According to data released by the U.S. Department of the Treasury, the total amount of U.S. national debt has surpassed the $36 trillion mark.
The U.S. national debt can be said to be the highest national debt in human history and is currently the fastest-growing national debt. This is why Musk previously stated that the U.S. government is on the path to bankruptcy.
The so-called world currency, to put it bluntly, is something that can be used to purchase the vast majority of goods worldwide, whether it's rubber from Southeast Asia, steel from Australia, luxury goods from France, or industrial products from China. As long as you have dollars in hand, you can buy the products you desire. With the rise of China, we have the qualifications to force the U.S. to sit down and calmly discuss countermeasures from a position of strength and status.
U.S. debt is not fatal, but continuous deficits are a significant problem. A decline in market confidence in the dollar will shake the position of the dollar and U.S. debt as the cornerstone of financial weapons, further reducing the profitability of financial dollars. This is a death spiral. It's slow, but it can't be stopped at all.
Both the dollar and U.S. debt are debts, debts owed to everyone in the world. The over-issuance of dollars has already pushed the world to the brink of endurance, and U.S. debt is equivalent to a second round of debt secured by dollars.
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Some may argue that Japan is the largest foreign holder of U.S. debt, and as long as Japan continues to purchase newly issued U.S. debt, there will be no problems with U.S. debt.
Japan's continued purchase of U.S. debt is a complete misjudgment of the subsequent economic situation. It is not for the U.S. that you should know that 90% of Japan's foreign exchange reserve assets are U.S. debt. To put it bluntly, Japan's previous large-scale purchase of U.S. debt was actually unwilling in its heart.
From Japan's perspective, the price of Japanese industrial products has become cheaper due to exchange rates, exporting deflation to the U.S., which has also alleviated U.S. inflation to a certain extent. It can be said to be a win-win situation.
But what about the reality? Due to Japan's proactive exchange rate devaluation, it is exhausting all the subjective initiative it can take in economic policy, the last strategic redundancy.
The current U.S. debt system is an unprecedented barrier lake, and the U.S. debt held by Japan is an important pillar. If Japan drops the burden, the U.S. debt system will really collapse.
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