Sana'a - Saba:
Concern has recently increased regarding the future of the global economy, as a result of the volatile economic indicators for the US economy.
After investors (countries, institutions, and individuals) viewed US Treasury bonds as a safe haven for their investments, their confidence in these bonds has begun to erode, causing a significant shift in the US bond market.
Phantom Economy
Amid these indicators, a number of important questions arise, including the fact that the US government issues bonds to finance the federal budget deficit resulting from spending exceeding tax revenues, to what extent does America rely on these bonds to finance its programs such as defense, healthcare, and infrastructure?
Economic expert and member of the Yemeni Shura Council, Ahmed Shamakh, says that the US economy is essentially a phantom economy, devoid of any foundations, the United States is a non-productive country, considered a consumer country, and borrows approximately five billion dollars daily. The US Federal Reserve issues dollars without backing and continues to print dollars without complying with the US requirement that developing countries print their currencies under cover, it uses its political and military power to do so and to blackmail other countries.
He explained that the United States is exerting pressure, as countries such as the Gulf states, for example, deposit the value of their oil sales in the US Treasury, through treasury bonds, and the US stock market. America invests this money to finance its budget deficit and implement its programs in defense, healthcare, and infrastructure, it also uses this money to destroy countries not subject to America and to support countries hostile to the Arabs, such as Israel.
Military Power for Economic Dominance
The strong demand for US bonds boosts the value of the dollar, because owning and investing in bonds requires purchasing dollars, to what extent does this contribute to maintaining the dollar's status as the global reserve currency and strengthening its dominance over the financial system?
In this regard, economic expert Shamakh asserts that the United States imposes certain policies to dominate the financial system, it does so not through its economy but through its military power, and it uses this power to benefit the economy by blackmailing many countries.
He explains: "In reality, the global price of the dollar is an imaginary, unrealistic price. For example, the dollar in Sana'a is worth approximately 530 Yemeni riyals, but its real value is supposed to be no more than 100 riyals. However, the Jewish lobby in America works to monopolize global economic policies and currencies and reduce all weak countries to mere dependent economies. Although some of these countries could be liberated and their economies would be better than those of the United States, unfortunately, all their assets and wealth are being blackmailed by the United States and industrialized countries."
Low Interest
The US bond market is one of the largest and most important financial markets, with a value of $29 trillion. What is the impact of US bonds on attracting foreign investment in America?
The economic expert, a member of the Yemeni Shura Council, asserts that interest rates on US Treasury bonds are very low and not attractive for investment. Indeed, some developing countries issue bonds or treasury bills with interest rates much higher than those of US bonds. However, the United States uses its political and military power to dominate the financial system and attract investment, as the world witnessed when US President Donald Trump visited the Gulf states and returned with trillions of dollars.
Shamakh points out that if wealthy Arab countries invested their money in large projects across various sectors in Arab countries, they would earn interest and profits at a rate much higher than the interest on US Treasury bonds, this would also contribute to the process of integrated development among Arab countries. However, the so-called "Gulf Economic Bloc" is considered an economy subordinate to major powers and does not serve Arab economies in general, and the revenues of these countries go to countries hostile to Arabs and Muslims.
M.M
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