting monetary policy. More importantly, according to the behavior of the United States in the world over the years, especially the strong position of the US dollar, it seems that issuing national debt is the money owed by the United States. In fact, this money plays a huge role in helping the United States develop its economy, and the United States may adjust the exchange rate of the US dollar through policies, so as to maximize the interests of the United States in the fluctuation of the US dollar. Especially in such a major event as the financial crisis, the United States can always transfer the crisis to other countries, and transfer the losses and risks to other countries, with the least losses borne by itself. This is the reason why dollar hegemony is shameless.
The United States obtains global wealth by issuing bonds, which is even more terrible in times of crisis. Because if the United States uses these to buy cheap goods from other countries because of the falling exchange rate, it is equivalent to lending money to other countries to buy their cheap goods.
Today, Libyan and Syrian refugees have not been properly resolved. The United States is a shopkeeper who cuts hands and sets fires, regardless of fire fighting.
The United States went into battle shirtless and plundered our corporate property in the United States by means of no reason, no lower limit and no morality. Tiktok's overseas version of Tiktok is a living example.
The United States detained our citizens in Canada through lackeys for no reason, and joined hands with HSBC to frame and frame Ms. Meng Wanzhou, CFO of Huawei. The fundamental purpose is to plunder Huawei's core technology and eliminate China's high technology in the development stage.
The United States has blatantly instigated other countries to suppress China's high-tech enterprises, shamelessly cut off the supply of related products, and has no scruples about its so-called freedom and democracy advertised in the world for many years, in an attempt to stifle China's high-tech development. This is a naked shameless person!
The US government issues bonds, not just the 24 trillion bonds bought by the Federal Reserve, but only a small part, about 5 trillion. Except for foreign exchange reserves, most other public bonds are held by American institutions and nationals. The largest creditor: China, the second largest creditor: Japan, the third largest creditor: Brazil, the fourth largest creditor: Ireland, and the fifth largest creditor: Britain. From June 2065438 to June 2009, China relinquished its position as the first overseas holder of US debt, and Japan took over this position. The Federal Reserve has become the biggest buyer of American debt.
If the Federal Reserve is allowed to issue more money and absorb all bonds issued by the government, it will be forced to issue more than $ 2. 1 trillion in bonds. Now, the Fed has issued $4.5 trillion, and if it issues more, it will be completely closed.
The top five creditors "joined hands" to throw debts together. Since the beginning of this year, many countries have increased their efforts to reduce their holdings of US debt, the most representative of which is Russia, which "emptied" US debt. Since then, Turkey has followed Russia's footsteps and withdrawn from the list of major debtor countries.
During the COVID-19 outbreak, the prospects of the US economy were very worrying. It is expected that the epidemic will continue to curb economic growth and impact the financial system. Deficit means borrowing money to make a living, and borrowing money means paying interest to creditors. Whenever the new fiscal year comes in June+10, 5438, the federal government's budget will always expand, and the scale of borrowing will also expand, that is, the debt ceiling will be raised. Whenever the Treasury Secretary carefully submits a demand list to Congress, the two parties will not vote for it without fighting for 300 rounds. There is no government, no money to spend, and all departments of the federal government have to close. Many times in history, closures occurred around 10, 1.
Motherland, come on, speed up the digitalization and internationalization of RMB! People all over the world unite to end the evil dollar hegemony!
Inadvertently, although the GDP of the United States is high, Americans like to spend like crazy. They spend money and then borrow it, so there is a phenomenon of borrowing money all over the world. In fact, the United States only answered a sentence from our countryside: the horse manure is shiny outside and there is a bag of bran inside.