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When you think of Treasuries, you probably think of the tall buildings, the busy trading floors, or the bespectacled, scrambling traders in the stock market.
However, this time we will not start with these big scenes, we have to change the angle.
Have you ever thought that just around you and me, those ordinary living expenses can actually reflect a country's debt situation?
For example, if you go to the supermarket and buy a bottle of imported drink, it may be indirectly linked to a country's debt problem.
What so? Let me take my time.
First of all, it is important to understand the concept that the national debt is like a "credit card" of the state. The bill behind this "big credit card" is not a small amount.
Data shows that the size of the US national debt has reached a staggering $33 trillion. This number is simply staggering.
However, when it comes to global national debt, you may be wondering: How much does China rank on this big bill?
This brings me to my unique point of view. It is common to think that the national debt is more or less a direct measure of a country's economic strength, but I will say that it is not that simple.
For example, a large national debt is not necessarily a bad thing, but the key depends on how the debt is used.
Just like if you use a credit card to buy something, it is naturally worth buying something with a high return on investment, and if you buy some useless luxuries, the gain outweighs the loss.
Let's go back to China. The size of China's national debt ranking in the world is not that important. What matters is how China uses this debt.
You see, China's investment in infrastructure and technological innovation in recent years is not a small amount.
These investments, which may be debt in the short term, can be a powerful engine for economic growth in the long run.
Let's go back to the United States, which is the big head of 33 trillion. Don't think that this number represents the "big brother" status of the global economy. There are some risks behind this.
For example, the US dollar, as an international reserve currency, has too large a debt that could affect the stability of the global economy.
You see, it's like you owe too much money on your credit card, which can affect the entire credit system in the end.
Having said all this, you may ask: then how do we ordinary people care about national debt?
Quite simply, changes in national debt affect every aspect of your life.
From your pension, to the interest rate on your mortgage, or even the price of the bottle of imported beverages you buy, they can all be inextricably linked to the national debt.
At this point, I have one more question for you: if countries around the world reduce their dependence on the US dollar and seek other currencies or assets as reserves, how will this affect the stability and development trend of the global economy?
This question is actually more closely related to your and my lives.
Changes in the global monetary system can affect exchange rates, commodity prices, and even the environment in which we work and live in our daily lives.
For example, if other countries reduce their holdings of the dollar, it could lead to a depreciation of the dollar, which in turn could affect the price of U.S. imports.
This is like a big network, and the change of each node may affect the entire network.
So, is it really possible for the world to reduce its dependence on the dollar?
In recent years, some countries have begun to seek alternatives, such as increasing their gold reserves or considering using other currencies for international trade.
However, there is still a long way to go to completely replace the position of the dollar. After all, the dollar's status as an international reserve currency was not established overnight.
The answer to this question may take time to be revealed.
But in any case, we, as ordinary people, should also pay attention to these global economic megatrends, as they will eventually affect our lives in various forms.
Remember, economics isn't just about lofty concepts, it's hidden in the bits and pieces around you.
What do you have to say about this? Feel free to leave your thoughts in the comment section!