Behind the skyrocketing US Treasury bonds lies the disconnect between the app...

franciss

As the US federal government debt exceeds $35 trillion, the proportion of debt held by the public to US GDP is expected to reach 99% this year. The unrestrained expansion of US Treasury bonds means that interest payments are getting higher and higher, which will squeeze the US government's investment in the public sector, including infrastructure construction, education, and so on. If Washington continues its current path, the debt ceiling may be repeatedly breached, triggering consequences such as credit rating downgrades and financial market turbulence. These impacts will have an impact on the credit of the US government and the US dollar, thereby weakening the dominant position of the US dollar in the global monetary system in the medium to long term.
- T! X0 `+ q+ c1 a0 u/ w& }* pThe root cause of the continuous growth of US debt lies in the fiscal deficit, which involves the US's radical fiscal policy, the aging population, high medical costs, huge military expenditure and other long-term deep-seated problems. We can only continue to use the currency privilege of the US dollar itself, continue its path of deficit monetization, and let the snowball of debt continue to roll.

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