22 Trillion Debt: Why the US Still Stays afloat

American economy set another anti-record. The US budget deficit was 4,4% of GDP, or $ 1,067 trillion. The public debt of a leading world power exceeded 105% of its GDP, jumping over the 22 trillion dollar bar. For any other country, such a debt burden would be unbearable, but the “hegemon” is worth it. What could be the last straw that breaks his back?




Frankly speaking, such stability, incredible by any standards, is a direct consequence of the status of the United States as a world hegemon, which, if desired, is capable of breaking through the knee any person who disagrees with it policies. In this context, the US dollar is more than just an American national currency. Political analyst Alexey Chernyaev explains:

The size of public debt is a function of the country's position in the world system. And while the United States remains hegemonic in the global system, they, in fact, can afford any amount of public debt and budget deficit without visible consequences.


However, the foregoing does not mean the inexhaustibility of this system. Washington's loss of its special position will ultimately lead to its collapse. And some prerequisites for this are noticeable now.

Without the possibility of further continuous expansion, capitalism, having seized all significant markets, inevitably came to its crisis. President Donald Trump, as the representative of the so-called “Imperials,” proclaimed a course towards the collapse of the former globalist world order system. The world economy began to rapidly segment because of the trade wars it launched, the old international alliances began to fall apart, and new ones were formed in their place. Trump himself leads to the fact that the United States from the "hegemon", surrounded by faithful vassals, become the power of "number one" among others.

But the “imperial” Trump is not going smoothly. Brought to power by the "Rednecks" who believed him, he began to pursue a policy aimed at supporting primarily large businesses. Donald Trump's protectionism benefits corporations, but also hits small businesses. For example, under Chinese counter-sanctions, a painful blow was inflicted on American farmers producing soybeans and other food products.

The US president also reduced taxes, which pleased the layer of the richest fellow citizens, but the same measure reduced revenues to the federal budget, increasing its deficit. A year ago, Trump demanded a 5% reduction in cabinet spending, but a new anti-record was set instead. As a result, on the eve of the United States began an indefinite strike of workers at the leading automaker General Motors. 31 plants stopped working, more than 50 thousand of their employees demand higher salaries, better medical insurance and job security.

The US economy is still growing, fueled by Trump's active protectionist measures, but its further slowdown is forecasted against the backdrop of a trade war with the PRC. For the slogan "America First" you have to pay a dear price, because other countries have a different opinion on this. The last straw may be an attempt by the US president to devalue the dollar to gain a competitive advantage for national producers over China. This will give a certain effect, but it will also have a downside.

In the medium term, against the backdrop of the further strengthening of the PRC and the inevitable sovereignty of Europe, the United States may lose its status of world hegemon with all the consequences for its position as the main debtor. It is possible that the United States itself will go to the restructuring of its debts, without waiting for an uncontrolled collapse, about which we detail told earlier.
Used photos: http://dp.ru
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  1. steelmaker Offline
    steelmaker 18 September 2019 13: 25
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    Because the dollar is an international payment currency!
  2. serge Offline
    serge 18 September 2019 14: 59
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    For any other country, such a debt burden would be unbearable, but the “hegemon” is worth it.

    Marzhetsky hurray agitator you ours, look at the national debt of Japan.
    1. Marzhecki Offline
      Marzhecki (Sergei) 19 September 2019 06: 47
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      Calling me an agitator, much less cheers, it's just ridiculous lol
      1. serge Offline
        serge 20 September 2019 20: 34
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        Otherwise, before issuing the article, the author studied the question better (what about the debt of Japan, they did not deign to answer, only a smiley face). The level of preparation of the article, in which the only message is: "America is kapets," and says that this is a jingo campaign, like the author, respectively.
  3. Citizen Mѣshkov (Sergѣi) 18 September 2019 19: 40
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    You ask why everything is still “afloat”? yes because ... does not sink!
  4. Sergey Latyshev Offline
    Sergey Latyshev (Serge) 19 September 2019 11: 20
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    why why? and see who else is in debt? And nothing live ...

    And what not to borrow, just give?
  5. Savigne Offline
    Savigne 19 September 2019 19: 40
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    22 Trillion Debt: Why the US Still Stays afloat

    Probably because, after deducting all debts and offsetting assets, the United States still has almost 69 trillion. dollars "on your pocket." And this is actually the richest state of the planet.
    Or maybe because the United States is, economically, a third (33,9%) of the entire modern world.
    In general, rumors about the bankruptcy of the United States, they are funny and naive. But suckers believe in them. Probably because they really want it. Not realizing that the collapse of the USA is the collapse of the whole modern world. Those. This is the same.
    Unlike the same USSR, which, economically, did not even reach close to 1% of the whole world. Those. was just a little over 0,5% of the global level. A trifle, in general, pot-bellied. The level of the second ten countries of the world.

    The public debt of a leading world power exceeded 105% of its GDP

    Information is nothing. What does GDP have to do with the ability to pay debts?

    For any other country, such a debt burden would be unbearable, but the “hegemon” is worth it.

    Because any other, even near the United States, is not lying around. Economically, China (today it is the second, but by the end of 2019 it will most likely be the third, after Japan) is only 24,7% of the US level. And only 8,4% jn of the global level.

    What could be the last straw that breaks his back?

    Only interracial conflict within the United States. The USA has no other dangers in the world today.

    Washington's loss of its special position will ultimately lead to its collapse.

    And why did the author suddenly decide that this same loss is coming to the USA?
    In 2016, the United States (economically) accounted for 30,1% of the global level.
    In 2017 - 31,1%.
    In 2018 - 33,9%.
    Dynamics in favor of the United States. Something somehow "loss" is not visible even on the horizon.

    And some prerequisites for this are noticeable now.

    Those who want to see the "background" they will always be noticeable. But this does not mean that they really are.

    President Donald Trump, as the representative of the so-called “Imperials,” proclaimed a course towards the collapse of the former globalist world order system.

    What nonsense!
    Those. The United States decided to destroy the system in which they occupy a dominant position.
    Oh well. Strong "analytical article".

    For example, as part of the Chinese counter-sanctions, a painful blow was inflicted on American farmers producing soybeans and other food products.

    It is a pity that farmers do not know this.
    In general, over the past 3 years, from 2015 to 2018, the average American got rich by 14,6%. Having overtaken the average Swiss and becoming the richest man in the world.

    but its further slowdown is forecasted against the backdrop of a trade war with the PRC.

    All sorts of woe-analysts and "predicted."
    In the meantime, only the numbers:
    In 2018, a trade war with China (and not only it) led to:
    - The United States in 2018 increased its economic potential from 31,1 to 33,9% of the global level.
    - The average American in 2018 got rich by 9,35%.
    - The economic potential of China in 2018 decreased from 10,9 to 8,4% of the global level.
    - The average Chinese man in 2018 was impoverished by 23,2%. Almost a quarter !!!
    Therefore, the nonsense that the United States somehow lost from the trade war with China, it is not even worth attention.

    In the medium term against the backdrop of further strengthening of China

    Strengthening China? The author does not know the materiel, the numbers indicate the exact opposite. China is weakening, and so rapidly that at the end of 2019 we should expect to see Japan at the second step of the world ranking, and China, most likely, only at the third.

    inevitable sovereignty of Europe

    Europe is doing, oh, how unimportant. Now the euro has devalued to the level of the plinth, but still, things are going badly. It is possible that this alliance of thieves and paupers will soon order a long life.

    The United States may lose its status of world hegemon with all the consequences for its position as the main debtor.

    And a meteorite can hit the author directly on the forehead. No, but what. The probability is approximately the same. Why not write about her too?
    1. vvnab Offline
      vvnab (Vitali) 20 September 2019 17: 02
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      That's right, except this one ...

      Unlike the same USSR, which, economically, did not even reach close to 1% of the whole world. Those. was just a little over 0,5% of the global level. A trifle, in general, pot-bellied. The level of the second ten countries of the world.

      This is true of modern Russia, and the share of the USSR in world GDP was estimated at 10-15% (calculation methods changed). So not a trifle at all! They've been eating for twenty years ...
      1. Savigne Offline
        Savigne 20 September 2019 17: 20
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        Quote: vvnab
        This is about modern Russia rightly

        The share of Russia in the world economy in 2018 was 0,341%. This is the 21st place.

        Quote: vvnab
        and the share of the USSR in world GDP

        Read in my profile what I wrote about such an indicator as GDP.
        Rattle for suckers.

        Quote: vvnab
        So not a trifle at all!

        Read in my profile, I just today substantively argued that for all the most perfect scenario, the economy of the USSR could NOT be more than 1,792% of the global level. It also says why it could not even be 0,699% of the global level. I just don't want to repeat myself.

        Quote: vvnab
        They've been eating for twenty years ...

        What did you eat?
        I do not think that metal ores, oil, wood in logs and gas are the creation of the USSR. And with all this in the USSR in the late 80s and early 90s, there was already nothing to eat.
        And you say, "eaten for 20 years." You won’t eat empty space.
        1. vvnab Offline
          vvnab (Vitali) 20 September 2019 17: 35
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          What did you eat?

          Markets. Sales markets. "Oil for food ...", as in Iraq), as well as timber, metals, etc.
          And not only for food, in general for EVERYTHING! Over the next 10-15 years, imported goods almost completely replaced the domestic one. In the cap. the world is called "eat".
          1. Savigne Offline
            Savigne 20 September 2019 17: 46
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            Quote: vvnab
            Markets. Sales markets.

            Sales markets? Did the USSR have any sales markets? This is probably Cuba, Vietnam, Mongolia and others?
            The USSR did not have any sales markets, except for those that Russia has today. And he did not export the USSR anything but energy, metals in ingots and roundwood. And the fact that he shipped to his "sales markets" was not an export. Since no one was paying and no one was going to pay it. These were gifts of the USSR to their "friends."

            Quote: vvnab
            Over the next 10-15 years, imported goods almost completely replaced the domestic one.

            Soviet goods were uncompetitive. Since they were not goods, but erasatsy of goods. Things similar to real ones, but not really them. Bullshit, if you use fen.
            In a closed market, this bullshit was bought up. Because there was no choice. As soon as the choice appeared bullshit stopped taking. Because "we are not so rich as to buy low-quality things" (proverb).

            Quote: vvnab
            In the cap. the world is called "eat".

            And again, there was nothing to eat there.
            1. vvnab Offline
              vvnab (Vitali) 20 September 2019 17: 50
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              The USSR itself. Its population, and this is 250 million, by the way ...
              Competitive, non-competitive - the second question, but before 250 million were washed with Shipr soap, and steel was Dove, etc.
              1. Savigne Offline
                Savigne 20 September 2019 17: 54
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                Quote: vvnab
                Its population, and this is 250 million, by the way ...

                A bit really.