If the interest rate on US Treasury bonds really soars from 5 percent to 8 percent as the CEO of JPMorgan Chase said, then a big drama is about to be staged! The United States wants to revitalize the manufacturing industry? I am afraid that even this small spark of existence will have to be blown out by the wind. Do you want to bring the manufacturing industry of South Korea and Japan to the United States? Hey, this is no less difficult than ascending to the sky!
Capital has always been "profit-seeking like flies". On the one hand, it is to invest in manufacturing, which is risky and slow, and on the other hand, it is to buy treasury bonds, which has high returns and low risks. You say, how should this account be calculated? Who would be stupid enough to throw money into the manufacturing industry? It's like "picking up sesame seeds and losing watermelons," it's not cost-effective!
The United States is now "heavily indebted," with a debt of 35 trillion yuan, calculated at an interest rate of 8 percent, and a large amount of interest alone has to be repaid in a year. But what is the annual revenue of the United States? Not enough to pay off the interest! Not to mention that there are still so many expenses to be filled. What is the difference between borrowing new debts to pay off old debts and "tearing down the east wall to make up the west wall"?
The United States is now looking around for money to scrape some oil and water from others. But don't forget, China isn't that easy to mess with. Although our social wealth is large, it can flow out limitedly. The United States wants to make money from us? Hey, you have to be careful that "stealing chickens doesn't make rice"!
If you want me to say, what the United States is really looking for are Jewish conglomerates with huge wealth. Their money is the real "life-saving money". But let's not forget that the United States is now in a "domestic and foreign dilemma", dealing with both a domestic debt crisis and the threat of war abroad. In this case, I am afraid that only by "breaking the kettle" can we find a glimmer of life!
We don't know exactly how this drama will end. But what is certain is that the United States must re-examine its economic and foreign policy and seek a real solution. Otherwise, I am afraid that this big drama will only become more and more intense, and finally fall into a situation where it cannot end. Let's wait and see if the United States can find that silver lining and regain its footing.