Funeral of US Hegemony and Rise of Cryptocurrencies

Sajjad Hussain
Jun 26 · 4 min read
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According to the Observer Network report, the US economy is currently in serious decline. In the face of this situation, the United States has nowhere to go. In the second quarter of 2020, it has issued 1 trillion USD, nearly $3 trillion in national debt. Many people say that this is a printed feast of dollars. The issuance of nearly US$3 trillion in national debt will certainly allow the United States to weather the current crisis and reduce the trend of economic downturn, but it is clear that the United States will do a global funeral. The United States has always been the largest economy, but at the same time when the economy is developing rapidly, they are also carrying heavy debts. The reason for this situation has a lot to do with the poor soldiers of the United States. After the end of World War II, the United States has launched many wars one after another. For example, the Afghan war has not been ended so far. Although the casualties of the United States in these wars are not particularly heavy, the economic losses are extremely serious. There used to be a sentence describing war: when a cannon sounded, gold was worth two thousand. This sentence is also clearly reflected in the wars waged by the United States.

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In the past, the development of the United States has always been in an ascending stage, so even though they are heavily in debt, they have not had too many problems. But the situation is different now, because the country’s economic development is not going backwards, the unemployment rate is rising, and their development has been under certain pressure, so the hidden debt crisis is naturally exposed. It also makes the United States panicked, not knowing what to do.

In fact, as early as 2008, the United States had experienced a financial crisis, and the way the United States fought against the financial crisis at that time was also to issue treasury bonds. But as we said above, the way of issuing treasury bonds can certainly allow the United States to weather the current crisis, but this only buries the crisis deeper rather than eliminates it. When one of these mines explodes, the dollar hegemony will collapse. According to information from the US Treasury Department, they expect to increase $677 billion in loans in the third quarter. If the United States does so, their scale of development for the entire fiscal year will be close to $450 million. You can also see from this point How much pressure they have today.

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It should also be noted that the US private debt situation is also very serious. Many Americans have always adhered to the concept of advanced consumption. Under normal working conditions, this consumption concept will not cause them too much trouble. But today’s situation is rather special. Many people have lost their jobs, and the debts owed before have become the pressure of their lives.

The United States has an advantage over other countries, that is, the dollar’s international hegemony. Whenever there is a crisis in the US economy, they try to pass on the crisis to other countries through human operations. This is also one of the ways in which the US guarantees its status. But this is just a printed illusion, and now the hegemony of the US dollar is shaken. According to the forecast released by the relevant US agencies, the country’s deficit budget this year is likely to increase from the initial US$ 984 billion to 3.8 trillion In the US dollar, the ratio of debt to GDP is even more likely to reach a new high.

his is no wonder that Trump has always wanted to restart the economy. If the United States continues to do so, then this will not only affect short-term development, but even directly affect the international status of the United States. It’s just that Trump reversed the order of solving the problems. If they can’t control the development of the epidemic, restarting the economy is just a slogan. Of course, judging from the current epidemic situation in the United States, if they really want to control the development of the epidemic, they must pay a heavy price, which is why Trump has always tried to downplay the impact of the epidemic.

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