WILL THE US DEFAULT? 188 Tons of Gold Land in China, Transforming Economic Power!|AsianQuickTake

Welcome to Asian QuickTake! I’m Jacob, your host, delving into global news, international relations, and technology updates. From the 2008 US subprime crisis, major economies like the US, Europe, and Japan adopted unconventional monetary policies to boost recovery. But these policies led to debt and inflation issues. Zero or negative interest rates became traps for developed economies. The IMF’s debt-to-GDP limit was crossed, leading to easy borrowing, and dependency. Inflation surged in developed countries since 2021. Some saw rates over 20%. Contractionary monetary policies were initiated to combat inflation, but they caused more problems. The US, highly reliant on debt, faced rising debt interest costs due to rate hikes. With the national debt exceeding $32.7 trillion, a crisis looms. Fitch Ratings downgraded the US credit rating in 2022, projecting a worsening fiscal situation. US deficits are rising significantly, impairing effective governance.