The United States often has fiscal deficits. Why is the United States still the richest country in the world?

As we all know, the United States is a debt-ridden country, and fiscal deficits are a common occurrence for the United States. What is strange is that despite this trend in the annual economic balance-of-expense ratio, the United States is still the richest country in the world. , what’s the trick in this? Where does this money come from?

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First of all, although the United States spends more than its income every year, this does not prevent them from consuming. Where does the amount of money used for consumption come from? Of course, it is borrowed from other countries, and the money must be repaid. These other countries are usually China and Japan. Because our country’s import and export trade has strengthened, and the common international currency is the US dollar, the RMB has not yet developed at that time, so all our import and export economic transactions are in US dollars, but the US dollar does not work in our country, and the currency in circulation in our country is RMB. So these dollars were lent by our country to the United States.

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The universality of the US dollar ensures that the United States can occupy a large position in the world. Because every country in the world needs U.S. dollars, tourists traveling abroad need to exchange U.S. dollars in advance to ensure that they can use currency that can be circulated in foreign countries. Although the United States' global power is enviable, everyone also hopes that it will go bankrupt and abdicate. But if the United States goes bankrupt and the U.S. dollar is cancelled, no other currency will be able to replace the U.S. dollar as a currency that can circulate around the world.

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As a result, there will be an economic crisis around the world, and various countries will also be in financial trouble as a result. Therefore, even though the United States has a regular fiscal deficit, other countries still dare not let it go bankrupt. If there is a financial problem in the United States, other countries will definitely lend a helping hand to the United States in order to protect their own economic interests. After the United States receives support from other countries, it no longer needs to be afraid of its own fiscal deficit, so it has still maintained its status as the richest country in the world for so many years.

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The United States has never stopped investing in various countries, and because of this, the United States is in debt. However, as long as other countries want their economies to continue to develop, they will buy U.S. Treasury bonds, which is equivalent to making money for the United States. Therefore, even though the United States has a regular fiscal deficit, it will not go bankrupt by collecting the interest paid to it by other countries every year. Moreover, the financial strength of the United States is still very strong. After all, after so many years of development, it still has some savings, so although it has a fiscal deficit, it will not go bankrupt so easily. Moreover, the consumption pattern of American citizens is intraday consumption, that is, the money earned on that day is used on the same day. This consumption pattern keeps the U.S. economy and industry in a process of continuous advancement, and it also stimulates the desire of other countries to develop their economies. , and for a time, the international economy was booming.