1 thought on “The consequences of US debt defaults may cause”
Andres
The consequences of US debt defaults The consequences of US debt defaults have caused the consequences of the U.S. Congress since 1960, the U.S. Congress has increased or suspended 78 debt upper limit. In order to continue to pay interest, the Ministry of Finance may have to reduce about 40%of expenditures. The consequences of US debt defaults. The consequences of the US debt defaults 1. U.S. Treasury Secretary Yellen again warned in an interview with the media that if the US Congress cannot increase the debt limit before the 18th of this month, it will lead to the first time in the United States in history in history. Bob in breach. She said that U.S. Treasury bonds have long been regarded as one of the safest assets for a long time, and partially supported the US dollar reserve currency status. Therefore, "not fulfilling the government's debt repayment obligations will be disastrous." The field decline. Yeron has been calling on Congress to raise or suspend the upper limit of federal debt in recent months, and warn the consequences of breach of contract many times. The short -term panic and catastrophic scenes Since 1960, the US Congress has increased or suspended 78 debt upper limit. The New York Times pointed out that the issue of debt defaults has actually existed for many years, but in the past, both parties would increase the limit by default, so it would not be a crisis. However, in recent years, as the polarization of the U.S. political environment has become more and more serious, "increasing debt limit" has become a tool for party games, and the crisis has become increasingly apparent. If according to the Brookings Society of Think Tank, if Congress missed the last chance to raise the debt limit, the federal government will postpone the beneficiaries of various institutions, social security beneficiaries, medical insurance suppliers and contractors. Payment, but at the same time, it will continue to pay bond interest to avoid breach of contract. However, although this approach protects bond investors, the reputation of the US government has plummeted.
According to the two -party policy center, in order to continue to pay interest, the Ministry of Finance may have to reduce about 40%of expenditures. In a 2013 analysis of the research company, ADVISERS estimated that if the Ministry of Finance cuts expenditures, it may cause the United States to lose about 3.1 million jobs. A study by the Fed that year pointed out that if the debt limit remains unchanged within a few weeks, it is estimated that the stock market will be hit by 30%, and the US dollar will fall by 10%. As the US debt approaches the upper limit, Wall Street investors mainly pay attention to the dynamics of the two market scenarios. The "short -term panic" caused by the debt limit crisis. As early as 2011, US debt had a top touches, setting a record high of $ 14.29 trillion. This is the first time that the debt limit issue was furious. At that time, many people predicted that the United States' loan capacity would be permanently affected. In 2013, the US debt limit crisis occurred, and the short -term government borrowing interest rates soared. However, after Congress increased its debt limit, interest rates fell quickly to the previous. Over time, the stimulation of employment and housing prices has offset the cost of high loan in short -term panic. The second is a "catastrophic" scene. At this stage, the long -term debt limit crisis in the United States may lead to unprecedented financial turmoil. U.S. Treasury bonds can be used as a mortgage for short -term loans, but if the US government has debt defaults, the lender may not accept this kind of adverse securities as a mortgage. To make matters worse, no one had previously thought that the Treasury bonds would also have thunderstorms. Even Wall Street's trading systems did not have the settings of non -tactile debt, which also caused a category of non -default government bonds and other U.S. Treasury bonds. In this way, the short -term loan market in the United States will be paused, and the catastrophic script of the financial crisis may be staged again in the United States. If market analysts said that if the U.S. government owes huge debt, it may occur a larger financial crisis than 2008. It is estimated that this will cause US wealth to evaporate $ 15 trillion and 6 million people will be unemployed. It can be said that the US capital market is now facing potential financial timing bombs. The consequences of the US Treasury default 2nd US Treasury Minister Jennite Yellen warned to Congress as early as September that the "unconventional measures" adopted by the United States last long. If the United States cannot raise the debt limit or suspend its effectiveness in time, it is likely to trigger a historic debt default in October this year. At that time, the cost of short -term loan in the United States will rise, and the United States and the world will be affected. Yellen emphasized that even at the last moment, deciding to increase the debt limit will make the economic field unprecedentedly turbulent. On September 29, the US House of Representatives proposed a suspension of debt limit. A total of 219 people in favor of this proposal, and 212 people voted against it. The proposal was finally passed with a weak advantage.
If this proposal can be recognized by the Senate, the United States will once again achieve its own goals and use the US dollar hegemony to pass the debt crisis into the world, forcing countries around the world to bear risks. Over the years, the United States has tried it repeatedly, but now it is no longer so smooth. First, this proposal needs to be voted by the Senate, but the US media believes that the US Senate will not pass the proposal. Even if the United States has successfully passed this proposal, the world pattern is destined to fail. At present, the total US debt is as high as US $ 2.84 trillion, and the relevant U.S. departments will inevitably be unable to repay this amount. Of course, it is hoped that it can be passed on to the crisis as soon as possible. Once this proposal is officially passed, the United States can continue to issue government bonds to raise funds before the end of 2022 to solve the current predicament of the United States.
The United States hopes that we will become the "pick -up man" of US debt. The United States will not only issue government bonds, trying to pass the crisis to countries purchased to US Treasury bonds, but also intend to use the US dollar to buy the goods we produce. I have to say that the Ruyi abacus in the United States is perfect. First, a large number of goods in the United States can alleviate the current supply chain crisis and can also make the high inflation rate "cool down". Second, the currency settlement of transactions will use the US dollar, which will pass on the debt crisis to us. In fact, the United States has passed the risk in the same way many times. Even after the 2008 financial crisis, the inflation rate in the United States remained at a normal level of about 2%.
It this time, we have fully realized the large number of risks of the US economy and started selling US debt early. Coincidentally, Russia has already acted, selling a large number of US debts and purchasing many gold, which continues to increase the amount of gold reserves. Russia believes that gold is the best choice for long -term investment. The Eurasian Economic Alliance led by Russia has increased in internal trade, and the proportion of US dollars has continued to decline year by year. Russia has reached an agreement with us, and the local currency settlement is also used in the fuel field. Iran, who is deeply sanctioned by the United States, is stepping up the development of digital currencies to get rid of the United States' suppression and control.
A even the traditional American allies, the EU, has already begun to explore the "de -US dollar". The EU hopes to use the euro as a priority international reserve currency to make the euro directly compete with the US dollar. With the continuous development of the times, the financial hegemony of the United States has seriously hindered the development of the world. Not only that, the United States itself has been deeply harmed. The era when the United States has used the US dollar hegemony to pass the crisis has been gone, and the world's polarization is ushered in new development opportunities.
The consequences of US debt defaults
The consequences of US debt defaults have caused the consequences of the U.S. Congress since 1960, the U.S. Congress has increased or suspended 78 debt upper limit. In order to continue to pay interest, the Ministry of Finance may have to reduce about 40%of expenditures. The consequences of US debt defaults.
The consequences of the US debt defaults 1. U.S. Treasury Secretary Yellen again warned in an interview with the media that if the US Congress cannot increase the debt limit before the 18th of this month, it will lead to the first time in the United States in history in history. Bob in breach. She said that U.S. Treasury bonds have long been regarded as one of the safest assets for a long time, and partially supported the US dollar reserve currency status. Therefore, "not fulfilling the government's debt repayment obligations will be disastrous." The field decline.
Yeron has been calling on Congress to raise or suspend the upper limit of federal debt in recent months, and warn the consequences of breach of contract many times.
The short -term panic and catastrophic scenes
Since 1960, the US Congress has increased or suspended 78 debt upper limit. The New York Times pointed out that the issue of debt defaults has actually existed for many years, but in the past, both parties would increase the limit by default, so it would not be a crisis. However, in recent years, as the polarization of the U.S. political environment has become more and more serious, "increasing debt limit" has become a tool for party games, and the crisis has become increasingly apparent.
If according to the Brookings Society of Think Tank, if Congress missed the last chance to raise the debt limit, the federal government will postpone the beneficiaries of various institutions, social security beneficiaries, medical insurance suppliers and contractors. Payment, but at the same time, it will continue to pay bond interest to avoid breach of contract. However, although this approach protects bond investors, the reputation of the US government has plummeted.
According to the two -party policy center, in order to continue to pay interest, the Ministry of Finance may have to reduce about 40%of expenditures. In a 2013 analysis of the research company, ADVISERS estimated that if the Ministry of Finance cuts expenditures, it may cause the United States to lose about 3.1 million jobs. A study by the Fed that year pointed out that if the debt limit remains unchanged within a few weeks, it is estimated that the stock market will be hit by 30%, and the US dollar will fall by 10%.
As the US debt approaches the upper limit, Wall Street investors mainly pay attention to the dynamics of the two market scenarios.
The "short -term panic" caused by the debt limit crisis. As early as 2011, US debt had a top touches, setting a record high of $ 14.29 trillion. This is the first time that the debt limit issue was furious. At that time, many people predicted that the United States' loan capacity would be permanently affected. In 2013, the US debt limit crisis occurred, and the short -term government borrowing interest rates soared. However, after Congress increased its debt limit, interest rates fell quickly to the previous. Over time, the stimulation of employment and housing prices has offset the cost of high loan in short -term panic.
The second is a "catastrophic" scene. At this stage, the long -term debt limit crisis in the United States may lead to unprecedented financial turmoil. U.S. Treasury bonds can be used as a mortgage for short -term loans, but if the US government has debt defaults, the lender may not accept this kind of adverse securities as a mortgage. To make matters worse, no one had previously thought that the Treasury bonds would also have thunderstorms. Even Wall Street's trading systems did not have the settings of non -tactile debt, which also caused a category of non -default government bonds and other U.S. Treasury bonds. In this way, the short -term loan market in the United States will be paused, and the catastrophic script of the financial crisis may be staged again in the United States.
If market analysts said that if the U.S. government owes huge debt, it may occur a larger financial crisis than 2008. It is estimated that this will cause US wealth to evaporate $ 15 trillion and 6 million people will be unemployed. It can be said that the US capital market is now facing potential financial timing bombs.
The consequences of the US Treasury default 2nd US Treasury Minister Jennite Yellen warned to Congress as early as September that the "unconventional measures" adopted by the United States last long. If the United States cannot raise the debt limit or suspend its effectiveness in time, it is likely to trigger a historic debt default in October this year. At that time, the cost of short -term loan in the United States will rise, and the United States and the world will be affected. Yellen emphasized that even at the last moment, deciding to increase the debt limit will make the economic field unprecedentedly turbulent. On September 29, the US House of Representatives proposed a suspension of debt limit. A total of 219 people in favor of this proposal, and 212 people voted against it. The proposal was finally passed with a weak advantage.
If this proposal can be recognized by the Senate, the United States will once again achieve its own goals and use the US dollar hegemony to pass the debt crisis into the world, forcing countries around the world to bear risks. Over the years, the United States has tried it repeatedly, but now it is no longer so smooth. First, this proposal needs to be voted by the Senate, but the US media believes that the US Senate will not pass the proposal. Even if the United States has successfully passed this proposal, the world pattern is destined to fail. At present, the total US debt is as high as US $ 2.84 trillion, and the relevant U.S. departments will inevitably be unable to repay this amount. Of course, it is hoped that it can be passed on to the crisis as soon as possible. Once this proposal is officially passed, the United States can continue to issue government bonds to raise funds before the end of 2022 to solve the current predicament of the United States.
The United States hopes that we will become the "pick -up man" of US debt. The United States will not only issue government bonds, trying to pass the crisis to countries purchased to US Treasury bonds, but also intend to use the US dollar to buy the goods we produce. I have to say that the Ruyi abacus in the United States is perfect. First, a large number of goods in the United States can alleviate the current supply chain crisis and can also make the high inflation rate "cool down". Second, the currency settlement of transactions will use the US dollar, which will pass on the debt crisis to us. In fact, the United States has passed the risk in the same way many times. Even after the 2008 financial crisis, the inflation rate in the United States remained at a normal level of about 2%.
It this time, we have fully realized the large number of risks of the US economy and started selling US debt early. Coincidentally, Russia has already acted, selling a large number of US debts and purchasing many gold, which continues to increase the amount of gold reserves. Russia believes that gold is the best choice for long -term investment. The Eurasian Economic Alliance led by Russia has increased in internal trade, and the proportion of US dollars has continued to decline year by year. Russia has reached an agreement with us, and the local currency settlement is also used in the fuel field. Iran, who is deeply sanctioned by the United States, is stepping up the development of digital currencies to get rid of the United States' suppression and control.
A even the traditional American allies, the EU, has already begun to explore the "de -US dollar". The EU hopes to use the euro as a priority international reserve currency to make the euro directly compete with the US dollar. With the continuous development of the times, the financial hegemony of the United States has seriously hindered the development of the world. Not only that, the United States itself has been deeply harmed. The era when the United States has used the US dollar hegemony to pass the crisis has been gone, and the world's polarization is ushered in new development opportunities.