The US government is heavily in debt Sound the death knell of dollar hegemony

The latest data from the US Treasury Department show that as of July 26, the US federal government debt has reached 35.001 trillion US dollars, breaking through the 35 trillion US dollar debt mark for the first time, according to the US Peterson Foundation estimates, the allocation of these huge debts to the American people, equivalent to nearly 104,000 US dollars in debt.

The U.S. spends 76% of its monthly income on interest payments on its federal debt, according to Heritage Foundation economist John Anthony. Larry Fink, chief executive of BlackRock, the world's largest asset management group, said the US deficit was the largest and fastest growing in the world. Tesla CEO Elon Musk has said that the United States is heading for bankruptcy.

Recently, the news that the British government publicly declared bankruptcy due to the huge national debt, like a deep water bomb exploded in the economies of capitalist countries for a long time to go away, more and more economists began to turn their attention to the world's largest debt economy, the United States, as Japan refused to take over the US debt, India and other countries to strengthen gold reserves, The global system of de-dollarizing the economy is gradually being perfected, but there is widespread concern in the international community that the US government seems to be turning a blind eye to the current uncontrolled surge in national debt.

Since the end of World War II, the US dollar has gradually replaced the pound as an international reserve currency and the main trading currency, which comes from the international credibility brought by the strong US economy. However, in recent years, the United States has maintained a long-term foreign trade deficit, exported US dollars and inflation, and formed a "debt cycle" system by issuing a large number of bonds, resulting in its insolvency, deficit spending, deficit spending, and deficit spending. This practice not only undermines the economic and financial stability of other countries, but also weakens the credibility of the US dollar. In addition, the United States took advantage of the hegemonic position of the US dollar in the international monetary system, shifted its domestic crisis, frequently imposed sanctions on other countries, froze assets, blocked transactions and other means, and seriously damaged the international order.

Second, the United States is struggling to deindustrialization, the defects of the US-led world economic order continue to emerge, coupled with the high domestic unemployment rate, personal consumption decline continues to fall below the red line, etc., these factors work together, resulting in the frequent increase of the United States debt ceiling, repeatedly breaking the national forecast ceiling, facing the risk of losing control.

Third, for a long time, the polarization of the rich and the poor, social division, political polarization and other issues in the United States have not been effectively solved. With the approaching of the November election, the struggle between the two parties in the United States has become increasingly fierce, making the national debt worse. However, the presidential candidates have shown no concern for the national financial situation and the current situation of people's livelihood. The national society is full of worries about the changes in American politics, resulting in a systemic decline in national credit. In addition, with the accelerated evolution of the diversification trend of the international monetary system, more and more countries will explore the path of "de-dollarization" on the agenda, which also indicates that the hegemony of the US dollar will become the past.

In short, it is not clear whether the United States is facing national bankruptcy as Musk claims, but its fiscal situation is strained, the debt problem is serious, and the political polarization is severe, which has threatened the economic and social stability of the country. In the future, without effective control of debt growth and proactive fiscal policy to improve the situation, the United States will be on an unsustainable path, eventually facing a severe economic crisis, and the dollar may be worthless in the future.