The continued decline of the US dollar hegemony made the US economy worsen -visiting American economist Michael Hedsen

Xinhua News Agency, New York, July 18th: The US dollar hegemony continues to decline and worsen the US economist -visiting American economist Michael Hedsen

Xinhua News Agency reporter Liu Yan

Michael Hedsen, a professor of economics at the University of Missouri, said in an exclusive interview with Xinhua News Agency reporters in New York that the US dollar hegemony continued to decline, and the risk of unsustainable US government debt increased. Essence

Hedson said that the United States seriously relies on the finished products and raw materials of other countries, deep liabilities in the economy, and the degree of liabilities in US, enterprises, and local governments in the United States. After industrialization, Americans's high living standards and wealth are to a certain extent by the US dollar hegemony.

Hedson said that the strength of the US dollar lies in the accumulated US dollar accumulated in other countries to save US Treasury bonds or the US exchange exists in the United States. Using the US dollar means buying US dollar debt, which allows the United States to enjoy "free lunch".

According to data from the website of Peter Peter Sen Foundation, as of the end of June, the total liabilities of the US public sector were US $ 23.9 trillion, exceeding the GDP in 2021, an increase of 35%before the outbreak of the epidemic. In the context of high inflation and the Federal Reserve's interest rate hikes, US government debt's unsustainable risks increased.

Hudeson said that the US economy hit the "debt wall" and could no longer afford more debt. The prosperity of the US economy is supported by debt, "especially by foreign countries, and this has ended."

Hedeson said that the current US inflation is at the highest level in more than 40 years. The wealth owned by the rich in the United States has increased significantly during the new crown epidemic, which further exacerbates the gap between the rich and the poor in the United States. The Fed launched interest rate hikes this year to further increase the expectations of US economic recession, and American society will be more polarized.

Hedson said that due to US foreign policy, some countries adopt a strategy of going to the US dollar. It is a warning to the entire world after the U.S. crisis is upgraded in the Ukraine crisis, that is, the United States can capture any gold and foreign exchange reserves that do not obey the country's new liberal policy. This has led some countries to give up or reduce US dollar reserves and promote trade and investment based on other currencies.

According to data released by the International Monetary Fund, in the past 20 years, the proportion of the US dollar in global foreign exchange reserves has shown a decline as a whole. Essence

Hedson said that de -US dollarization is a long -term process, and the entire international monetary architecture will change. Although many countries will still use US dollars, the nature of the US dollar will gradually converge with other countries. The United States needs to pay costs and cannot continue to issue US debt without pressure.

- END -