The impact of the U.S. debt crisis on China s economy and how should China deal with it?

The U.S. debt crisis, the United States' approach is to pass on the crisis, as for who to pass on, who suffers the most, Caijing Langyan has already said, we China has suffered the most, is the internal injury, but the country has always wanted to use a soft landing to solve the problem, the current Chinese economy has fallen into stagflation, there is no way to solve it, for the United States, we are a lamb to the slaughter, meat on the board, people want to do what you want to do with you. If you have money, I suggest you immigrate quickly, if you don't have money, I suggest you exchange your spare money for dollars, but don't put it in the bank, put it at home, otherwise you won't be able to withdraw it in the end, I seem to smell the day when the yuan depreciates sharply.

The impact of the U.S. debt crisis on China's economy is mainly in the following aspects:

1. China holds a large number of U.S. Treasury bonds, and once it defaults, China's assets will shrink;

2. Kidnapping China, for a period of time in the future, the United States can only repay its debts by borrowing new ones to repay the old, to put it bluntly, it will continue to issue bonds, and then repay the previous arrears. If no one buys U.S. Treasury bonds one day, the United States will default, and the assets of most countries in the world will shrink, so an endless cycle will be formed, even if China knows that it can no longer buy it, it will have to buy it, and it can only awkwardly maintain that the bubble will not burst. This is also one of the basic reasons why the global ** fell sharply after the downgrade of the U.S. Treasury rating;

3. The Federal Reserve has made it clear that it will continue to print money, the depreciation of the dollar seems to be a foregone conclusion, the RMB is pegged to the US dollar, and China seems to have no choice but to print money, and the possibility of inflation increases;

4. The world's commodities are denominated in US dollars, and once the US dollar continues to depreciate and cause selling, it may lead to the collapse of the world's monetary base, and the consequences are unimaginable. But what is certain is that the dollar collapses, and China cannot be immune;

5. From a micro point of view, a large number of foreign trade and processing enterprises have increased the risk of bankruptcy, but domestic trade, real estate and other industries still have a lot of room for regulation and control, so survival should not be a problem.

Because there are regulations for American banknotes:

In the United States 197x for many years, after the decoupling of the US dollar and **, the United States adopted a policy of credit currency, because the ** quantity is small, and economic development needs more currency. Therefore, it is necessary to decouple and adopt the method of pegging currencies and government bonds, instead of **. In order to prevent too many Treasury bonds from being issued, that is, too much money being printed, and becoming inflationary, the US Congress has stipulated that the Treasury bonds issued must be within the percentage of GDP.

Other countries use a neutral method to issue money, that is, it is not necessarily pegged to government bonds).

Now, because the United States has no money to pay off its expenses and needs to repay interest to countries that previously bought government bonds, such as China, and in the past, when the economy was good, the money came from taxes or investment, and now the economy is not good, and the taxes are small. That is, the expenditure of ** is greater than the income, so the US Treasury has no money to pay wages and interest to employees, and at this time, ** needs money, and where does the money come from? The Treasury Department then needs to issue Treasury bonds, and then take the money from abroad (US dollar foreign exchange savings) or the Federal Savings Office (printing money) to repay employees.

At this time, since the US dollar previously issued by the United States has reached the upper limit set by Congress, if it is to be reissued, it must be voted on by the Republican Party and the Ming Party in Congress. And the Republican Party told Obama that he needed to cut his spending before agreeing to raise the amount of Treasury bonds that could be issued, and Obama didn't want it, so now it's this kind of problem.

Then, if you can't repay the interest, then the U.S. national debt assessment will be **, and then it will cause China, the creditor, to be unable to recover the money.

Hello: The impact of the debt crisis on our country is mainly in the external world. On the one hand, the consumption of European and American residents will decrease; On the other hand, the currencies of European and American countries will depreciate, which further reduces the willingness of European and American residents to consume, forming a vicious circle.

The impact on the world is mainly concentrated in developing countries, and if the citizens of Europe and the United States, the largest consumer group, reduce consumption, the economies of export-dependent developing countries will be hit hard, which may lead to global deflation. In terms of the virtual economy, the debt crisis has taken a toll on the global** market.

The impact is very large, and it will fall below the bottom of the 2008 financial crisis in the short term!

Very large, if the United States defaults on its debt, the global ****.