It never occurred to anyone of this generation that the United States had sunk into debt and the ability to repay it became doubtful,after the US Treasury bonds were the strongest investment among countries, their rapid disposal became a title, and not only that, the interest is high and the US debt service is more than a trillion dollars, and this exceeds the US defense budget,domestic borrowing accounts for 70% of this debt, and the largest creditor of the United States from foreign countries is Japan in the form of bonds of about 1.1 trillion dollars, then China 730 billion dollars, and then the United Kingdom about 700 billion dollars.
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What does it all mean?
This means that there is a risk of default on the US debt, which will lead to distrust of the dollar and US bonds, investment in the bond market and real estate, and therefore a shake-up in the stock market and real estate will lead to a collapse in the US economy.
How the US debt was formed? The first is the mismanagement of the country during the crisis, where the US government pumped more than 3 trillion dollars into the hands of citizens, as well as the absurd wars that supported it, which plunged the United States into debt, inflation increased and it became impossible to control it and high interest.
Why will interest rates remain high and inflation will not reach 2% ?
There are several reasons, including:borrowing to increase the defense budgets of countries, as some of them, especially the European ones, have become 5% of their GDP, borrowing to invest in artificial intelligence technology and fears that these investments will not give a return in the short term, as the value of the US stock market has increased over the past few period from 40 trillion dollars to 70 trillion dollars due to the double market increase in the value of American technology companies, borrowing for transformations in clean energy and infrastructure to overcome climate change, as climate change has become a great threat to the economy of countries, and it is expected that It will consume 5% of its GDP before 2030, and finally the concept of globalization has changed, which will cost the world money to borrow for new logistics projects.
How does the US think to get out of the debt crisis ?
The answer to this is that it does not have a magic wand, but resorting to methods that may lead to this, the most important of which is printing more dollars, which will lead to more inflation and a decrease in the dollar, so that debts will decrease and erode with it, and this is a big risk, especially if the BRICS camp gets rid of the dollar in commercial transactions ,another solution that US President Trump is working on is to reduce interest to reduce debt service and bring investments with lower interest, but the most powerful solution is to go to digital currencies and look for stable currencies and impose reserves on banks to deal with them and this will provide liquidity that will enable him to repay part of the indebtedness.
The last question is: With U.S. debt piling up, can the U.S. stop China from occupying Taiwan ? We know that the conflict between the United States and China on this island is a struggle to prevent advanced technology, namely electronic chips manufactured by Taiwan, from reaching China, where the Taiwan chip factory TSMC is able to make a chip with a size of 2 nanometers, while China is still making a chip with a size of 7 nanometers,but China set off in preparation for the invasion of Taiwan for military superiority over the United States after the latter directly intervened in the war between Iran and Israel and supported its ally Israel by using its stealth aircraft to bomb Iranian nuclear sites, preparations The Chinese are mostly advanced technology, including:
1.Recent satellite launches have the potential to destroy Western satellites in space with arms that take them out of orbit to swim far into space.
2.Applications of the sixth generation 6G, which will be crucial in the war, which China is nearing completion.
3.It has produced very large quantities of missiles that are superior in quantity to the United States if it enters a war of attrition, especially since the United States has exhausted part of its missile stockpile in the Middle East war and the Ukrainian war by supporting its allies.
4.Mass production of robotic dogs and robotic vehicles, all connected to artificial intelligence operating rooms that use algorithms that execute commands up to 10,000 commands per second, and this progress is now owned only by China, through Quantum servers enhanced by the sixth generation of communications to be able to reach targets and execute commands in a proactive manner, the other party can not take any action.
5.China simulates a war using sound and light effects in virtual reality that affects all conventional weapons.
In conclusion, the United States today is not the same as it was decades ago, it is mired in debt with an economy on the verge of collapse, it will get out of its crisis only by building bridges of trust with China and cooperating with it integrally and not individually, and effectively ending all global crises, which the United States can do before it's too late .
