In recent years, the U.S. debt problem has raised concerns, especially with recent data that has left Yellen frowning — 70 percentU.S. TreasuriesSnapped up by foreign buyers. This means that American families will be the target of the harvest once the crisis erupts. So, who exactly bought so muchU.S. TreasuriesWhat about it?
According toBank for International Settlementsreport, data shows that as of 2023, about 70%.U.S. TreasuriesHeld by a foreign buyer. China is the largestU.S. TreasuriesThe holding country has been for many yearsU.S. TreasuriesAs itsForeign exchange reservesimportant components. However, China is rightU.S. TreasuriesThere are also significant risks associated with dependencies. Once the United StatesEconomyEncountering a major crisis, China holdsU.S. TreasuriesThe value will be substantially ** for ChinaEconomyCause a huge impact.
In addition to China, Japan is also the sameU.S. TreasuriesOne of the important holding countries. Japan** and companies will for a long timeU.S. TreasuriesSeen as a safe and stable investment option. However, JapanEconomyfaced many structural challenges, once the United StatesEconomyIn the event of a difficult situation, Japanese investment will also be at great risk. In addition, many other countries are also buyingU.S. Treasuries, including Saudi Arabia, Luxembourg and Brazil, among others. These countries buyU.S. TreasuriesThe motives vary, but they all face similar risks once the United States is in crisis, what they holdU.S. TreasuriesThe value will shrink dramatically.
The worry, however, is that once the crisis erupts, it will be American families who will be the target of harvesting. U.S. TreasuriesThe collapse of the market will cause interest rates in the United States to soar, directly affecting the cost of loans for American households, including mortgages, car loans and credit cards. Many families will face high interest payments, which can lead to financial distress or even bankruptcy. In addition,U.S. TreasuriesMarket turmoil could also trigger a global financial market** and the real estate market could be substantial**, which in turn could affect household wealth and investment portfolios, and many people's pensions and investments would also be severely damaged. The outbreak of a crisis can also lead to:EconomyWith a recession and rising unemployment, many families will lose their jobs and life will become more difficult.
In order to circumvent these shortcomings and absorb the advantages, there are a few things that both the family and the family need to do. **Fiscal discipline needs to be strengthened, debt levels lowered, and new ones neededEconomyGrowth. Reducing the debt burden can reduce interest rate risk while looking for new onesEconomyGrowth points can reduce dependence on the debt market. On the household side, there is a need to manage one's finances prudently and reduce risk by saving and diversifying one's investments. In addition, buy robust insurance and make it urgentFunding planIt can also help families cope with the unforeseenEconomyPlight. In addition,InternationalCooperation is also a solutionU.S. TreasuriesThe crux of the issue is that countries should strengthen cooperation and jointly respond to the global problemEconomyChallenge. By strengthening regulation and information exchange, financial risks can be reducedU.S. TreasuriesDependence of the market.
Overall, 70%.U.S. TreasuriesHeld by a foreign buyer to the United StatesEconomyComes with a huge risk. Once the crisis erupts, the harvest will be targeted by American families. Therefore, both the ** and the family need to take steps to circumvent the disadvantages and absorb the advantages. Only by strengthening fiscal discipline, prudent management of personal finances and strengtheningInternationalTogether, we can copeU.S. TreasuriesThe problem brings the challenge to ensureEconomystability and well-being of the family.