The United States is the world s largest economic power, so why does it owe so many national debts?

Credit guarantees in the United States are the foundation of a strong American economy. Although the U.S. economy is growing at a rate of less than 3 percent, in fact, the U.S. is more conservative about economic growth, because the U.S. economy has outpaced the U.S. economy. There are no regrets about the hegemony of the dollar.

The euro may compete with the US dollar, but the European debt crisis that preceded the eurozone, combined with the current slowdown in the BRXIT process, has brought about a huge change in the stability of the euro. At the moment, the only potential to compete with the dollar is the yuan, which is still weak at the moment.

So when the U.S. issues Treasury bonds, don't worry about no one buying. Once a large number of people come to buy US Treasury bonds, even if the US foreign debt matures, it will be able to borrow the east wall to repay the west wall, and easily repay the debt. In the end, the United States has never been afraid of bankruptcy because of too high debt.

Because, even if the US Treasury cannot be issued, it will not face the problem of repayment. It's just a matter of printing more dollars to repay the principal and interest. As a result, investors holding dollar-denominated assets were looted.

In 2008, there was a financial crisis in the United States, that is, a credit crisis. The Federal Reserve has launched four quantitative easing policies, and a large amount of money has poured into emerging economies. However, the continued depreciation of the dollar index has hurt countries that hold dollars.

The U.S. economy ranks first in the world. Why are there so many national debts? In fact, the US national debt exceeded 22 trillion yuan because the United States launched wars or frequently increased military spending.

Still, Americans won't suffer from too much debt, because U.S. Treasuries are very liquid and someone will buy them. What's more, the U.S. economy is strong, technologically advanced, and there is no way to pay its debts. In the event of a crisis, the United States** can also take advantage of the dominance of the dollar and pass on the crisis, and the dollar depreciates, on the contrary, it can dilute excessive debt.

As the world's largest power, the United States owes such a large national debt because of its large fiscal expenditure.

The stronger the ability, the stronger the economy, and the more money people have, the more debts they will have, this is a law.

The United States is mainly a military power, and it mainly relies on wars to obtain its economy, so there is no economy in peacetime.

The stronger the economy, the more money is owed, which is also common in today's society.

More than the sum of the top 10 other countries in the world in terms of military spending. It can be said that the United States is borrowing money to distribute benefits to the American people.

Although it is the largest power in the world, the United States has participated in many wars in small countries.

The United States is a democratically elected country, and every session of the first class desperately spends money to "buy" voters.

The United States is the world's economic power, but they are involved in other countries' wars.

Fiscal expenditures are trillions, fiscal revenues are trillions, and fiscal deficits are as high as $760 billion.

I picked up the sesame seeds and lost the big watermelon.

Worried about the depreciation of foreign exchange, it collects some interest on government bonds every year, but the United States uses it to threaten and coerce countries.

Nuclear aircraft carriers, nuclear submarines, military aircraft, warships, etc., are equivalent to being built with very low-interest loans from countries such as China and Japan.

China has not only bought U.S. Treasury bonds, but also bought **, financial**, assets in many industries, other bonds, etc., which is equivalent to a very large support for the US military industry and economy.

There is also a lot of money for private enterprises to enter the United States. Moreover, a lot of personal wealth from the people and officialdom has entered the United States.

Although the total U.S. national debt exceeds $20 trillion, China has directly and indirectly helped to solve a significant part of the overall problem. The total amount of Chinese assets in the United States is huge. He has already been misled and lured into the thief ship.

I wonder if I can get down as soon as possible?

For many years, it has become an indisputable fact that it is the uncle who owes money. If it is said that "the one who owes money is the uncle, then the one who owes a lot of money is the ancestor."

Emaciated camels are bigger than horses, and although their economy is in decline, their scientific and technological and military strength is still indisputably the largest in the world.

This issue is not an ordinary problem, nor is it a problem discussed by ordinary people, even the secretary of the United Nations is helpless about the debt problem of the United States, what can you do, it is better not to participate in the discussion of any cross-border issues, there is no meaning, every country has a leader, and international issues will be dealt with. Don't do irrational things and say irrational things, that's everyone's position.

Like people, dare to go to the bank for a loan, so that there is money to spend.

The poor go to the bank to deposit money to feed the rich.

It is a reason that the United States dares to incur debts.

What is the money.

Why is the United States able to issue tens of trillions of dollars in Treasury bonds without worrying about repayment? To answer this question, it is necessary to understand why the United States issues so many Treasury bonds.

As a super-developed country in the world, it is not necessary for the United States to issue bonds, because its economic strength is the strongest. But the strongest countries are also unable to support the attrition of multiple wars.

During the Clinton years, the United States did not yet face the problem of a fiscal deficit, and the United States still had a fiscal surplus. By the time of George W. Bush, the United States had launched the wars in Iraq and Afghanistan.

During the later term of office of the United States, it launched foreign wars, and the high military expenditure of the war undoubtedly made the United States unable to make ends meet.

For this reason, the United States** can only issue a large number of bonds in order to obtain enough funds to maintain military spending. The U.S. debt has reached $22 trillion. It is clear that it is not possible to pay off such debts in a short period of time.

One of the main reasons why other countries are rushing to buy their bonds is that the US dollar is the most widely circulated international currency.

In the foreign world, the US dollar is generally used as the standard currency, and countries have accumulated more US dollars, and they cannot consume them in their own countries, so they can only buy some interest-bearing bond products.

The stability of U.S. Treasury bonds is good, and the U.S. dollar issuer is issued by the United States, so there will be no crisis of confidence, so many countries are rushing to buy U.S. Treasury bonds.

As for repayment, the United States** does not need to worry about this problem, and it spends $50 million to $60 million in debt interest every year, which it can still afford.

And when a country asks for a large debt to be repaid, it can print more dollars, and the result is a depreciation of the dollar. As a result, it has less debt to repay, and the more damaged countries are the US bondholders.

It seems that this 22 trillion dollars is a lot, and even if the dollar depreciates, it will be difficult to significantly reduce this amount. In fact, those holding countries will not choose to sell US Treasury bonds lightly for the sake of their own interests.

Rather than keep them, it is better to buy a few interest-bearing US Treasury bonds, and the fact that the United States is able to issue so many bonds indicates that its bond sales are booming.

And once the U.S. Treasury bonds cannot be issued, then for their own interests, there will be other countries competing to buy them. The United States will not be the biggest victim.

Do other currencies have a chance to compete with the dollar for central position? It is unlikely that it will become an internationally recognized circulating currency, and it will take a long period of accumulation or a good opportunity. At this point, there is no other currency that can compare to the US dollar.

The bigger a business is, the more debt it can owe. Small real estate companies want to borrow 100 million, but others dare not borrow, but Evergrande Vanke has hundreds of billions of debts. If you think of the United States as the largest corporation in the planetary state, you can understand why it owes so much debt.

In the same way as ordinary investors in domestic investment, international investors also favor bonds issued by strong entities. In addition, the U.S. economy is developed, and domestic enterprises and individuals also have a large amount of investable funds, of which some will also buy U.S. Treasury bonds.

In the era of the gold standard, each unit of currency corresponded to a fixed amount, so each country needed to reserve a sufficient amount of ** to maintain the stability of the currency.

Now, the dollar has become another kind of **, and the world can be said to be the "dollar standard" to a certain extent. Many countries have an exchange rate system linked to the US dollar, and in order to maintain currency stability, it is necessary to reserve a sufficient amount of US dollars in the same way as the previous reserves**.

Reserves of dollars are, of course, to be invested. The U.S. Treasury bonds are denominated in U.S. dollars and don't have to worry about the risk of rising exchange rates, so U.S. Treasury bonds have become the main investment object of U.S. dollar reserves in various countries.