Russia has set an example for the world to go to the dollar, but the United States feels that Russia is taking the lead.
Now Russia basically does not use the dollar for settlement, and at the same time, Russia's holdings of US debt have been as low as more than 100 million US dollars, which is equivalent to nearly emptying.
And both of these are things that the United States is particularly worried about other countries following suit.
Currently, the U.S. federal debt has reached 33$93 trillion, a number that continues to grow, and the United States may open another $20 trillion in IOUs in the next decade.
Americans have made it clear that they are defaulting on their debts, and they are still comfortably increasing their borrowing.
Soaring debt and fiscal deficits have always been a ticking time bomb for American finance.
Credit conditions have tightened further as a result of rogue behavior in the United States in recent years, and the downgrade of the U.S. credit rating has exacerbated the backlash on Treasury bonds.
Interest expenses have increased more than in the previous 50 years over the past three years, and U.S. Treasury Secretary Janet Yellen has repeatedly complained that interest rates are too high, resulting in too high interest costs for U.S. Treasuries.
For Yellen's blame, Powell is unwilling to take responsibility. Now there are no more interest rate hikes, and Treasury yields have fallen, but the crisis has not passed. Obviously, interest rates are not the key reason.
JPMorgan Chase & Co. CEO warns that the United States will now be in a situation several times worse than the financial collapse of 2008. And the new debt king Ganglaq directly said that the US economy will enter a recession in January 2024.
In this context, we look back and see that Russia's continuous sell-off of US bonds is very prescient.
In 2010, Russia held $176.3 billion in U.S. debt, and until 2014, when the Ukraine crisis first began, Russia held $131.8 billion.
But by April 2015, Russia had sold half of its U.S. bonds, reducing its holdings to $66.5 billion.
The subsequent continuous sell-off left only 10 billion in 2019, and by September 2021, before the outbreak of the Russia-Ukraine conflict, the balance was less than 4 billion.
Until July this year, Russia's balance was even as low as 29 million.
It is precisely because of Russia's continuous sell-off that the losses caused by the continuous loss of US bonds have been reduced to the greatest extent possible. And this is also something that other countries can learn from.
As for the current situation of US bonds, Russia ** said in a gloating tone:This is all self-inflicted by the United States.
Now not only central banks are selling US bonds, but even the US Federal Reserve, its own central bank, has been desperately selling US bonds in the past year and a half.
In addition to this, the rich people in the United States are trying to find a way to evacuate.
The retreat of the rich is associated with high fiscal deficits and high tax programs for the rich. Because the solution to the deficit in the United States is equivalent to distributing the debt to taxpayers in the states, such as New York City, which will get 5$60,000 in debt.
Of course, the rich are not happy to help the country deal with the mess, so they hurriedly run away.
The number of homeless people also reached a record high of 653104 for the number of wealthy people fleeing. These are all manifestations of the struggle of the US economy on the edge of the abyss.
On top of that, a number of issues, such as uncertain economic policies, weak manufacturing data, and excessive pension debt, are weighing on the U.S. economy.
In this regard, US Treasury Secretary Janet Yellen said that the situation is "critical", she acknowledged that there is a possibility of bankruptcy of the national debt, but still stressed that the US debt is indispensable. To this end, Yellen said that in 2024, she will continue to discuss cooperation with major buyers of U.S. bonds, including in areas such as debt.