Why is the U.S. debt as high as $37 trillion, can still afford 11 aircraft carriers? in fact, we are all fooled, the U.S. debt of $37 trillion, is no longer an astronomical number, is a cosmic number. a country, the debt is about to catch a quarter of the global GDP, is still stable when the local in the world planted warships, especially that 11 nuclear-powered aircraft carriers, a one-on-one to your doorstep, who watched not feel magical?
The United States owes a mountain of debts, as large as 37 trillion yuan, but its warships are still wandering around, especially those aircraft carriers. Owing so much money, how can you still hold up a big naval battle? Is the whole world wiping its ass?
By the end of August this year, the total amount of U.S. debt has reached $37.2 trillion, this scale accounts for almost a quarter of the global GDP, no one feels to breathe.
The key lies in the dominance of the dollar, which accounts for half of the world's international trade, and which countries have to hoard as reserves, even if the trade has nothing to do with the United States. This has made US Treasury bonds a hot commodity, with foreign investors holding more than 9 trillion share, because it is regarded as the safest financial tool.
Every time an old debt matures, the Ministry of Finance issues a new debt to take over, not only paying off the old debt, but also paying out more money to spend. Debt due this year accounts for about a quarter of the total, but with US dollar credit, there are always new buyers coming to our door.
Interest spending is expected to be $1 trillion this year, exceeding military spending to be the government's number one spending, but this has not stopped military spending, and the defense budget has risen to $900 billion, 40% of which is spent on arms procurement and development.
One Ford-class aircraft carrier cost 13 billion, the Air Force added 5 billion,ined 1 billion a year, 11 combined operating costs broke 10 billion, plus escort ships and aircraft, the bill is even more frightening.
U.S. dollar hegemony began with the post-World War II Bretton Woods system.In 1971, Nixon announced a halt to the dollar’s exchange for gold, which broke Bretton Woods and the dollar’s floating exchange rate, helping the United States avoid the loss of reserves.
Nixon's decision had far-reaching impact, pushing the U.S. dollar to decouple from gold to oil. 80% of global oil trade was settled in U.S. dollars. Oil-producing countries such as Saudi Arabia bought U.S. debt after making money, forming a closed loop and stabilizing the U.S. debt game.
This game allows the United States to control energy and snowball debt. The debt mechanism depends on this foundation. The aircraft carrier expenditure is integrated into the budget, and the military expenditure comes from the debt. Military forces in turn protect the US dollar, and the aircraft carrier cruises to deter and keep the trade line smooth.
The debt is growing fast, but the dollar is attractive, and new bonds can always be sold out. Global trade is used by the dollar, enterprises accumulate risks, central bank reserves intervene in the market. State bond auctions are automated, investors bid globally, funds cover military spending gaps, interest rates are high, but they do not collapse.
But now the path begins to shake, the dollar’s share of global foreign exchange reserves drops from 72% to 57.7%, the countries store more gold, euro and yuan, the proportion of non-dollar oil settlements increases.
The interest burden on U.S. debt is heavy, with 1 trillion yuan this year. The fiscal deficit has widened, industrial production capacity has declined, and military technology has developed slowly. Some media say that aircraft carriers are low cost-effective and suggest cutting the number for missiles. However, in the short term, the United States cannot do without aircraft carrier deterrence. At the beginning of Nixon's decision, the system has evolved to this day, with many challenges.
The United States owes a mountain of debts, as large as 37 trillion yuan, but its warships are still wandering around, especially those aircraft carriers. Owing so much money, how can you still hold up a big naval battle? Is the whole world wiping its ass?
By the end of August this year, the total amount of U.S. debt has reached $37.2 trillion, this scale accounts for almost a quarter of the global GDP, no one feels to breathe.
The key lies in the dominance of the dollar, which accounts for half of the world's international trade, and which countries have to hoard as reserves, even if the trade has nothing to do with the United States. This has made US Treasury bonds a hot commodity, with foreign investors holding more than 9 trillion share, because it is regarded as the safest financial tool.
Every time an old debt matures, the Ministry of Finance issues a new debt to take over, not only paying off the old debt, but also paying out more money to spend. Debt due this year accounts for about a quarter of the total, but with US dollar credit, there are always new buyers coming to our door.
Interest spending is expected to be $1 trillion this year, exceeding military spending to be the government's number one spending, but this has not stopped military spending, and the defense budget has risen to $900 billion, 40% of which is spent on arms procurement and development.
One Ford-class aircraft carrier cost 13 billion, the Air Force added 5 billion,ined 1 billion a year, 11 combined operating costs broke 10 billion, plus escort ships and aircraft, the bill is even more frightening.
U.S. dollar hegemony began with the post-World War II Bretton Woods system.In 1971, Nixon announced a halt to the dollar’s exchange for gold, which broke Bretton Woods and the dollar’s floating exchange rate, helping the United States avoid the loss of reserves.
Nixon's decision had far-reaching impact, pushing the U.S. dollar to decouple from gold to oil. 80% of global oil trade was settled in U.S. dollars. Oil-producing countries such as Saudi Arabia bought U.S. debt after making money, forming a closed loop and stabilizing the U.S. debt game.
This game allows the United States to control energy and snowball debt. The debt mechanism depends on this foundation. The aircraft carrier expenditure is integrated into the budget, and the military expenditure comes from the debt. Military forces in turn protect the US dollar, and the aircraft carrier cruises to deter and keep the trade line smooth.
The debt is growing fast, but the dollar is attractive, and new bonds can always be sold out. Global trade is used by the dollar, enterprises accumulate risks, central bank reserves intervene in the market. State bond auctions are automated, investors bid globally, funds cover military spending gaps, interest rates are high, but they do not collapse.
But now the path begins to shake, the dollar’s share of global foreign exchange reserves drops from 72% to 57.7%, the countries store more gold, euro and yuan, the proportion of non-dollar oil settlements increases.
The interest burden on U.S. debt is heavy, with 1 trillion yuan this year. The fiscal deficit has widened, industrial production capacity has declined, and military technology has developed slowly. Some media say that aircraft carriers are low cost-effective and suggest cutting the number for missiles. However, in the short term, the United States cannot do without aircraft carrier deterrence. At the beginning of Nixon's decision, the system has evolved to this day, with many challenges.