At the beginning of 2024, the US Treasury announced a blockbuster news, local time on January 2, the total US national debt exceeded 34 trillion US dollars for the first time, creating a new milestone! Such news is undoubtedly explosive, the time for the total US debt to increase by $1 trillion is getting shorter and shorter, and last year it only took half a year to increase by $2.4 trillion! It seems the White House has become addicted to the poison of debt. Surely seeing this news, Japan, the largest holder of US debt, must be shivering.

According to the Congressional Budget Office, over the next 30 years, the total national debt will not decrease, but will double! At the end of 2022, the ratio of U.S. debt to GDP was 97%, and it will soar to 181% by 2053, and the federal government is expected to spend $5.4 trillion a year on interest by then! The hole of US debt is being dug bigger and bigger by the US government, as if it is dragging everyone with it. It is precisely because of seeing through the "US debt trap" that China has begun to take active action in recent years. According to the latest data from the US Treasury Department in December 2023, China sold $8.5 billion of US Treasuries again in October, the seventh consecutive month of reduction, and the total size of its debt holdings fell to $769.6 billion, hitting a new low in 14 years. In the foreseeable future, China will continue to reduce its holdings of US Treasuries, and the figure of $769.6 billion is definitely not a record low. In contrast to China's practice, Japan and the United Kingdom, perhaps kidnapped by the high level of the "dollar", or rooted in their bones, chose to increase their holdings of US bonds during the same period, which also made their position as the first and second largest foreign creditors of the United States more secure. The US debt will crash! It is inevitable that this will happen in the future, and it is hard to believe that such a simple numerical problem has so far blinded so many elites. The fiscal revenue of the United States in the fiscal year 2022 was 4.9 trillion US dollars, the figure in 2012 was 2.449 trillion US dollars, a 10-year growth rate of about 100%, according to this growth rate, it is optimistic that the fiscal revenue of the United States will reach 9.8 trillion US dollars in 2032. The Congressional Budget Office predicts that interest payments on US debt will reach $1.4 trillion in 2032, which will account for nearly 15% of US revenue that year. The remaining 85% have to maintain social security, medical care, education, continue to provide foreign aid, but also to pay for high military expenditure, it is not an exaggeration to say that there is a shortage of money.

What to do? More debt, of course! But what happens if the debt keeps going like this?

At some point in the future, we will see the annual interest payable on US debt exceed the annual revenue of the federal government, and we will see the Ponzi game completely collapse due to an unpredictable but reasonable accident. What we can see, the U.S. government must also see, or the two parties would not be fighting each other in Congress over the debt issue. But even with the slogan of "control the debt", the debt has not been reduced, but continues to grow! What gives these politicians so much courage? The answer, perhaps to the surprise of many of your comrades, is the Federal Reserve! Yes, this is the central bank that is said to hold the nuclear weapon of the US economy! You know what? The Federal Reserve makes a profit every year, and this part of the profit will be handed over to the US Treasury, and these profits are mainly from the interest and spread of bonds obtained by the Federal Reserve through open market operations, and the Federal Reserve is the largest buyer of US bonds... Smart friends see here estimated that the heart has long started to call "good guy"! This means that the U.S. government can borrow a lot of money from the Federal Reserve without interest, and the Federal Reserve, as the central bank, is responsible for printing dollars, which means that no matter how much debt the U.S. government issues, the Federal Reserve can theoretically eat it, and there is no interest paid by the government.

Playing with the Fed's "backstop" is an important reason why successive US presidents have changed their routine. After all, there's no better way to spend money than to tighten your belt and save money. Bad behavior is "accustomed to come out", the Federal Reserve's backstop practice not only spoiled Wall Street, so that they dare to leverage to the maximum, but also spoiled the United States government, so that they dare to issue debt and money without restraint, such a practice will inevitably thunder in the future! The truth is very simple, the Federal Reserve's "backstop behavior" is actually a large number of additional dollars, and with the rise of other economies, the United States' "one super" status is being increasingly strong impact, a large number of dollars are returning to the United States, it can be predicted that an unprecedented inflation crisis will engulp the United States in the future. The Fed's backstopping is merely bringing forward the timing of the crisis. But for China, when that day comes, we have completely eliminated the risk in our hands, and the small amount of US Treasuries we still hold at that time will not pose any threat to us even if it is hit by a thunderstorm, and the other countries that are still increasing their holdings of US Treasuries at this stage can not be said. Two people see a bottomless pit on the ground at the same time, one person is thinking about how not to fall into it, the other person is thinking about how to climb out after falling into it, the comrades think that these two people who are more intelligent