The national debt is too high and cannot be repaid. What should we do? The country has no money, and needs to spend money. What should we do?
I just read an article that greatly inspired me, asking why Bitcoin has surged? Many people still do not understand. After reading this article, I got it. In Chinese history, Wang Mang, Emperor Wu of Han, and Qianlong all did this.
It is essentially the same to create a currency that is larger than the original, with a value greater than the original. Then, using the power of the government, endow this new currency with a value that is 10, 20, or 30 times that of the original, so that the original debt can be repaid.
This is the action taken by the United States to repay its $36 trillion debt, which is quite inspiring.
What this American is doing seems to be something that we Chinese people did thousands of years ago. It seems that we Chinese are indeed the smartest people in the world.
This issue is encountered both in ancient and modern times, and in different countries.
In ancient times, monetary reforms like those during the periods of Wang Mang, Emperor Wu of Han, and Qianlong often had complex historical backgrounds and intentions. For example, during the reign of Emperor Wu, faced with financial pressure, reforms of the monetary system and other economic measures were taken to strengthen central financial control and increase treasury reserves to support various constructions and military expenditures; Wang Mang's monetary reform was more complicated and somewhat idealistic, but the actual effects were mostly not ideal, leading to many issues such as economic disorder. These measures indeed reflect the ruling class's attempts to use economic regulation to solve some financial or economic management problems they faced at that time.
Comparison of Bitcoin with the U.S. debt situation
Bitcoin itself is a decentralized virtual digital currency, and its price volatility is influenced by many complex factors, such as market speculation psychology, some investors viewing it as a 'digital gold' safe-haven asset, the push from large capital, and changes in the global financial regulatory environment. It is not assigned value or used as a debt repayment tool by the government.
The United States faces huge debts and mainly responds and adjusts through conventional fiscal policies (such as adjusting taxes, government spending, etc.), monetary policies (like the Federal Reserve's interest rate hikes and cuts, quantitative easing operations affecting the circulation and value of the dollar), and issuing national bonds. It has not treated Bitcoin as a means similar to how ancient China changed currency values to repay debts. Moreover, under the modern international financial system, there are internationally accepted rules and a relationship of mutual checks and cooperation among many countries, which is fundamentally different from the situation in ancient feudal dynasties adjusting their currency systems independently.
So although there seem to be similarities from the perspective of using changes in currency value to solve debt issues, there are still significant differences considering the actual operation and the environment. Of course, the ancient Chinese ancestors indeed had many wise economic management explorations and practices worth studying and learning from.#ETH持续飙升 