A Political Economic Analysis Of The Sustainability Of The United States' External Debt Model

After World War II,the United States gradually transformed itself from a creditor country into the largest debtor country.The accumulation of debt has not ended the hegemony of the United States.The huge amount of debt has become the source of its strength.Through the new international economic operating rules,it has constructed an external debt model with the US dollar debt cycle as its core.Under this model,the United States provides liquidity to the world at the expense of its own debt.Therefore,the sustainability of US external debt determines the stability of the world monetary system,and the current US external debt model determines the US's debt capacity.The discussion of current US debt patterns helps to understand the sustainability of the US balance of payments imbalances and the outlook for the monetary system.In recent years,the size of the United States' external debt and its rapid growth have attracted widespread attention from the international community.First,this article elaborated the transformation of the United States from a creditor's right to a debtor's country from a historical point of view.In this context,how does the United States use its own advantages to form its own debtor's logic? This article believes that the United States' expansion strategy and the "Triffin puzzle" under the Bretton Woods system have jointly promoted the transformation of the United States into a debtor country.In the context of the continuous expansion of the debt scale of the United States and the dollar's confidence crisis,the United States,by virtue of its dominance of the dollar in the world's currency system,has obtained financial support for the dollar from surplus countries and has maintained the international recycling model of the dollar.Afterwards,through the international division of labor,the developing countries were included in the U.S.production system,which opened up the cycle of U.S.dollars and extended the U.S.debt cycle.Then,the article elaborates on the current mode of operation of US external debt under the debtor logic.This paper analyzes the benefit transmission mechanism brought by the external debt cycle of the United States.The analysis perspective is mainly from industrial evolution,US dollar standard and debt adjustment mechanism.Through the transmission of interest,the United States has strengthened its own external debt model.Furthermore,this article summarizes the characteristics of the US external debt model from the perspective of mutual dependence,emphasizing its reciprocity,terror,asymmetry,and self-reinforcing system.Finally,the article analyzes and analyzes the basic factors of the dollar cycle and the debt cycle : the international division of labor,U.S.monetary and financial advantages,and external shocks have contributed to the economic crisis.It is believed that the current U.S.foreign debt model still has a solid foundation.What needs to be emphasized is that the international community has not yet replaced the United States with such an economic entity.This reflects the irreplaceable role of the United States.This chapter is also the conclusion of this article that the United States' external debt model is still sustainable.