According to recent US media reports, the US economy seems to be facing a serious crisis. If proper measures are not taken, an economic collapse that is more devastating than the Great Depression may befall the United States in the near future.
The latest data shows that the US economy is already in danger, which is mainly attributed to the administration's aggressive economic policies. At the height of the pandemic in 2020, the U.S. government borrowed heavily to print money, while the Federal Reserve implemented an unprecedented monetary policy. Despite economists' warnings that these practices could lead to a crisis, the Fed is asking Congress to spend more and keep interest rates extremely low. The new government continued to raise spending above pre-pandemic levels, eventually causing inflation to soar to a four-decade high.
Against this backdrop, the Fed has aggressively raised interest rates 11 times to curb inflation. However, the move has resulted in prices for most goods and services being well above pre-pandemic levels, putting unprecedented pressure on American households.
The latest data shows that the M2 money supply has grown at a negative rate throughout the past three quarters, which means that the amount of available money is shrinking rapidly. The only sharp decline in the U.S. money supply in the past 110 years was in the early 2030s, when the Great Depression was at its peak. In addition, families across the United States are in dire straits, and more and more people are depleting their savings and going into debt to cover basic living expenses.
Economists say the collapse could have catastrophic consequences if the White House and Congress don't cut government spending soon. They recommend that the government take a series of measures to reduce the fiscal deficit, reduce the government debt, and rebalance the economy. These include spending cuts, higher tax revenues, and less government intervention in the economy.
The U.S. economy is facing a serious crisis, and if proper measures are not taken, this economic collapse could have a disastrous impact on the country and its people. We need to closely monitor the development of this crisis and take effective measures to meet the challenges.
The crisis not only poses a serious threat to the US economy, but also has a negative impact on global economic growth. Many economists worry that if the U.S. economy falls into recession, the global economy could also suffer. Therefore, countries need to strengthen policy coordination and cooperation to jointly address this challenge.
In this case, the White House and Congress need to act quickly to avoid an economic collapse. They can take a range of steps to reduce the fiscal deficit, reduce government debt, and rebalance the economy. In addition, they can strengthen financial regulation and risk management to reduce uncertainty and risk in financial markets.
The U.S. government needs to recognize the seriousness of the economic crisis and take all necessary measures to meet the challenges. At the same time, countries around the world also need to strengthen cooperation and coordination to jointly address global economic and financial challenges. Only through global cooperation and domestic policy adjustments can we ensure that the U.S. and global economies can grow steadily and create a better future.