When the spread of global concern, while U.S. dollar, a bubble in U.S. debt crisis is the near future. On the one hand, the U.S. dollar currency using the valuation effect , through debt or a disguised devaluation of the currency of the increase in national wealth. On the one hand, as the currency issuing countries, which can be through the issuance of foreign currency in order to fulfill payment obligations or dilution of foreign debt burden, that is, by default reserve currency devaluation in disguise to pay its external debt obligations. Only from 2002 to 2006, the cumulative amount of U.S. foreign debt disappeared 3.58 trillion. QE2 is the nature of the U.S. debt monetization. Fed with a can be regarded as the amount of days, the Treasury purchase program to support the global mobility strategy, which is backed by accelerating the transfer and redistribution of global wealth, global foreign exchange reserves in 2009 is 13 of global GDP, of which more than 60 U.S. dollar assets, which is over 50,000 billion dollars. In 2009, the total foreign holdings of U.S. assets, excluding financial derivatives, has reached the 2009 U.S. GDP of 1.25 times nominal depreciation of the dollar would substantially impaired and diminished the wealth, this is a blatant predatory wealth.
On the other hand, the United States through foreign long term investment for a large number of huge economic benefits. 3.5 with an average of 10 year U.S. Treasury yield level compared to the formation of a high foreign investment returns. U.S. external assets and liabilities of the return is big, but also a great difference between the risk value, suggesting that U.S. foreign investment is mainly concentrated in the high yielding risk assets and the external debt mainly in low yielding assets. Relying on United States dollar currency and the International Centre for strategic advantage in the global financial division received the largest global distribution of wealth and income, capital gains became the greatest access to global sources of surplus value.
U.S. dollar also gave birth to the current proliferation of 30 year U.S. bond bull market, with the short term interest rate trend to zero, the third quarter, U.S. bond yields remain low, the bond market is pushed to an extreme level. Recently, the 10 year yield closed at 2.48 lower, but this is likely to be reversed. According to the U.S. agency estimates, QE2 has the U.S. real interest rates down to 6.25 , global inflation expectations has been formed. Once the formation of high inflation expectations, real interest rates will lead to long term government bonds rose, increasing debt burden.
According to the U.S. government s former Comptroller General, the U.S. President and CEO David Walker Foundation estimates that if the U.S. government of national social security implicit debt of all outstanding loans and all together, then the 2007 The actual total debt of the United States has up to 53 trillion. Global GDP in 2007 was 54.3 trillion dollars, that is just a U.S. national debt, the debt has made the world close to 100 . Financial crisis in the United States into irreversible debt growth channel. Obama recently published under the Budget, in fiscal 2010 will rise to 94 of U.S. debt in 2011 will reach 99 , will rise up to 101 by 2012, debt on debt, to resolve the deficit with a deficit will be difficult to continue to rely on debt.
Today the U.S. dollar devaluation and disorderly torrent of serious injuries on the global economy has shaken the U.S. dollar credit based on the international creditors started to rethink the economic relationship between this imbalance, G20 on the eve of a number of countries have begun operations, and to advocate for building a new international sovereignty U.S. monetary system of checks and balances as spam, relying on U.S. hegemony in debt dependent economy for how long? It appears that the U.S. debt bubble burst not far away.
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