What should we do if the country has too much debt and can no longer pay it back? What should we do if the country has no money and needs to spend money?
I just read an article and I was very inspired. Why did Bitcoin skyrocket? Many people still don't understand. After reading this article, I understood it. In Chinese history, Wang Mang, Emperor Wu of Han, and Emperor Qianlong all did it.
It is to create a new currency that is larger than the original one and has a higher value than the original one, which is actually the same. Then, the government uses its power to give the new currency a value that is 10, 20, or 30 times that of the original one, so that the original debt can be paid off.
This is the action the United States is taking to repay 36 trillion dollars in debt, which is deeply inspiring.
What this American is doing seems to be something that we Chinese people have done thousands of years ago. It seems that we Chinese are indeed the smartest people in the world.
This issue is encountered throughout history, regardless of time or place.
In ancient times, currency reforms and operations that changed currency values, like those during the periods of Wang Mang, Emperor Wu of Han, and Emperor Qianlong, often had complex historical backgrounds and intentions. For instance, during the reign of Emperor Wu of Han, faced with financial strain, reforms to the currency system and other economic measures were implemented to strengthen central financial control and replenish the treasury to support various expenditures such as construction and military. Wang Mang's currency reform was more complicated and somewhat idealistic, but in the end, the actual effects were largely unsatisfactory, leading to economic disorder and many other problems. These measures indeed reflected the ruling class's attempt to use economic regulation to solve some financial or economic management challenges 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 safe-haven asset akin to 'digital gold,' the influence of large capital, and changes in the global financial regulatory environment. Its value is not assigned by the government or guided as a debt repayment tool.
The United States faces enormous debt, primarily responding and adjusting through conventional fiscal policies (such as adjusting taxes and government spending), monetary policies (like the Federal Reserve's interest rate hikes and cuts, quantitative easing operations that affect the circulation and value of the dollar), and issuing national bonds. It has not treated Bitcoin as a means of debt repayment similar to the changes in currency value in ancient China. Furthermore, under the modern international financial system, there are internationally accepted rules and a relationship of mutual checks and cooperation among many countries, which fundamentally differs from the situation in ancient feudal dynasties where the currency system was adjusted domestically.
So, although there may seem to be similarities from the perspective of using changes in currency value to address debt, the differences in terms of actual operations and the environments involved are still very significant. Of course, the economic management explorations and practices of ancient Chinese ancestors, which are full of wisdom, are indeed worth in-depth study and reference.#ETH持续飙升