The article mentions,U.S. TreasuriesThe holders can be roughly divided into two parts: domestic and foreign. According to the U.S. Treasury Department, as of the end of March 2023, Americans held about 70 percentUnited States**bonds, while foreign holders account for about 30%. Investors in the U.S. include:Federal**, Federal Reserve Board, Commercial Banks, Retirement**, Insurance Companies, Individuals, and Other Institutions. And abroad, the investors are mainly foreign **andInternationalorganizations, foreign ** banks andSovereign wealth**, abroadFinanceInstitutions and individuals.
It is worth noting that at the momentU.S. TreasuriesThere has been a downward trend in demand, both overseas investors and the Federal ReserveU.S. Treasuries, while domestic investors in the United States areOverweightU.S. Treasuries。This situation can raise questions such as:U.S. Treasurieswhether the crisis will erupt, and if it does, it will affect the United States and the worldEconomyWhat an impact.
However, regarding the holders and changes in US Treasuries, we need to do further research and analysis to fully understand the current situation and future trends.
The article statesU.S. TreasuriesThe crisis is mainly manifested in:United States**It may not be possible to repay the due ones on timeDebtwithInterest, which triggers the risk of default. The roots of this crisis lie in the unique democratic system of the United States andBudgetDecision-making mechanisms. U.S. ConstitutionRequirements** must be approved by Congress to borrow, which includes determinationDebtof the term、Interest ratesand how it is used. However, approving borrowing one by one increases the burden on Congress and limits the flexibility of funding. From 1917 onwards, Congress continued to relax the rules for the issuance of bonds, until 1939, when they were completely abolished. Instead, it was authorized by CongressFederal**A loan facility, but the loan must not exceed the total liability ceiling, or it must be re-approved by Congress. That's what we hear a lotDebtQuota issues.
In American democracies, onceFederal**The maximum amount of liabilities was reached, and the new oneBudgetIf the appropriations plan is not approved by Congress, then ** will face insolvency due to itDebtwithInterestand may in turn lead to bankruptcy. This will have a negative impact not only on the domestic side, but also on theworld economyThere will also be significant adverse effects. Domestically, the lives of residents will be affected in many ways after the shutdown. For example, a series of normal livelihood activities such as buying a house, applying for a passport and a gun license will face difficulties; Public hospitals will no longer receive new patients in outpatient clinics; Public services such as garbage disposal and livelihood projects will be affected. In addition, the United StatesEconomyIt will also be affected to some extent. Tourism and related industries will be hit hard due to the closure of national parks, the closure of national museums, the closure of visitor centers, etc. In addition, the reduction in spending will lead to a decrease in consumer spending by employees, increasing uncertainty for consumers and investors, and affecting transactions due to visa extensions.
More seriously, America's credibility could be tarnished. DebtOnce a crisis erupts, it can lead to beautyTreasury bondsThe bonds will be downgraded, the dollar will depreciate, and the United States' voice in the world will also be weakened.
Globally,U.S. TreasuriesThe crisis could trigger a series of ...FinanceDisasters such as:U.S. Treasurieswas sold off in large quantities, and the interests of creditors were damagedInterest rates, dollar depreciation, bank bankruptcy, etc. This will make the worldEconomyEspecially emergingEconomyThe shock was much greater than that of the 2008 eruptionFinanceCrisis.
To sum up, beautyTreasury bondsThe risk of a crisis cannot be ignored. We need to recognize the magnitude of the problem and seek solutions.
In order to solveU.S. TreasuriesThe crisis is neededUnited States**and the joint efforts of Congress, as wellInternationalSocial cooperation. Here are some possible solutions and suggestions:
First of all,United States**And Congress should reach an agreement as soon as possible to raiseDebtcap to avoid the risk of default. This requires all parties to be politically andEconomylevel to ensure that the repayment is due on timeDebtwithInterest
Second, we should formulate a rational fiscal systemBudget, control the ** expenditure, reduceFiscal deficits, loweredDebtBurden. This will require ** and Congress to carefully consider the various expenditures and take appropriate measures to balance themBudget
In addition, the United States should reform its unique democratic system andBudgetDecision-making mechanism, avoidDebtThe ceiling issue has become a tool for political games, affecting the normal operation of the ** andInternationalCredibility. We can refer to the practices of other countries to establish a more flexible and efficient borrowing mechanism to reduce unnecessary disputes and risks.
In addition, the United States should adjust itDebtEconomymode, increase foreign investment and exports, reduce foreign exportsDebtand imports, to increase domestic production and savings, promoteEconomyOptimization and balance of the structure. This will help to reduce pairsDebtdependence, decreasedDebtRisk.
Finally, the United States should abandon the practice of indiscriminate banknote issuance and borrowing that is overly dependent on the hegemony of the dollar, respectInternationalCurrency andFinanceOrder, maintaining the worldEconomystability and development. This will help with recoveryInternationalSociety's trust and credibility in the United States.
To sum up, beautyTreasury bondsThe crisis is a serious challenge that requires the joint efforts of all parties to solve it. United States**and Congress should act to avoid the risk of default and develop sound fiscal policy. InternationalSociety should also actively cooperate and respond togetherDebtThe risk of crisis promotes the globalEconomyrecovery and growth. ResolvedU.S. TreasuriesCrises require wisdom and courage, as well as responsibility and responsibility. We look forward to the United States and the world working together to meet the challenges and create the future.