币东风
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Dollar Explosion! The US-China 'Debt Default Showdown' Escalates, the World is Forced to Watch Who Falls First!
The truth about why the US is not fighting a trade war? In one sentence: too much debt, trying to default!
Now, the US national debt has reached $36 trillion, equivalent to every American being born with a debt of $120,000. Faced with this astronomical debt, the US resorts to an old trick—devaluing the dollar!
Why is devaluation a defaulting magic trick?
For example, if you borrowed a million, and the currency devalued by half, it’s equivalent to only repaying $500,000 in actual purchasing power.
In 1971, the US managed to make the world pay by tearing off the gold standard—the purchasing power of the dollar evaporated by 70% in an instant.
Here comes the problem: devaluation cannot be played alone
The US is the world's largest buyer; if it forcibly devalues, other exporting countries will suffer quickly:
Japanese cars become 25% more expensive, Toyota is the first to suffer
German manufacturing can't be sold, energy costs explode first
Chinese factories face order disruptions, employment pressures increase
So the US forces the world to devalue together; if you don't want to go to hell, jump with me.
Does China dare to fight back? Absolutely confident
Complete industrial chain: from masks to rockets, all handled in-house
Domestic market: 1.4 billion people support the consumption base
Infrastructure king: ports, railways, and 5G leave Europe and the US far behind
Foreign exchange reserves of $3 trillion: as solid as a rock
In the trade war, who gets hurt more?
US pain points:
Walmart products have increased by 34%, public outrage is boiling
iPhone production costs in the US soar by 50%, even Cook is anxious
National debt interest burns $1 billion a day, fiercer than military spending
China's buffer:
The proportion of exports to GDP has dropped from 35% to 14%, no longer single-minded
Exports of new energy, photovoltaics, and lithium batteries have surged by 67%
The 'Belt and Road' friendship circle has expanded to 152 countries
Who can hold out the longest?
This contest is like a 'global blink contest':
The US bets: see who starves to death first
China bets: see who gets crushed by high consumption first
The reality is:
Internal division in the US: capital wants profits, the public wants low prices
Chinese factories upgrade: no longer making socks, now making electric vehicles
The world seeks alternative paths: more and more countries are abandoning dollar settlements
Final harsh words:
Don't think it's just a stalemate now, signs of breakage have already appeared—
In 2023, China's automobile exports surpassed Japan for the first time, sounding the first trumpet of victory.
The real test is not on the battlefield, but in time.
The truth about why the US is not fighting a trade war? In one sentence: too much debt, trying to default!
Now, the US national debt has reached $36 trillion, equivalent to every American being born with a debt of $120,000. Faced with this astronomical debt, the US resorts to an old trick—devaluing the dollar!
Why is devaluation a defaulting magic trick?
For example, if you borrowed a million, and the currency devalued by half, it’s equivalent to only repaying $500,000 in actual purchasing power.
In 1971, the US managed to make the world pay by tearing off the gold standard—the purchasing power of the dollar evaporated by 70% in an instant.
Here comes the problem: devaluation cannot be played alone
The US is the world's largest buyer; if it forcibly devalues, other exporting countries will suffer quickly:
Japanese cars become 25% more expensive, Toyota is the first to suffer
German manufacturing can't be sold, energy costs explode first
Chinese factories face order disruptions, employment pressures increase
So the US forces the world to devalue together; if you don't want to go to hell, jump with me.
Does China dare to fight back? Absolutely confident
Complete industrial chain: from masks to rockets, all handled in-house
Domestic market: 1.4 billion people support the consumption base
Infrastructure king: ports, railways, and 5G leave Europe and the US far behind
Foreign exchange reserves of $3 trillion: as solid as a rock
In the trade war, who gets hurt more?
US pain points:
Walmart products have increased by 34%, public outrage is boiling
iPhone production costs in the US soar by 50%, even Cook is anxious
National debt interest burns $1 billion a day, fiercer than military spending
China's buffer:
The proportion of exports to GDP has dropped from 35% to 14%, no longer single-minded
Exports of new energy, photovoltaics, and lithium batteries have surged by 67%
The 'Belt and Road' friendship circle has expanded to 152 countries
Who can hold out the longest?
This contest is like a 'global blink contest':
The US bets: see who starves to death first
China bets: see who gets crushed by high consumption first
The reality is:
Internal division in the US: capital wants profits, the public wants low prices
Chinese factories upgrade: no longer making socks, now making electric vehicles
The world seeks alternative paths: more and more countries are abandoning dollar settlements
Final harsh words:
Don't think it's just a stalemate now, signs of breakage have already appeared—
In 2023, China's automobile exports surpassed Japan for the first time, sounding the first trumpet of victory.
The real test is not on the battlefield, but in time.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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