In recent years, the virus ravaged in the world, inflation spread to the world, many countries’ economic development showed a recession situation, and can even be described as debt-ridden, of which, the United States and Japan’s situation is not optimistic.
According to statistics, the United States is about 30 trillion in debt, Japan is also very depressed, more than 12 trillion in debt, the same world’s three largest economies in China, how is the debt situation? What does it mean for the country to be in debt?
The world’s hegemon is actually the largest indebted country
As we all know, GDP is an important indicator of national economic development, and to a certain extent, the level of GDP can also reflect the national strength and wealth of a country. As the world’s hegemon, the United States is also the world’s largest economy, in people’s perception, the United States financial strength is very sufficient, but the fact is just the opposite, the United States is the world’s first country in debt.
The United States has risen very quickly, and in the last century two world wars, the United States seized the opportunity to leap to become the world’s hegemon, occupying the leading economic position for a long time, its strong science and technology and military power, for the United States economic development to provide a stable environment and super attractive.
So why did the United States fall into the world’s largest debtor country?
The rise of the United States relies on war, economic decline also originated from war, can be said to be the success of war, defeat also war.
Since the 21st century, the United States in order to continue the world hegemony, sitting on the “world police” identity, launched aggressive wars everywhere, since the Iraq War, the U.S. economy began to go downhill, followed by the war in Libya, the war in Afghanistan, war after war, so that the economies of all countries, the stability of investment in the U.S. has become suspicious.
Especially in 2008, this year for the United States, is full of uncertainties, but also a year of testing. First, the U.S. presidential election, followed by the outbreak of the subprime mortgage crisis, soon the storm of the financial crisis swept the world, countless countries into the economic crisis.
In the nearly ten years that followed, the U.S. economy stumbled, and as of 2018, U.S. debt reached more than $20 trillion, far exceeding that of the rest of the world.
To add insult to injury for the U.S. economy, a year later, the dreaded New Coronavirus began raging around the world.
Prior to this, the outbreak of the New Coronavirus was first seen in Wuhan, China, and while the Chinese people were heroically fighting the epidemic, the U.S. was gloating, expecting China to be struck down by the epidemic, and there were even so-called U.S. experts predicting that the Chinese economy would see an unprecedented setback during the epidemic.
Unbeknownst to the Chinese people, their determination to fight the epidemic was unparalleled, and their ability to fight the epidemic was so strong that in just three months, the war against the new crown was won in stages, and what caught the U.S. off guard was that the new crown virus soon swept the world, and the U.S. was no exception, and it was especially severe.
The United States has been routed time and again in front of the New Crown virus, with tens or even hundreds of thousands of infected people every day, which has not only made the U.S. government lose the hearts and minds of the people, but also in terms of the economy, which is in a huge predicament.
Compared to the end of 2019, three years of epidemic, the U.S. economic development has seen a huge recession, while the debt situation has occurred a rapid increase, it is estimated that by the end of this year, the U.S. debt will reach a staggering 30 trillion.
Compared to the frail giant that is the United States, Japan is like a larger paper tiger.
U.S. debt leads the way, “Japan’s little brother” follows closely
As a small follower of the U.S. for decades, Japan has lived up to its U.S. boss by following closely in terms of indebtedness.
Regarding Japan, we all know that this is a bullying nation, late in World War II, the United States of America’s two atomic bombs, one “fat” and the other “little boy”, respectively, dropped on Japan’s Hiroshima and Nagasaki. Since then, the scared Japanese have been honored by the United States, playing the role of a pawn.
As the first pawn of the world’s hegemon, Japan was given many opportunities to grow and even later became the world’s second largest economy, but this growth was like a water moon and a mirror, almost entirely determined by the United States.
For the Japanese economy, in fact, the United States, to a certain extent, completely regarded it as a captive fat sheep, when you want to slaughter can be, and later the facts also proved this.
In the late 1980s, the United States forced Japan to introduce the “Hiroshima Accord”, making the yen and dollar exchange ratio remains high, while the United States financial giant strong purchase of Japanese stocks, and then sold out, so that the Japanese economy suffered huge losses, while the United States is full of money.
The “wool-gathering” policy implemented by the United States, waves of wool-gathering behavior to Japan, so that the Japanese economy has never been able to achieve takeoff and independence, and after the outbreak of the epidemic, the United States can not take care of themselves, as a small brother of Japan, naturally will not be good where the economic development is slow or even recession.
Three years after the epidemic, Japan’s debt amounted to 12 trillion, second only to the United States. As the number one little brother of the United States, Japan in this point, the performance can be described as “loyalty”, to achieve the most difficult to do “in difficulty together”.
Compared to the United States and Japan, China is as stable as a mountain.
China’s debt is low and the economy continues to take off
As the world’s second largest economy, China’s GDP is second only to the dominant United States, and if we talk about the amount of debt alone, China’s debt situation is much stronger than that of the United States and Japan.
After the founding of New China, the economy steadily advanced, especially after the reform and opening up, China’s economy took off, and in just three decades, China’s GDP reached the second highest level in the world, surpassing Germany, France and the United Kingdom, creating a miracle in the history of world economic development.
It is recorded that China’s GDP, which totaled nearly 300 billion at the beginning of the reform and opening up, reached 18 trillion just a few decades later, an increase of nearly 60 times.
During the ravages of the New Coronavirus, China responded proactively with quarantine control and dynamic clearance, and the people’s unity of purpose and solidarity quickly overcame the epidemic and minimized its impact on the economy.
As of 2021, China’s debt is only $8.4 trillion, with a debt ratio of 15.5%, far below the international alert level of 20%, and well within a safe and reasonable range.
The U.S. debt of $30 trillion and Japan’s debt of over $12 trillion are both far beyond the international alert level line, while the national debt ratio is a measure of the country’s external dependence on economic growth. For countries with debt ratios below 20%, this is a positive sign, while for countries like the U.S. and Japan, which are far beyond the alert line, it is a sign of economic development recession.
An epidemic that swept the world was a huge test of the nation’s endurance and resilience, and China has withstood the test and its economy continues to take off, in stark contrast to countries like the United States and Japan.
