[Rabbit] What will happen if the United States prints 37 trillion yuan in one go and pays off all its debts? Once the United States does this, it will be jointly kicked out of the international circle by China, Russia, Britain and France, the four permanent members of the UN Security Council, the next day. In the end, it will be the American people who are unlucky.
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The US dollar can become the world's hard currency, not by the appearance of the United States, nor by warships and aircraft carriers, but by the sense of trust developed around the world for decades. Countries believe that your U.S. dollar is valuable and the U.S. government will not default on its debts, so they buy U.S. debt as a "safe deposit box". But now? Printing 37 trillion yuan in one breath, to put it bluntly, is to tell the creditor: I owe the money, but I will pay you back with the printed money, so you can take it.
It’s like you borrowed ten thousand dollars from your neighbor and finally paid him back the “fake money” you put out with your own printer.
The IMF data has explained the problem: in the first quarter of 1925, the dollar’s share of global foreign exchange reserves dropped to 57.7%, a record low. If the United States really did, countries would accelerate the reduction of U.S. debt, sell U.S. dollar assets, and directly accelerate the process of dollarization.
Later, global trade could directly bypass the dollar and even kick the dollar out of the SWIFT settlement system. By that time, the dollar turned from the “world currency” to the “local currency of the United States”, and the international status was completely collapsed.
What is the concept of printing $37 trillion? is equivalent to injecting super-enriched “money medicine” into the global economy, and all countries have to rewrite their price tables.
The US dollar is the "ruler" of the world. If you stretch the ruler, the global price system will be in chaos. The first is global inflation: oil, food, chips, shipping... all rising prices. You are not buying dollars, you are buying the anxiety of all people around the globe.
And congresses are more determined to throw away dollar assets and avoid being cut off by U.S. inflation. That's why "dollarization" has become a hot word in the past few years. Print debt repayment will only speed up this trend, and more new systems of settlement in yuan, euro, yen may be born in the future. In other words, this wave of U.S. operations may directly kick themselves out of the global economic circle.
Don't think that only the world is unlucky, and the American people can't run away.In the past 10 years, the Federal Reserve printed less than 9 trillion, this time directly printed 37 trillion, is equivalent to overthrowing the currency "effort" of the last few decades once and for all.
You buy milk for $3 today, you may buy milk for $4 tomorrow, and you may buy milk for $6 next week.
At that time, the Germans pushed the monoliths to buy bread. The Chinese were also strangers, and the state devalued the federal currency during the period, and the wages were issued to buy rice, otherwise the price of work would double.
Even more terrifying is the financial market.The dollar devaluation, the yield rate of US bonds will explode, the cost of the US government borrowing is increasing, and the result can only continue to borrow, continue to print, form a vicious cycle.
The stock market can't bear it either. In the 2008 financial crisis, the S&P 500 fell by 38.5%. This time, it's not surprising that the credit of the US dollar collapsed and fell by more than half. People's pensions and 401k accounts directly evaporated, and their retirement dreams returned to before liberation overnight.
The United States has always used the dollar as the global harvesting machine: you work hard and I print money to buy what you have, but if the dollar is thrown away worldwide, the United States will lose its most important harvesting tool.
More realistically, the international credit of the United States will be labeled as "Lao Lai". Who dares to do business with you? Who dares to keep money with you? Once this financial hegemony is lost, the United States will not only experience a economic decline, but also its voice in international affairs will be weakened. Originally, the United States could sanction anyone with its mouth, but in the future, it may have to look at the faces of others before entering the market.
Printing money to pay off debts seems to be a "coup", but it actually burns the credit system that the United States has been painstakingly managed for decades. The global financial system is already tottering, and this is even worse.
Please click "Follow" in the upper right corner of the officials. It will not only facilitate your discussion and sharing, but also give you a different sense of participation. Thank you for your support!
The US dollar can become the world's hard currency, not by the appearance of the United States, nor by warships and aircraft carriers, but by the sense of trust developed around the world for decades. Countries believe that your U.S. dollar is valuable and the U.S. government will not default on its debts, so they buy U.S. debt as a "safe deposit box". But now? Printing 37 trillion yuan in one breath, to put it bluntly, is to tell the creditor: I owe the money, but I will pay you back with the printed money, so you can take it.
It’s like you borrowed ten thousand dollars from your neighbor and finally paid him back the “fake money” you put out with your own printer.
The IMF data has explained the problem: in the first quarter of 1925, the dollar’s share of global foreign exchange reserves dropped to 57.7%, a record low. If the United States really did, countries would accelerate the reduction of U.S. debt, sell U.S. dollar assets, and directly accelerate the process of dollarization.
Later, global trade could directly bypass the dollar and even kick the dollar out of the SWIFT settlement system. By that time, the dollar turned from the “world currency” to the “local currency of the United States”, and the international status was completely collapsed.
What is the concept of printing $37 trillion? is equivalent to injecting super-enriched “money medicine” into the global economy, and all countries have to rewrite their price tables.
The US dollar is the "ruler" of the world. If you stretch the ruler, the global price system will be in chaos. The first is global inflation: oil, food, chips, shipping... all rising prices. You are not buying dollars, you are buying the anxiety of all people around the globe.
And congresses are more determined to throw away dollar assets and avoid being cut off by U.S. inflation. That's why "dollarization" has become a hot word in the past few years. Print debt repayment will only speed up this trend, and more new systems of settlement in yuan, euro, yen may be born in the future. In other words, this wave of U.S. operations may directly kick themselves out of the global economic circle.
Don't think that only the world is unlucky, and the American people can't run away.In the past 10 years, the Federal Reserve printed less than 9 trillion, this time directly printed 37 trillion, is equivalent to overthrowing the currency "effort" of the last few decades once and for all.
You buy milk for $3 today, you may buy milk for $4 tomorrow, and you may buy milk for $6 next week.
At that time, the Germans pushed the monoliths to buy bread. The Chinese were also strangers, and the state devalued the federal currency during the period, and the wages were issued to buy rice, otherwise the price of work would double.
Even more terrifying is the financial market.The dollar devaluation, the yield rate of US bonds will explode, the cost of the US government borrowing is increasing, and the result can only continue to borrow, continue to print, form a vicious cycle.
The stock market can't bear it either. In the 2008 financial crisis, the S&P 500 fell by 38.5%. This time, it's not surprising that the credit of the US dollar collapsed and fell by more than half. People's pensions and 401k accounts directly evaporated, and their retirement dreams returned to before liberation overnight.
The United States has always used the dollar as the global harvesting machine: you work hard and I print money to buy what you have, but if the dollar is thrown away worldwide, the United States will lose its most important harvesting tool.
More realistically, the international credit of the United States will be labeled as "Lao Lai". Who dares to do business with you? Who dares to keep money with you? Once this financial hegemony is lost, the United States will not only experience a economic decline, but also its voice in international affairs will be weakened. Originally, the United States could sanction anyone with its mouth, but in the future, it may have to look at the faces of others before entering the market.
Printing money to pay off debts seems to be a "coup", but it actually burns the credit system that the United States has been painstakingly managed for decades. The global financial system is already tottering, and this is even worse.