Although the White House has consistently emphasized that there is no problem with the U.S. economy and that it will achieve a soft landing, the Federal Reserve has also repeatedly claimed that the U.S. will not fall into a recession. However, it is quite clear that economic data is the most objective and truthful, and only data cannot deceive people. Multiple data show that the U.S. economic crisis is becoming increasingly severe.

For ordinary people, in this global economic crisis, Americans have suffered the greatest losses, performing worse than Russia.

01

We can first look at it from a macroeconomic perspective.

In the first two quarters of this year, the U.S. GDP has shown positive growth, which seems to have nothing to do with economic recession.

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But if we look at the survival of businesses, we will understand. In the first seven months, the bankruptcy of large and medium-sized enterprises alone reached 402 cases, exceeding the data for the entire year of 2022.

Since the U.S. announced the inflation reduction bill last August, it has been striving to stimulate the development of the new energy industry. However, this industry is facing more and more problems.

An electric bus manufacturer filed for bankruptcy this month. The name of this company is Proterra, which has a certain reputation among ordinary Americans because this company is often praised by American officials. But now the bankruptcy of this company just shows that the current situation of electric vehicles in the United States is not good.

The competitor of this company, Nozdon, announced bankruptcy two months ago.The more subsidies the United States provides in the field of new energy, the less capable the industry becomes of withstanding global competition.

From another bill, the CHIPS and Science Act, we can also observe that since the introduction of subsidies, the stock prices of publicly traded companies in the U.S. chip industry have actually experienced a significant decline.

It is quite evident that the U.S. government is exerting effort without gaining favor, essentially spending money to invite trouble.

02

Let's take a look from the perspective of individual microeconomic units.

The United States releases a set of data every quarter through the Federal Reserve that involves the asset volume of average American households. If we combine this data with the wealth report recently published jointly by UBS and Credit Suisse, we find that in the context of a significant global shrinkage of private wealth throughout 2022, the total amount of wealth loss among the American public has won the championship.

The last time there was a reduction in global private wealth was during the subprime mortgage crisis in 2008. And last year, the total amount of global private wealth decreased by $11.3 trillion, with the reduction in the United States reaching $5.9 trillion, accounting for more than half of the global total.

In fact, it is quite normal for personal wealth in the United States to decrease, as almost all major U.S. assets experienced negative growth in 2022.

The assets of ordinary people are mainly distributed in real estate, stocks, and bonds, with a concentration in stocks and bonds, and most people hold them through mutual funds.

However, in 2022, the U.S. stock market plummeted, and U.S. bonds also experienced a significant decline, with the drop in government bonds alone reaching more than 18% at its highest.At the same time, after reaching a peak in the middle of last year, the U.S. real estate market gradually declined in the second half of the year.

On the contrary, Russia, which the U.S. has been deliberately suppressing, has surprised the American public with its performance in this area. In 2022, not only did Russia's private wealth not decrease, but it actually increased by more than $600 billion.

03

Therefore, whether from a macro or micro perspective, the U.S. economic crisis is continuously escalating.

The U.S. has always hoped to reap the benefits of other countries to escape the crisis, but in this round of crisis, the U.S. has instead reaped its own 402 companies and $5.9 trillion in private assets.

Firstly, inflation has affected the U.S. economy, with the CPI reaching over 8% for most months last year. Although it has slightly declined this year, the month-on-month data is still rising, indicating that prices have not only not decreased but are also continuously increasing.

Inflation has eroded the profits of most companies, even causing some companies to incur losses. This is also the reason why the number of bankruptcies among large and medium-sized enterprises in the first seven months of this year exceeded the total for last year.

At the same time, inflation has also eroded the wealth and purchasing power of most people.

On the other hand, the inappropriate interest rate hike by the Federal Reserve has also caused a significant drop in the U.S. stock market and bond market, not only greatly reducing the assets of ordinary people but also making the balance sheets of U.S. commercial banks very ugly.

In the second quarter of this year, Russia's GDP growth rate gradually rose to over 5.3%. The U.S. has just lost in terms of personal assets of ordinary people, and it is very likely that it will also lose to Russia in terms of macroeconomics in the next round.