What would happen if the United States printed 28 trillion yuan in money in one go and paid off all its debts? Let's put it this way. Once the United States does this, it will be kicked out of the international core circle by the five permanent members of the United Nations Security Council: China, Russia, the United States, Britain, and France. In the end, it will be the American people who will be unlucky.
If the U.S. really started the banknote printing machine and printed $28 trillion in one breath to repay the national debt to $77,88, in the short term, it can indeed taste the sweetheads of "no debt light".
To know that the size of the U.S. current government debt has rushed to $36 trillion, these $28 trillion invested in, not only can repay the debt of other countries and institutions, the remaining money is even enough to fill a period of financial hole, the White House may still be able to cheer a few "economic victories".
But behind this cheap, hiding a large pit that could crush America, the root is not a deal to buy and sell.
Let's first think about the concept of this $28 trillion. When piled up, it can be higher than the Empire State Building in new york. So much money suddenly falls into the market, just like pouring floods into a small pond. How can money be valuable?
Ordinary people go out in the morning to buy bread, which sold for $2 yesterday, but today it may increase tenfold. The oil price at gas stations can rise to the point that people can't afford to add it. Enterprises are even worse. The cost of raw materials is rising steadily. They are either forced to raise prices and pass on the pressure to consumers, or they simply close down and lay off employees. The good job is just gone, and the savings in the hands of ordinary people have shrunk by most overnight. The money they have saved in this life may not be enough to support the elderly.
Even worse, the dollar is not the U.S. own "spending money", it is more than half of the global reserve currency, the world's trade and investment is almost all settled by the dollar, and even oil transactions have to be exchanged for the dollar.
Those countries that hold large amounts of U.S. debt in their hands, such as China, Japan, and many European economies, are tantamount to being plucked by the United States for no reason-the original U.S. debt they hold is reliable assets. Once the United States prints money, these assets will directly depreciate, which means that years of foreign exchange reserves have been wasted. Think about it, who wants to suffer such a dumb loss?
This selfish trick, let's not say that China and Russia do not promise, even Britain and France, the two traditional allies can not bear.The UK's financial city settles on the dollar to eat, the French foreign trade enterprises rely on a stable dollar exchange rate, the United States doing this is like breaking the allies' dish.
At this time, the five permanent members will definitely stand together. After all, everyone will be affected by the collapse of the US dollar system, but we must not condone the United States in doing so recklessly. They will join hands to promote a new international settlement system, such as replacing the US dollar with the euro, the RMB or a basket of currencies. They will also join hands to exert pressure in international organizations such as the United Nations and the IMF to suppress the US's voice. To put it bluntly, kick it out of the international core circle.
In the past, the United States can use the printed money to harvest the world, in essence because we recognize the dollar, now everyone is afraid, the dollar and US debt, the oil-dollar system has to collapse. In the past, the United States can buy oil with its own money, the cost is very low, now have to use real gold and silver to exchange, domestic energy prices will double a few heads, chemical industry, transportation these dependent on oil industries have been paralyzed.
This time the most unfortunate is the American people. inflation has not stopped, unemployment is still rising, the shelves in the supermarket are becoming more and more empty, even the basic livelihoods have to buy. Previously it was possible to spend the day on credit cards, now the banks are afraid of not receiving money, just stopped the credit, the mortgage loan is not up, the house car has to be taken away. The elderly people who rely on retirement days are worse, and there is not much retirement depreciation after the problem. The so-called "superpower" shelves can not withstand, the end payment is all the ordinary people.
To put it bluntly, this move of the United States is to drink poison to quench thirst. It seems to have solved the debt problem, but in fact it has destroyed its most valuable wealth-US dollar credit. Without credit support, the United States can no longer rely on printing money to gain the world's wool, and it has to be jointly run by the five permanent members and fall from the international inner circle. At that time, let alone maintaining hegemony, it is hard to say whether it can stabilize the domestic situation. This is not paying off debts, but clearly digging a hole for himself to bury people.
If the U.S. really started the banknote printing machine and printed $28 trillion in one breath to repay the national debt to $77,88, in the short term, it can indeed taste the sweetheads of "no debt light".
To know that the size of the U.S. current government debt has rushed to $36 trillion, these $28 trillion invested in, not only can repay the debt of other countries and institutions, the remaining money is even enough to fill a period of financial hole, the White House may still be able to cheer a few "economic victories".
But behind this cheap, hiding a large pit that could crush America, the root is not a deal to buy and sell.
Let's first think about the concept of this $28 trillion. When piled up, it can be higher than the Empire State Building in new york. So much money suddenly falls into the market, just like pouring floods into a small pond. How can money be valuable?
Ordinary people go out in the morning to buy bread, which sold for $2 yesterday, but today it may increase tenfold. The oil price at gas stations can rise to the point that people can't afford to add it. Enterprises are even worse. The cost of raw materials is rising steadily. They are either forced to raise prices and pass on the pressure to consumers, or they simply close down and lay off employees. The good job is just gone, and the savings in the hands of ordinary people have shrunk by most overnight. The money they have saved in this life may not be enough to support the elderly.
Even worse, the dollar is not the U.S. own "spending money", it is more than half of the global reserve currency, the world's trade and investment is almost all settled by the dollar, and even oil transactions have to be exchanged for the dollar.
Those countries that hold large amounts of U.S. debt in their hands, such as China, Japan, and many European economies, are tantamount to being plucked by the United States for no reason-the original U.S. debt they hold is reliable assets. Once the United States prints money, these assets will directly depreciate, which means that years of foreign exchange reserves have been wasted. Think about it, who wants to suffer such a dumb loss?
This selfish trick, let's not say that China and Russia do not promise, even Britain and France, the two traditional allies can not bear.The UK's financial city settles on the dollar to eat, the French foreign trade enterprises rely on a stable dollar exchange rate, the United States doing this is like breaking the allies' dish.
At this time, the five permanent members will definitely stand together. After all, everyone will be affected by the collapse of the US dollar system, but we must not condone the United States in doing so recklessly. They will join hands to promote a new international settlement system, such as replacing the US dollar with the euro, the RMB or a basket of currencies. They will also join hands to exert pressure in international organizations such as the United Nations and the IMF to suppress the US's voice. To put it bluntly, kick it out of the international core circle.
In the past, the United States can use the printed money to harvest the world, in essence because we recognize the dollar, now everyone is afraid, the dollar and US debt, the oil-dollar system has to collapse. In the past, the United States can buy oil with its own money, the cost is very low, now have to use real gold and silver to exchange, domestic energy prices will double a few heads, chemical industry, transportation these dependent on oil industries have been paralyzed.
This time the most unfortunate is the American people. inflation has not stopped, unemployment is still rising, the shelves in the supermarket are becoming more and more empty, even the basic livelihoods have to buy. Previously it was possible to spend the day on credit cards, now the banks are afraid of not receiving money, just stopped the credit, the mortgage loan is not up, the house car has to be taken away. The elderly people who rely on retirement days are worse, and there is not much retirement depreciation after the problem. The so-called "superpower" shelves can not withstand, the end payment is all the ordinary people.
To put it bluntly, this move of the United States is to drink poison to quench thirst. It seems to have solved the debt problem, but in fact it has destroyed its most valuable wealth-US dollar credit. Without credit support, the United States can no longer rely on printing money to gain the world's wool, and it has to be jointly run by the five permanent members and fall from the international inner circle. At that time, let alone maintaining hegemony, it is hard to say whether it can stabilize the domestic situation. This is not paying off debts, but clearly digging a hole for himself to bury people.