Bonds rise on U.S. aid

Worried, ridicule, disgust, questioning, complaining, anger, stock market crash, the credit down ... ... the world's people have never been so 'enthusiastic' concern U.S. Treasury bonds.

Than negative emotions, it seems that few people seriously think about a basic question: the bond market rise and the dollar hegemony for the United States played a role in what exactly? To simply get rid of dependence on the dollar and U.S. Treasury bonds, we in the end how? To answer this important question, we must examine the U.S. financial revolution and the long history of U.S. Treasury bonds.

Unified U.S. government bonds in the United States after the issuance of the founding of the specific time is 1792 and it first from the U.S. Treasury, extremely talented Hamilton launched by the beginning of the creation of America's financial revolution.

Hamilton built for the U.S. monetary and financial system has five pillars: a unified bond market, the Central Bank led the banking system, a unified coinage system (at that time is gold, silver and bimetallism, tariff and excise tax system as the main and to encourage the development of the financial industry and trade policies.

Hamilton's financial revolution most significant feature is: throughout his credit from the perspective of the overall design of the five national policies and appropriate institutional arrangements. Designed according to Hamilton, the country's overall bond market is the best indication of credit pros and cons device, the central bank responsible for maintaining the banking system and money supply of stable, unified coinage system (later the U.S. dollar financial and trade notes system significantly reduces transaction costs, promoting financial, trade, industry, the rapid development of the tax system to ensure sound financial and debt virtuous cycle of market, industry (the ability to create real wealth is the ultimate monetary base.

The reason make every effort to turn the U.S. financial revolution, but from Hamilton's financial philosophy, from his history of the world economy, especially the rise of the UK's profound grasp of historical experience.

Far before he became Treasury Secretary, Hamilton wrote: 90 years of the 16th century began, the British Empire created the Bank of England, after-tax system and the bond market. 18 century, the British bond market has developed rapidly. The rapid expansion of the bond market, not only did not weaken the United Kingdom, but to create countless great interest bonds to help the British Empire created the Royal Navy, won the world war, but also to maintain the position of global business empire.

At the same time, the bond market has greatly promoted the country's economic development individuals and businesses to finance mortgage debt, the expansion of bank credit to government bonds as a reserve, the British government bonds to foreign investors as the best investment products. To the prosperity of the United States, in order to to free themselves from the United States to Britain and Europe rely on financial and capital markets, the United States must quickly establish their own bond market and financial system.

Hamilton quickly verify the historical foresight and vision .1780 years, or U.S. financial markets mess, just ten years after 1794, European investors gave the U.S. Treasury and the financial markets with the highest credit rating when the French foreign minister declared: 'The U.S. Treasury well-functioning, safe and reliable, the U.S. government bond market, the management is so standardized, the U.S. economy is so rapid, so we never worried about the safety of U.S. Treasury bonds.' It is the national credit The perfect stimulus funds flow into the United States of Europe, to promote U.S. economic growth.

U.S. economic historian Yue Hange Burton has described the bond market for the U.S. economy, finance and the national strategy of extreme importance: 'the 1770s, government bonds to help us win independence ,1780-1860, the bonds of the United States to win the highest credit rating, the European funds to be rolling into the United States to help the U.S. economy grow rapidly in 1860, with our national debt to save America, the 1930s, we save the U.S. economy with debt, and years later, we save the world with debt. mm No doubt, Hamilton completely correct, the U.S. national debt is not only the gospel of the United States of unparalleled and incomparable gospel for all mankind. 'Links to free download http://eng.hi138.com

National Debt Research Papers