The U.S. national debt has reached a staggering 31.6 trillion dollars, having already hit the debt ceiling.

Treasury Secretary Yellen has repeatedly requested to raise the debt limit to continue borrowing money for economic development, as there are simply too many areas that require spending.

However, the U.S. Congress has not yet raised the debt ceiling.

But based on past experiences, the U.S. has raised the debt limit many times before, and this time will likely be no different; it's just a matter of time.

After all, to keep the financial game of "borrowing new to pay off old" going, the debt ceiling must continue to be raised, more money must be printed, and the U.S. must continue to "suck up" gold from around the world.

Recently, Treasury Secretary Yellen indicated that by 2033, the U.S. could raise the debt ceiling from 31 trillion to 51 trillion dollars.

The news is like a depth charge suddenly dropped into calm waters, instantly creating a huge splash.

What is the concept of 51 trillion dollars?

Advertisement

In 2022, the U.S. GDP was 25 trillion dollars, and such a high debt ceiling is already more than twice the U.S. GDP, almost half of the global GDP, it's crazy!

If this bill is passed, it means that the U.S. will start a super money printing machine, transferring its own crisis to the world, dragging the whole world to pay the bill, and "harvesting" global wealth in one fell swoop.

In the not too distant European and American banking crisis, the Federal Reserve has already started the money printing mode, raising interest rates while printing money, an operation that is probably only seen in the U.S. Due to the bankruptcy of Silicon Valley Bank in the U.S. last month, it triggered a series of chain reactions.

To avoid triggering a financial crisis, the U.S. had no choice but to intervene to prop up the market.

The Federal Reserve personally stepped in to save the market.

In one week in March, the Federal Reserve expanded its balance sheet by 297 billion U.S. dollars.

Expanding the balance sheet means printing money.

It should be known that the Federal Reserve started to shrink its balance sheet from June 2022, gradually "retracting water".

However, in March this year, the U.S. banking crisis broke out.

To avoid the further expansion of the crisis, the Federal Reserve could only quickly "release water", printing nearly 30 billion U.S. dollars in a week, equivalent to half a year of "retracting water" directly in vain.

Since the U.S. has not yet passed the bill to raise the debt ceiling, the Federal Reserve's operations can only be more cautious.

If it stops raising interest rates, inflation will continue to rebound, and last year's interest rate hikes will become a mirage; but if it continues to raise interest rates, any carelessness will continue to trigger the banking crisis and trigger a global financial crisis.

Therefore, the U.S. is now like walking on a tightrope on the edge of a cliff, and any carelessness will fall into the abyss.

Every step the Federal Reserve takes now affects the nerves of the global financial industry.

On April 3, oil-producing countries such as Saudi Arabia, Russia, Iraq, and the United Arab Emirates announced a reduction in oil production, and it will continue to be reduced until the end of 2023.

This is another bad news for the U.S., and the U.S. will be headache again.

Because, the most direct impact of oil production reduction is the rise of oil prices, and the rise of oil prices will further raise the level of inflation.

It should be known that the U.S. is reducing inflation through interest rate hikes, but it never thought that oil-producing countries would suddenly make this move.

The Federal Reserve is estimated to be even more worried.

It's not easy to reduce inflation to the current level, but the international oil price is going to rise again.

If the Federal Reserve does not raise interest rates, inflation will be more fierce under the drive of rising oil prices.

If it continues to raise interest rates, the crisis of the U.S. banking industry will continue to be triggered, and the Federal Reserve has fallen into a dilemma.

If the U.S. is standing on the edge of a cliff, then this move by oil-producing countries is pushing the U.S. to the most dangerous place on the edge of the cliff.

Now, countries are "de-dollarizing".

When the fire has already started, the safest thing to do is to stay away from the fire.